Power developer Al Adelson is courting the aging Portofino waterfront condominium in West Palm Beach with a $150 million offer that some owners call a life-changing windfall and others an unwanted eviction.

Adelson, who built the ultra-luxury Bristol condominium on the city’s Intracoastal Waterway, has touted Portofino’s North Flagler Drive location because it also sits directly on the water and could be razed and rebuilt to give more units ocean views.

But owners in the 56-year-old building are at odds. Both sides are hoping to sway the other with casual hallway chats, and formal in-depth white papers on the pros of taking the money, or refusing the sale knowing pricey repairs are pending. One analysis was from a group of owners called "The committee to stay and pay." “For some people it’s a second or third home. For other people, it’s their only home,” said Portofino owner Cynthia Witter, who is undecided about a sale. “This is a very peaceful place, and it’s turned into a lot of pressure for people and a lot of fighting over money.” And there is a caveat. According to owners interviewed for this story and documents reviewed by The Palm Beach Post, Adelson also wants La Fontana, a similarly designed building directly north of Portofino, whose owners are more keen on selling for the same $150 million price. The deal will only go through if both buildings agree to sell, providing Adelson a 5.5-acre waterfront footprint. Another stipulation: He'll only pay if he can get zoning for a 25-story building at site. If Portofino declines the offer, La Fontana plans to try and sell on its own, which could reduce future bids for Portofino, a Jan. 20 email to residents from the president said. At the Portofino, divided equally, the $150 million would mean about $1.2 million for each owner. But water views should be worth more than views of the parking lot, and three-bedroom units should bring a bigger boon than studios, owners argue.

The Bristol: The priciest and most luxurious condo ever built in Palm Beach County.

Also, about 30% of the 125 units are homesteaded, meaning the owners consider them their permanent residences. Some of those owners are anxious about where they will go and concerned about what they can afford in the current market.

 

“It can be a very sad situation if you have a community of people that have been stable and working together for the betterment of everyone which is suddenly divided,” said Michael Gelfand, a West Palm Beach attorney who specializes in real estate and association law.

   

A majority of Portofino residents, 92 in all, said in an informal survey completed in January that they wanted to take the next step in discussing a sale to Adelson. That includes creating a sale advisory committee to look for a law firm to represent Portofino and work with owners on how best to divide the $150 million, according to a Jan. 16 note to owners from the condo association president. “Time is of the essence, and we must act swiftly but carefully,” the note said. Portofino, at 2600 North Flagler Drive, is among a handful of West Palm Beach condominiums that are facing similar conundrums as their buildings age and developers clamor for waterfront property. In a one-block area of Flagler Drive south of downtown West Palm Beach, owners at the 1960s-era Flagler House condominium agreed to sell — some reluctantly — to developers who want to build an 18-story luxury condominium, and owners at the Southbridge Condominium are being solicited by two developers to sell their units on terms not everyone likes.

Portofino condominium at 2600 North Flagler Drive, West Palm Beach.

 

Condo buyouts can be a lifesaver for owners of older units who are facing significant costs under new safety laws passed following the Surfside condominium collapse in 2021. The law also requires that money be set aside in reserves and safety inspections completed.

Portofino passed its so-called milestone inspection with no structural concerns, but costs to maintain an older building can still be daunting.

Chris Aumente, who owns a 450-square-foot studio apartment at the Portofino on North Flagler, is eager to sell to Adelson. He said he’s paying $600 a month in assessments and fees that included costs for concrete restoration and new elevators.

A new roof is underway, there are potential repairs to the seawall and Portofino still needs to install a mandated fire sprinkler system or “engineered life safety system” required by law, Aumente said.

“I think this is the most fortuitous opportunity of these peoples’ lives. There is a contingent that thinks they can get more, and that is laughable,” said Aumente, who is also a real estate agent. “How are people who want to stay going to be received when you’re all sitting around the pool facing a $25,000 assessment?”

Witter, who also owns a unit in La Fontana, said recent projects at Portofino have had pricey overruns requiring people to come up with big chunks of money in shortened time periods.

She’s also worried about the $35.5 million refurbishment of Currie Park, and whether it will be a “Coney Island” or “Central Park.” Portofino is directly north of Currie Park.

“People buy a condominium, and you really don’t know what the rest of the community is like, and now you’re shoved into a situation where you have to make a decision that affects everyone’s lives,” Witter said.

So residents are keeping tallies of yay and nay votes. To terminate a condominium, it must be approved by 80% of unit owners, but if 5% or more vote no, it can block the sale and another vote can’t happen for two years.

Aumente said he counts 14 people (11%) who are against a sale.

Laurence and Iris Gardner, who don’t want to sell, said their informal survey of no votes is up to 32 residents, or 25%.

The Gardners bought their waterfront three-bedroom unit with views of the Intracoastal from every room in 2018. They said they can’t afford something comparable at today’s prices.

“West Palm Beach is really exploding and there are a lot of rich people moving here,” Iris Gardner said. “We are not rich, but we have been able to live here so far, and we would like to stay.”