Developer Ordered to Rebuild Gutted Condo—for $65M

A real estate developer that tried to change the rules to suit itself has been ordered to rebuild a condo tower it spent nearly a year ripping apart. The Wall Street Journal's Deborah Acosta reports that a Florida court has ordered developer Two Roads to restore Biscayne 21—a 192-unit 1960s-era building it has already largely stripped—after finding the company improperly altered condo bylaws to force a buyout and demolition. The state Supreme Court declined to take up the case, effectively siding with 10 owners who refused million-dollar offers and say they want their old homes back, not a bigger check.

Rebuilding the so-called "zombie" tower would cost an estimated $65 million, on top of $150 million in acquisition debt and millions already sunk into demolition, per the Journal. The gut job included removing exterior windows, plumbing, and electrical wiring, leaving what the plaintiffs' lawyer described as a "skeleton," per Realtor.com. Two Roads has filed a fresh suit to terminate the original condo—it's still marketing units in the luxury Edition-branded tower it hoped to build on the site—while the holdouts are now seeking more than $100 million in damages. Beyond one tattered high-rise, the ruling is forcing South Florida developers to rethink teardown strategies for aging waterfront condos. For the full legal and real-estate stakes, read Acosta's piece in full.