Fort Partners is set to move forward with its planned buyout of Harbor Towers, a condominium complex in West Palm Beach, after reaching a settlement with Related Ross. The legal dispute began in April when an affiliate of Related Ross filed for an injunction to prevent Fort Partners from making changes to the condominium declaration at Harbor Towers. The case concluded on October 17 with an out-of-court settlement, according to Glen Waldman, attorney for Fort Partners’ principal Nadim Ashi. Details of the agreement were not disclosed.
Harbor Towers consists of two buildings and 61 units located at 3901 South Flagler Drive. Fort Partners intends to terminate the condo as part of its acquisition strategy.
The conflict between the developers extended beyond Harbor Towers and involved three waterfront properties totaling nearly 4.3 acres across the Intracoastal Waterway from Mar-a-Lago Club. These include Harbor Towers, Southbridge at 3915 South Flagler Drive—a 60-unit condominium—and a multifamily complex at 3907 South Flagler Drive and 3906 Washington Road.
Last year, both companies made offers for Southbridge, with Related’s $42 million bid prevailing. This offer averaged about $700,000 per unit, which is significantly higher than most units’ estimated market value of around $200,000 each by the property appraiser. Since December, Related’s affiliate has closed on purchases of 17 units at Southbridge; it remains uncertain when or if additional units will be acquired.
In November, WPB S Flagler Owner LLC—an affiliate of Fort Partners—purchased the adjacent apartment complex at 3906 Washington Road and 3907 South Flagler Drive for $20 million.
Competing offers for Harbor Towers began in spring from both parties’ affiliates: Harbor Towers Acquisitions LLC (Related) and WPB Harbor Towers Acquisition LLC (Fort). According to Waldman, Fort secured deals with most unit owners and gained control over the condo board before Related filed suit in Palm Beach County Circuit Court seeking an injunction against proposed changes by Fort Partners.
The legal proceedings intensified in September when Related sought protective orders against depositions involving Steve Ross and executive vice president Jordan Bargas. Attorneys for Fort accused Related of delaying under pretense of settlement negotiations; two weeks later, both sides reached an agreement.
Waldman stated that he was comfortable representing Fort Partners due to their high purchase offers: “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.”
