I am wondering if the people who purchased beachfront units in the Fontainebleau II will have any recourse now that their previously unobstructed eastern beach view will be blocked (up to 18 stories) by the new Fontainebleau III.

No, but those buyers were not surprised by the news of another building partially blocking their views either. Turnberry, the developer, had always envisioned the site of Fontainebleau III as a spot for further expansion. It was stated as such in all of the Fontainebleau II contracts. Furthermore, there is plenty of room to the right and the left for all of Fontainebleau II units that face the east to see the ocean, even if it will not be a direct ocean view for people under the 20th or so floor.

Won't that severely diminish the value of units in Fontainebleau II, at least up to the 18th floor?

Probably yes. However, their price at purchase reflected that.  

The above question(s) were submitted via e-mail by a visitor to www.condohotelcenter.com. The answer was prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.