Florida Supreme Court Rejects Biscayne 21 Buyout Appeal, Burying Hope For Termination Clarity

The Supreme Court of Florida shot down Two Roads Development’s appeal in a closely watched case involving the buyout of a 61-year-old condo tower in Edgewater.

The state court denied the developer’s petition for review on Tuesday, cutting off its last legal remedy to revive its plans to build luxury condo towers to replace the Biscayne 21 building, Miami Condo Investments reported.

Two Roads managing partner Taylor Collins declined to comment on the ruling but said in a text message exchange with Bisnow that the firm is “focusing on next steps.” 

The developer purchased the majority of units at Biscayne 21 at 2121 North Bayshore Drive in 2022 for $150M and later launched sales for a planned three-tower, 55-story luxury condo project branded by Marriott International’s Edition.

After taking control of the building and terminating the condo association, Two Roads moved to pave the way for demolition on the Edgewater site.

But in 2023, 10 residents of the 13-story, 192-unit condo tower filed a suit to block the demolition and accused Two Roads of illegally lowering the required approval threshold from 100% to 80% for a condo termination.

Two Roads landed a brief victory when a lower court allowed it to proceed with the buyout, but the Third District Court of Appeal found fault in the decision in March 2024 and slapped the developer with a temporary injunction — ruling that the developer couldn't terminate without the consent of every resident.

It took the Third District Court of Appeal more than a year to double down on the ruling and side with the holdout owners in July, denying Two Roads’ request for a rehearing.

“While it remains to be seen if our clients can move back in their homes based on the condition of the building after being vacant for two years, we look forward to proceeding with our claims and recovering the significant damages our clients deserve,” Armstrong Teasdale attorney Jeffrey Lam, who represents the holdout owners in the case alongside Glen Waldman, said in a statement.

It's unclear what the next steps for the building are, but the ruling could force Two Roads to pursue a larger buyout offer to the holdouts rather than treat the nine-figure sum it has spent thus far as a sunk cost.

Developers had hoped a ruling in Two Roads' favor would grant more certainty in the process of condo association terminations for those looking to replace aging buildings with new construction.

With the state's highest court siding with holdout owners, the case has left many hesitant to pursue condo terminations due to unclear legal standards over approval thresholds and litigation fears. 

Amid a backdrop of widespread financial pressures for owners of older buildings, driven by new state laws mandating recertification and reserve funding, many hoped this year's legislative session would carve out a clearer path to forced termination and demolition of condo associations and their buildings.

But Gov. Ron DeSantis signed a slimmed-down condo safety law update this year without addressing those concerns.

Bilzin Sumberg real estate attorney Joseph Hernandez said he was surprised by the Supreme Court’s decision and added that next year's legislature is one of the only paths to draft a solution.

“To me, it’s almost impossible to unwind this,” Hernandez said.

With an incoming Dec. 31 deadline to fully fund reserves and condo owners increasingly turning to developers asking for buyouts, Hernandez said he expects condo buildings will fall into distress as developers keep their distance due to not being able to navigate the legalities.

“I’ve always said I’m not in the gambling business, I’m in the real estate business,” BH Group founder and CEO Isaac Toledano said in a statement over email.

“Condo terminations aren’t quick flips," he added. “They’re complex, time-consuming processes that demand patience, capital and consensus to succeed."