Fort Partners will move forward with its planned buyout of the Harbor Towers condominium in West Palm Beach after reaching a settlement with Related Ross, ending a legal dispute that began earlier this year.
The disagreement began in April when an affiliate of Related Ross filed for an injunction to block Fort Partners from making changes to the condominium declaration at Harbor Towers, located at 3901 South Flagler Drive. The complex consists of two buildings and 61 units on two acres of waterfront property. On October 17, attorneys confirmed that both parties settled out of court. Glen Waldman, attorney for Nadim Ashi’s Fort Partners, stated that the terms remain confidential but affirmed Fort Partners’ intention to proceed with terminating the condo association.
Harbor Towers is one of three sites along South Flagler Drive involved in negotiations between the developers. Together, these sites cover almost 4.3 acres across from Mar-a-Lago Club on the Intracoastal Waterway. Other properties include Southbridge, a 60-unit condominium at 3915 South Flagler Drive, and a multifamily complex at 3907 South Flagler Drive and 3906 Washington Road.
Last year, both developers made offers to purchase units at Southbridge. Related’s $42 million offer was accepted by owners—a figure that averages $700,000 per unit despite most being valued around $200,000 by county appraisers. Since December, Related has closed on purchases for 17 units; it is not clear when or if they will complete acquisition of the remaining units.
Meanwhile, Fort Partners acquired the neighboring apartment complex at 3906 Washington Road and 3907 South Flagler Drive for $20 million last November.
Competing deals between affiliates of Related and Fort Partners emerged this spring regarding Harbor Towers. Waldman said Fort had already secured agreements with most unit owners and gained control over the condo board before Related sought legal action in Palm Beach County Circuit Court. In September, tensions increased as Related tried to prevent depositions involving Steve Ross and executive vice president Jordan Bargas; Fort’s lawyers accused them of delaying under pretenses of settlement talks. A resolution was reached two weeks later.
Waldman noted he was comfortable representing Fort Partners because their offers exceeded assessed values by a wide margin: “The amount of money being offered was significantly in excess of what [the units] were worth,” he said. “These owners were making so much money, there are no losers here.”
Representatives for Related did not respond to requests for comment.
