In 2022, Two Roads Development, led by Taylor Collins and Reid Boren, acquired most of the units at Biscayne 21, an older condominium building in Miami’s Edgewater neighborhood. After gaining control of the condo association, the developer moved to amend the building’s termination statute, lowering the required consent for termination from unanimous approval to 80 percent. This legal step was intended to allow for demolition of the building.
The purchase was financed with a $45 million mezzanine loan from Lionheart Strategic Management LLC and a $105 million senior mortgage from Bank OZK. Two Roads subsequently began marketing a new Edition Residences project for the site.
However, some owners who did not sell—referred to as holdouts—filed a lawsuit against both Two Roads and the developer-controlled association. As legal proceedings continued, all residents vacated the building, which is now uninhabitable.
Earlier this year, Florida’s Third District Court of Appeal sided with the holdout owners. The court ruled that the original condominium declaration required unanimous consent for termination and invalidated the amendment passed by the developer-controlled association. This decision was a setback for Two Roads and a win for those owners who resisted selling.
Two Roads attempted to appeal to Florida’s Supreme Court, but the state’s highest court declined to hear the case. With no further options for appeal, Two Roads has lost leverage in negotiations with remaining unit owners and has not commented on its next steps.
Legal experts suggest two possible outcomes: either Two Roads settles with holdout owners—potentially with help from a new equity partner—or is forced to repair and reopen Biscayne 21 as a rental-heavy condominium building. David Podein, an attorney at Haber Law not involved in the litigation, said market forces will likely determine what happens next: “At the end of the day it is an extremely prime piece of waterfront property,” Podein said.
Glen Waldman, attorney for the holdout owners, said lenders will play a key role in resolving matters moving forward. Waldman plans to amend his legal filings to seek over $100 million in damages from Two Roads as proceedings return to state court. Waldman stated: “Two Roads is in a terrible position and they deserve it. They’ve destroyed [my clients] homes with no right. Now we go after them like there’s no tomorrow.”
In other Miami real estate news:
– Developer Mark Pulte sold a 14,000-square-foot oceanfront mansion in Delray Beach for $59 million.
– Cofe Properties purchased two warehouses in Medley for $26.8 million from Prudence Investments.
– Developer Armando Codina listed his Coral Gables estate for $45 million; he plans to move into a luxury apartment being built by Codina Partners.
– Miami-Dade County commissioners approved new legislation aimed at making community composting more accessible and affordable; this measure could help address landfill shortages and reduce methane emissions by diverting organic waste from landfills (https://www.miamiherald.com/news/local/environment/article278834814.html).
