The general contractor of Nautilus 220 filed a legal claim against developer Forest Development for more than $11 million.
Kast Construction placed a $11.4 million lien on Forest Development’s $269 million Nautilus 220 project at 220 Lake Shore Drive in Lake Park on May 13. The lien amount is for labor, services and materials for the 24-story waterfront luxury condo complex, according to Palm Beach County records.
Kast Construction, headed by CEO Mike Neal, did not immediately respond to requests for comment.
Forest Development managing partner Peter Baytarian said the lien was due to a dispute over the project’s “final contract amount, change orders and contractor delay claims.”
He said the dispute will have no impact on its other projects in neighboring Riviera Beach, including a $556.1 million phased redevelopment of Marina Village. Nautilus 220, Oculina, Marina Village and 1851 Broadway are financed separately, he said.
Kast Construction isn’t the only company that filed liens on Nautilus 220. About $2.9 million worth of liens were levied on the property by project subcontractors this year, including a $1.16 million lien filed by Pomeroy Electric and two liens from Jorda Mechanical Contractor totaling $543,808. Other companies that hit the Nautilus 220 project with liens include Duct Design Central Florida ($643,318), Pacific Glass ($446,673), Griffin Stucco ($42,526) and Sherman-Williams ($36,623).
Daniel Kodsi’s Royal Palm Companies, Forest Development’s venture partner in Nautilus 220, was not mentioned in any of the liens, although the owners of the Nautilus 220 condo are cited by some of the liens filed by subcontractors.
Forest Development beat out rival bids from The Related Group and Sonnenblick Development for the opportunity to build restaurants, retail, hotel rooms and condos on 12-acres of waterfront land owned by the city of Riviera Beach in a bidding process that reportedly attracted the attention of the FBI.
Forest Development’s proposed project includes a 20-story Marriott Autograph Collection hotel, a 20-story condo with boat storage, a 10-story convention center, three three-story restaurant/office buildings, and 2,300 new parking spaces.
According to a bid summary provided by JLL,
Forest Development’s financing for the Marina Village project would come from the balance of more than $300 million in active loans from Fortress Credit Corp and iThink Financial Credit Union for the Nautilus 220 and the Residences at 10th & Park project in Lake Park’s downtown district.
Besides Marina Village, Forest Development is also negotiating with the city of Riviera Beach on a final price to acquire 2.2 acres at 1851 Broadway, about half a mile away from Marina Village, which could range anywhere from $3.8 million to $7.8 million, depending on how many residential units are built on that site.
Forest Development intends to break ground soon on Oculina, a pair of 25-story condos that will be built just 1,600 feet from Nautilus 220.
Forest Development had substantially completed construction of Nautilus 220 on March 25. The 330 residences range from $1.4 million to $4.6 million, the Palm Beach Post reported.
At least two condo buyers have filed lawsuits in Palm Beach County circuit court seeking their deposits back. TigerWolf PH 02, LLC, managed by John Fiorella, wants his $716,680 deposit returned for a $3.58 million penthouse after Forest Development allegedly failed to build either an in-ground pool or an “integrated deck concept,” per its April 17 lawsuit. Buyer Edward Lederman charged in his May 18 breach of contract lawsuit that he lost his $342,000 deposit for a $1.7 million residences while awaiting for a series of “defects” in his contracted unit to be fixed.
Baytarian said his company works with buyers who want to leave their purchase agreements.
“More than 250 purchasers have successfully closed on their condominiums,” Baytarian said. “Over the course of a four-year construction timeline, personal circumstances can change, and from time-to-time buyers may seek to exit their contracts. In those situations, we take a reasonable and practical approach and work collaboratively toward reaching an amenable settlement.”