Florida Court Orders Developer to Rebuild $65M Condo After Illegal Bylaw Alterations

A Florida court has ordered a developer to rebuild a $65 million waterfront condominium tower after ruling that the firm illegally altered the building's bylaws to facilitate a redevelopment project. Two Roads Development, the real estate company behind the project, was instructed to restore Miami's Biscayne 21 to its original condition, even though demolition had already begun. The case centers on a legal dispute over the building's governance rules, which the developer changed to lower the threshold for condo termination from 100% owner approval to 80%.

Miami-Dade Judge Thomas Rebull issued his ruling in January 2025, citing improper modifications to the building's bylaws as the basis for the order. Ten unit owners had sued the developer to block the demolition, which was intended to make way for a luxury redevelopment in partnership with Marriott International's Edition Hotels brand. The residents rejected multiple buyout offers from Two Roads, which had acquired most of the property's units in 2022 for $150 million.

Rebuilding Biscayne 21 now is expected to cost approximately $65 million, according to a report by Bank OZK cited by the Wall Street Journal. The developer must restore utilities such as air conditioning and electricity, and return the building to the state it was in when the lawsuit was filed in May 2023. One of the holdout residents, Robert Murphy, who purchased his unit for $272,000 in 2012, remains determined to return to his home. 'I hope to go back there soon,' he said in a recent statement.

Two Roads has been vocal about its position, asserting that the building cannot be feasibly restored to its previous condition due to 'longstanding issues.' The firm filed a separate lawsuit in January 2025, arguing that terminating the condo association would be the 'most responsible and practical path' rather than repairing the structure. However, attorney Glen Waldman, representing the holdout residents, dismissed the developer's legal challenge as a 'last-ditch effort' and a 'non-event.' Waldman emphasized that the building remains in 'excellent shape' and could be reconstructed without significant difficulty.

Despite the court's order, Two Roads continues to push forward with its redevelopment plans, according to the Miami Herald. The firm currently owns 183 of the building's 192 units and is reportedly selling units for the new luxury tower even as the legal battle unfolds. The developer has stated it remains committed to reaching a 'settlement agreement with the remaining holdout owners' to move the project forward. However, if buyouts are eventually agreed upon, the affected homeowners would face challenges in Miami's competitive real estate market, where condo sales rose by 8% year-over-year in 2025, per Miami Realtors.

The case highlights the complex interplay between property rights, redevelopment ambitions, and legal frameworks in high-stakes real estate disputes. As the legal proceedings continue, the fate of Biscayne 21—and the residents who have fought to preserve it—remains uncertain. The court's ruling underscores the importance of adherence to bylaw requirements and the potential consequences of altering governance rules in multi-unit developments.