Nearly six years after work began, One West Palm isn't finished, frustrating area residents who gaze upon the construction zone as well as business leaders who just want to see the complex completed.
Palm Beach Post
Kast Construction is suing Palm Beach billionaire Jeff Greene for more than $4 million in fees the contractor says it is owed on the One West Palm mixed-use complex, which Kast says still isn't finished because of Greene's delays.
The 30-story, twin-tower complex, slated for offices, apartments and hotel rooms, began construction in late 2018 at 550 S. Quadrille Blvd. in West Palm Beach.
The $300 million project was slated to take 36 months to build, with completion initially scheduled for the end of 2021.
But nearly six years after work began, One West Palm still isn't finished, frustrating area residents who gaze upon the construction zone as well as business leaders who just want to see the complex finished.
In a lawsuit filed June 25 in Palm Beach County Circuit Court, Kast blamed Greene for the delays.
The real estate investor "persistently" revised One West Palm's scope and design, long after the contract with Kast was inked; interfered with the project's construction; and withheld approvals and payments, Kast's lawsuit said.
Specifically, more than 80 actions that require Greene's approval remain outstanding, the lawsuit said. The actions are needed to move forward with completion of the project.
Greene also refused to resolve disputes with trade contractors, which caused further delays to the project's schedule, the lawsuit said.
These "arbitrary and capricious" tactics are in contravention of the contract, which required timely decisions and payments, Kast said in the complaint. They also are the "substantial factors" which affected the project's construction, according to the lawsuit.
The lawsuit alleges one count of breach of contract and seeks payment of more than $4 million, including $2.4 million in extra fees for delays that caused construction to exceed the 36-month timetable.
In an interview on Monday, Greene pushed back against Kast's claims.
"We terminated them," Greene said of the West Palm Beach-based general contractor. "I've built 100 buildings, and I've never seen anything like this before."
Greene added: "I don't want to say anything bad, but it's been a mess."
New builder takes over One West Palm
Greene said he has a new construction company on the job: Bluewater Builders of West Palm Beach. The company recently completed renovations of Greene's Tideline Hotel in Palm Beach.
Greene acknowledged that "everybody in the world" can see that One West Palm still requires more work to complete, but he said he hopes to finish the complex later this year or early in 2025.
"It's moving along," Greene said.
Work continues on one tower, which features 328 apartments. The second tower, which is not as far along, will feature 200,000 square feet of office space and 201 hotel rooms.
Kast Chief Executive Michael Neal said the company does not comment on pending litigation.
But in Kast's lawsuit, the company said Greene's actions have nullified the contract, and the general contractor no longer is involved in One West Palm.
Jeff Greene became major West Palm Beach landowner more than a decade ago
Greene is a Palm Beach billionaire whose net worth is listed at $7.5 billion by Forbes.
More than 10 years ago, Greene went on a land-buying spree in West Palm Beach in the wake of the late 2000s recession. Since then, he has developed selected sites.
He bought a former car dealership on South Dixie Highway and turned it into The Greene School, a private school for advanced children. He built two apartment complexes in West Palm Beach and a warehouse complex near Florida's Turnpike.
He also purchased other properties in West Palm Beach, many of them parcels that once were slated for luxury residential condominiums.
One was a 3.3-acre site at 550 N. Quadrille Blvd. that Greene purchased for $10 million in 2014.
In 2016, Greene obtained city approval to construct extra-tall towers on the site in exchange for building office space and hotel rooms. The tall height would allow him to offer unobstructed water views of the Intracoastal Waterway and the Atlantic Ocean.
At a 2019 groundbreaking, Mayor Keith James lauded One West Palm, saying it not only would provided needed office space but also help revitalize the area around the complex.
But when the pandemic hit in March 2020 and work-from-home became the norm, Greene got nervous and halted One West Palm's construction.
Fearing the office and hotel market were deeply impaired, Greene also sought a zoning change that would let him build apartments where offices and hotel rooms had been planned. But the city wouldn't budge on the zoning change, noting office space was a requirement for One West Palm's extra-tall height.
The city urged Greene to be patient.
The towers remained vacant concrete skeletons until December 2020 when construction revved back up amid a surprising pandemic-inspired migration of companies to Florida from crowded, cold climes in the Northeast.
Other real estate developers, including Related Cos. of New York, have benefited from the migration. But with One West Palm still not complete, companies haven't been able to consider the property for lease.
Through the years, Greene has acknowledged the construction's slow pace, which he attributed at times to the pandemic and then to a change in window design and installation.
Greene said he's eager to see the electricity turned on at the complex, which will allow interior work to commence, including the installation of wood floors in parts of the towers.
In addition to offices, apartments and hotel rooms, One West Palm also is expected to feature a number of amenities, including a daycare center, a 34,000-square-foot fitness center with a putting green, an upscale restaurant, and indoor and outdoor tennis courts.
Alexandra Clough is a business writer at The Palm Beach Post. You can reach her at aclough@pbpost.com. X: @acloughpbp. Help support our journalism. Subscribe today.
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