Forest Development and Kast Construction are going head-to-head in a legal battle over Nautilus 220 condominiums in Lake Park.
The condo’s developer and builder are suing each other for alleged contract breach, incomplete work and failure to pay millions of dollars owed, The Palm Beach Post reported.
Forest Development filed a lawsuit July 13 in Palm Beach County circuit court, accusing Kast of not completing work and alleging that the builder’s improper supervision of its subcontractors resulted in water damage and unnecessary delays. The lawsuit also claims Kast refused to release liens on sold properties, hindering Forest’s ability to close sales and give buyers clear titles, the outlet said. Forest can withhold payments until the liens are leased, according to the lawsuit.
Two days later, Kast Construction, led by Mike Neal, filed a countersuit, alleging Forest failed to make $11.4 million in monthly progress payments. The suit accused Forest of submitting change orders that Forest later refused to pay. Kast claimed Forest’s revisions and design documents were late and inaccurate, allegedly causing disruptions in workflow and scheduling.
Kast’s suit also names three bank lenders and unidentified condo owners as defendants.
Last month, Kast placed an $11.4 million lien on the condo project for labor, services and materials, The Real Deal previously reported. Forest Development managing partner Peter Baytarian cited disputes over the contract amount, change orders and project delays as reasons for the lien.
Various subcontractors have filed $2.9 million in liens, and at least two condo buyers sued seeking their deposit back.
Nautilus 220 is a two-tower 24-story complex spanning 1.2 million square feet of residential, retail, office and restaurant space. Residences range from $1.4 million to $4.6 million.
Earlier this year, Forest won a bid to develop 12 acres of waterfront at Marina Village in Riviera Beach, beating out The Related Group and Sonnenblick Development. The firm’s $556.1 million development proposal includes a hotel, condo, culinary school and possible convention center.
—Grace McClung
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