Two Roads Development and Frisbie Group settled litigation over which has dibs to develop a pair of luxury condominium towers on a waterfront site in West Palm Beach.
The two-year long dispute was tied to a 3.4-acre site at 1355 South Flagler Drive, where Frisbie and Hines now plan the pair of 28-story South Flagler House buildings with 82 condos and seven townhouses. Two Roads had sued Frisbie and the site’s seller, Palm Beach Atlantic University, claiming Two Roads was in line to close on the site with plans for a similar project.
On Wednesday, a federal judge closed the case after the sides on Tuesday filed a joint notice of settlement, according to court records. The terms of the settlement aren’t disclosed in court records.
Palm Beach-based family-owned and run Frisbie and Houston-based Hines paid $41.5 million for the land that overlooks the Lake Worth Lagoon last summer. A few months prior, they had launched sales, with starting prices of $10 million for condos and $75 million for the pair of duplex penthouses.
In late 2021, even before the deal closed, Two Roads had sued, alleging that it already was negotiating with PBAU to buy the site. It alleged that the university and Frisbie secretly worked together on a deal, and planned to “steal” Two Roads’ project plan. At one point, Frisbie appeared that it would partner with Two Roads, only to change course, according to court records.
In filings, PBAU and Frisbie denied the claims and called Two Roads a “failed” bidder. The lawsuit scared off potential lenders and unit buyers, who have collectively put down $480 million to reserve units but were having reservations about going into contract, according to Frisbie court filings.
Palm Beach-based Frisbie was founded by Dave, Rick and Robert Frisbie Sr.
Two Roads, led by Taylor Collins and Reid Boren, has offices in Palm Beach and Miami. The firm declined comment.
In identical but separately emailed statements, Two Roads’ attorneys and Frisbie said the lawsuit resolution wouldn’t just benefit the parties involved in the case. “The parties have agreed to resolve this matter for the betterment and benefit of the entire West Palm Beach community,” the fstatements said
South Flagler House will mark Robert A.M. Stern Architects’ first high-end residential project in Florida. Frisbie and Hines have started demolition of the closed PBAU dormitory on the development site, according to county records.
Several South Florida’s college campuses, or at least portions of them, have caught developers’ eyes. After land prices surged during the 2021 market boom, developers seized on campuses freed up because of a slump in enrollment. In North Miami, shuttered hospitality school Johnson & Wales University’s campus was sold off in portions to developers. Related Group plans the eight-story Manor Biscayne with 382 apartments on 2.3 acres on the former campus site.
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