In December 2023, David Stern closed on his $1.8 million purchase of a unit at Amrit Ocean Resort, an oceanfront condo-hotel on Singer Island, a barrier island north of Palm Beach.
The following year, he found himself in the courts, suing the developer and managers of the LLCs that built the two-tower project on a nearly 7-acre plot of land at 3100 North Ocean Drive in Riviera Beach. His lawsuit hinged on the Florida statute governing condo associations and turnover of the associations’ boards. Stern alleged the developer failed to hand over control to the unit owners in a timely manner.
The case was scheduled for trial later this summer but was dismissed and settled last month, court records show. Stern’s lawsuit was one of a handful brought against the developer and its affiliates since the condo-hotel was completed, but owners have expressed their discontent with the project through other means.
Stern previously told The Real Deal that he was one of three dozen owners who weren’t happy with the condition of their units and the amenities.
Many of the problems playing out at Amrit aren’t uncommon across South Florida, where the laws governing condo-hotels can favor developers, not unit owners. Overall condo construction litigation appears to be on the rise as more projects, many of which are delayed, including Amrit, get completed.
Amrit, named after a Sanskrit word that means “immortality,” was relaunched in 2017 by Dilip Barot, whose website labels him a successful real estate entrepreneur. Barot, the Indian-born founder of the Palm Beach Gardens-based real estate and technology firm Creative Choice Group, canceled a previous version of the project when the condo market went bust a decade earlier, returning buyers’ deposits, the Palm Beach Post reported at the time. He was the face of the project.
The focus on wellness took center stage when he launched Amrit in 2017. The east building was to be named Peace, and the west building Happiness. The project would include a hotel component with shared amenities, including a four-story, 100,000-square-foot spa and an oceanfront pool deck. Buyers were offered access to monthly wellness consultations and personalized plans, spa treatments and more.
But cracks have formed in that Zen façade.
In addition to the lawsuits, the Post reported in April that owners were furious that they couldn’t claim homestead exemption on their units because units are zoned as hotel resorts and not traditional condos. Buyers began closing on units at Amrit in October 2023.
A spokesperson for Amrit Ocean Resort told TRD that Amrit Ocean Resort & Residences relied on Palm Beach County Property Appraiser’s Office confirming that the resort hotel zoning designation would not prevent a qualifying owner from receiving a homestead exemption. A 2020 letter addressed to James Brown, a manager of the developer’s LLC, states that the zoning designation has no effect on a resident claiming homestead exemption. The Amrit spokesperson said Amrit is working with the parties involved to help resolve the issue.
While Barot was the face of the project, he and his daughter Shama worked together on Amrit with other partners, including Brown. Reggie Cooper, Robin Prakash and attorney Mandell Sundarsingh, also appear on filings tied to the project and some of the lawsuits.
Amrit “strongly rejects claims of ‘shoddy construction’ and disagrees with the allegations” outlined in the complaints, the spokesperson said. “More importantly, Amrit has ensured that the building is well-maintained, and is now working hand in hand with the support of the Associations for the same,” according to their statement.
Here’s the timeline of the litigation:
2024: Unit owner David Stern sues
Stern sued Wellness Resorts LLC, Wellness Residences LLLP, Amrit Ocean Resort II Condominium Association (then controlled by the developer), Yash Pal Kakkar, Brown and Cooper in 2024 over what he alleged was the developer and developer-controlled association’s illegal control of the condo association. Stern also said the developer stopped offering units for sale in the second tower in order to keep control of the association. Since then, the developer has turned over control.
Amrit’s spokesperson said the case was resolved “through an agreed-upon timeline for that transition, which has since occurred.”
2025: Condo association files suit over board turnover
The condo association for the east tower sued Wellness Resorts LLLP a year ago, alleging the developer violated Florida law by failing to turn over the “as-built” plans.
The complaint alleged that the condo declaration mischaracterized condo components that are instead “clearly common elements,” resulting in the misappropriation of ownership of the common elements. This, the lawsuit alleged, “grants the hotel parcel owner virtually unlimited control and authority over these common elements.”
Amrit’s spokesperson said that they “believe the governing documents and operational structure were properly established” and that “each buyer, their attorneys and lenders had this information at the purchase and sale and further at closing to decide if the lifestyle was right for them.”
Henry Handler, an attorney for the condo association for the east tower, declined to comment on the pending litigation.
2026: Condo association sues over construction claims
In May of this year, the association sued Wellness Resorts and Wellness Resorts & Spa, and the construction team, which includes Optimal Construction, Paramount Consulting & Engineering, S&E Architects and CAP Government, alleging a laundry list of construction defects.
It claimed roofing failures caused water intrusion; corrosion affecting the air conditioning, plumbing, electrical and fire sprinkler systems; structural issues with cracking stucco, deteriorating concrete and water migration; window and glazing failures; and operational deficiencies with the elevators and other building components.
The complaint alleges the developer and construction team violated Florida’s building code, and it raised claims of breaches of statutory, express and implied warranties, as well as negligence.
Haber Law attorney Daniel Levin, who represents the association, previously said the association notified the developer and construction team last year of the issues, but received “nothing but crickets.” Levin also said that associations are found holding the bag for issues they should not be responsible for.
The case is ongoing.
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“Subpar construction”: Amrit Ocean Resort owners sue developer, construction team over alleged defects