A buyer at Amrit Ocean
Resort & Residences was promised peace and happiness when he
purchased his condo at the wellness-oriented beachfront
Singer Island development.
But months after closing on his $1.8 million purchase, David
Stern alleges he is dealing with the opposite. He’s suing
the developer, condo association, board members and the
owner of the ground lease where the property was built.
Stern claims that the developer has illegally maintained
control of the association and failed to turn it over to
unit owners.
He filed a lawsuit against Wellness Resorts, Wellness
Residences, Amrit Ocean Resort II Condominium Association,
Yash Pal Kakkar, and board members James Brown and Reggie
Cooper in Palm Beach County Circuit Court in August. The
defendants have filed motions to dismiss the complaint,
which are typically the initial response to a lawsuit.
Amrit Ocean, at 3100 Ocean Drive in Riviera Beach, is part
of a wave of new condo developments on Singer Island, which
is north of the town of Palm Beach.
The Amrit project has faced a series of delays since it was
first conceived more than 15 years ago.
The developer, an affiliate of Dilip Barot’s Creative Choice
Group, relaunched sales in 2017, a decade after the
Indian-born businessman pulled the plug on the project
during the last condo bust.
Amrit consists of two towers, named Peace (the east
building) and Happiness (the west building). The project
includes a hotel component that the developer operates, and
shared amenities.
The lawsuit points to the Florida statute governing condo
associations, which states that unit owners, other than the
developer, are entitled to elect at least a majority of the
board of directors when any of the following occurs: when
all the units have been completed, some are sold to buyers,
and none of the others have been offered for sale by the
developer, according to the lawsuit, which was filed by
attorneys with Eisinger Law.
The complaint alleges that the developer stopped offering
units for sale in the second tower.
“The actions taken by the developer .. are mere subterfuge
so as to allow the developer to wrongfully and illegally
maintain control over the association,” the complaint
states.
Attorney Lindsey Lehr of Siegfried Rivera, who represents
the developer’s entities, Wellness Resorts and Wellness
Residences, said she and her clients deny the allegations in
the complaint. Lehr filed a motion to dismiss the complaint
on Tuesday.
Since closings began, she said in an email, “the developer
has and continues to offer units for sale in the ordinary
course of business, and turnover has not been triggered.”
Attorneys for the other defendants did not immediately
respond to requests for comment.
The lawsuit also alleges that the developer has failed to
hand over records and pre- and post-turnover assessments.
Stern, who purchased a unit in the Peace tower, told The
Real Deal he is one of about 35 owners who are “very upset”
with the condition of their units and the amenities. He said
the developer has been “slow and/or resistant to address”
punch list items that needed to be addressed upon closing.
“At this point, we believe we’re entitled to the HOA being
turned over to the owners,” Stern said, adding that there
have been issues with rusted fixtures, paint and grout that
the association can address in order to turn Amrit into a
“very high-end property.”
“We want to live in harmony with the developer,” he said.