WEST PALM BEACH — The development firm seeking to acquire the Portofino South Condominium has extended its offer deadline to Nov. 3. The current offer stands at $295 million, nearly $100 million higher than the initial one made in January.
As owners weigh the proposal, tensions inside the waterfront condominium have escalated. Residents have accused one another of harassment, and the board is investigating an elevator confrontation in which one woman alleges she was attacked by another owner.
The developer wooing the unit owners, BEKO Equities, wants to demolish the 55-year-old building, which is subject to ongoing maintenance assessments, and replace it with a new high-rise. The 12-story building has 140 units.
ups ante for West Palm Beach condo
A recent Florida appellate court ruling in Miami-Dade County strengthened the rights of condo holdouts by preventing developers from lowering owner-approval thresholds contained in a condominium's original governing documents, prompting many buyout efforts to seek backing from at least 95% of owners.
BEKO claims that it already has agreements with more than 60% of the owners.
Opponents say they are being pressured to sell, while supporters of Beko's proposal argue that a small minority should not be allowed to block offers that are two to three times the market value of their units.
The dispute over BEKO's offers has grown increasingly bitter. Supporters of the sale have mounted a recall movement, citing mounting assessments and cost overuns. An elevator modernization project triggered an additional $3.5 million assessment, bringing the total cost of the project to more than $15 million.
“This is real money coming out of people’s retirement accounts and savings," said Jack Buyarski, an owner of a fourth-floor unit. “Some owners are wondering how they’re going to afford another assessment.”
Owners who want to sell say that the building is currently in deplorable condition. A number of laundry rooms are closed, ceiling tiles are exposed, garbage chutes are not operating and air conditioning systems have often failed to run.
As for the dispute becoming increasingly bitter, Greg Greer, the real estate agent representing BEKO, sent a text message to a holdout owner that described the owner as “a self-centered narcissist, a nutcase, and a psychotic witch. I feel sorry for your husband.”
Reached for comment on his text, Greer told The Post it was in response to the recipient, a unit owner, posting on social media an AI-generated image of a decapitated head on a plate that featured BEKO. That post was so inappropriate, Greer said.
The Portofino South complex consists of one-, two-, and three-bedroom units, with balconies facing the Intracoastal Waterway, Palm Beach, and the Atlantic Ocean. Purchase prices vary by size and location.
Melanie Holland is one of those owners who has no interest in selling.
“What the developer does not realize is that many of the owners are already multimillionaires. Their condo is a second and third home,” she said, “and they love it here. Most of the owners have no problem doing what needs to be done to keep it that way. Whatever they want to pay us, we would never be able to find another place with the views we have now.”
As for the building's current condition, Holland said construction work on the elevators and other fire safety projects are things that needed to be done. Once the work is done, owners will see a significant improvement.
"Had BEKO come into play before the projects were undertaken, things would be much different," she said.
Some condo own have views that face Mar-a-Lago, the Palm Beach estate of President Donald Trump. They argue whatever they receive from the buyout will not be anywhere close enough to purchase a unit in a new building with such views.
The Flagler Drive waterfront continues to attract real estate developers in a frenzy to build luxury residences for millions of dollars each. BEKO is also eyeing the nearby 39-unit Flagler Yacht Club.
Owners at the Regency Surf & Racquet Club at 4500 N. Flagler Dr. recently received a $100 million offer for a bulk purchase of the condo's 96 units, said West Palm Beach real estate investor Scott Diament, who owns two units in the complex.
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Condo buyout fight escalating at Portofino South | Exclusive
