Legal Setback for Two Roads Development: Edgewater Condo Buyout Disputes Continue
Two Roads Development’s plans to redevelop Biscayne 21 in Miami’s bustling Edgewater neighborhood have hit a significant snag as legal battles with holdout unit owners continue. The company’s proposed luxury condominium project, Edition Residences, has been put on hold due to ongoing litigation regarding a condo buyout.
Background of the Dispute
The Third District Court of Appeal recently issued a ruling that favored eight holdout owners of the Biscayne 21 condo complex. These owners have been at odds with Two Roads over the developer’s attempts to acquire the remaining units for a buyout, essential for the planned redevelopment.
Key points of the case include:
- Initial Purchase: In 2022, Two Roads acquired over 80% of units in the Biscayne 21 building—a 1964 structure featuring 192 units—at a cost of approximately $150 million.
- New Project Launch: Later that year, Two Roads initiated sales for the first of three proposed towers in the project, a 55-story structure with units starting at $1.7 million.
Legal Developments
In 2023, holdout owners, including Angelica Avila, Nicolas Bello, and others, filed legal action against Two Roads and the developer-controlled condominium association. They argued that the association unlawfully amended the condo declaration, lowering the necessary approval for a condominium termination from 100% to 80%.
Recent Court Rulings
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March 2024 Opinion: The Third DCA reversed a lower court’s decision, stating the amendment fundamentally altered the voting rights of unit owners. This ruling underscores that the original condo declaration allowed each unit owner to effectively veto any termination—making the association’s vote to amend the declaration invalid.
- Rehearing Denial: Two Roads’ request for a rehearing was denied, leaving them in a precarious position. The updated ruling provides the holdout owners with substantial leverage as they continue to resist the buyout.
Future Prospects
The developer plans to petition the Florida Supreme Court to review the case, although the outcome remains uncertain. Attorney Glen Waldman, representing the holdouts, expressed optimism regarding their position, suggesting that even a Supreme Court review might not favor Two Roads.
Implications for Future Buyouts
The Third DCA’s decision poses significant ramifications for future condominium buyouts throughout Florida:
- Potential Precedent: Developers fear that this ruling could create hurdles for similar condo buyouts in other projects, leading to a disruption in real estate transactions across the state.
- Industry Reaction: Two Roads’ managing partner, Taylor Collins, criticized the prolonged legal proceedings, claiming that the initial ruling has already inflicted "billions of dollars" in damage to the real estate industry.
Industry Support
In response to the developments, prominent industry players have rallied around Two Roads. Last April, major development firms, including the Related Group, Fortune International, and Dezer Development, submitted a brief advocating for a reversal of the court’s decision, highlighting the widespread concern regarding its implications.
Conclusion
As Two Roads Development awaits the next steps in this ongoing legal saga, the case has placed a significant spotlight on the complexities and challenges within condominium buyouts in Florida. With the Third DCA’s latest ruling reaffirming the power of individual unit owners, the landscape for condo developments may face disruptions that resonate well into the future.
For more insights into condo buyouts and relevant legal frameworks, visit Florida Condo Laws and stay updated on potential changes affecting real estate transactions across the state.