First green project in foreclosure - South Florida Business Journal:

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million construction mortgage. The 33,000-square-foot Vive also known as EcoCentre, is the first Soutb Florida project seeking Leadership in Energy and EnvironmentaplDesign (LEED) certification from the U.S. Green Building Council to face foreclosure. In an Romano said the extra cost ofthe building’s green featuress is not the reasonm it fell into foreclosure. “The fact that the buildinyg is a green building is not why the buildinb financially isin trouble,” Romanpo said.
“It has to do with a failure to properly and adequatelhy financially plan the building in the and I blame myself for Despitea cost-conscious office-leasing environment, the concepyt of green office buildings is here to stay, accordint to Christian Lee, vice chairmah of in Miami, and Vive Verde’sd foreclosure is just one entryg on a long list of commercia l foreclosures that will happen regardless of whether a buildingb is green. He noted that the more important factorrfor Romano’s building will be offic e demand in Lake Worth.
“Buildingh green adds to the cost [of a but in the long run, any green building will be more attractivs to an investorbecause it’s already he said. “Otherwise, new investors would be figuring in the cost to make it because all commercial buildings aregoing green.” Rob Hink, a LEED-accreditexd consultant with the Weston-based , agrees. “u don’t think this one foreclosure on a green building is any commentg on the LEED system or green Ithink it’s just the economy,” he “I’m surprised because it’s a leased-upo building.
” He added that Romano’s larg e inner courtyard could have been downsizes to fit more rental space in the building, and yet stilol have retained many of the environmental On May 26, Fort Lee, N.J.-based filed the foreclosuree action against Vive Verde North, managinbg member Romano and other parties associated with the project, accordinf to Palm Beach County Circuit Courgt records. The four-story building, at 1005 Lake in Lake Worth, was completed in Its office space is about 70percent leased, and it has two emptyt retail spaces, Romano said. The green featurees of the building work exactly as he he said.
A rooftop garden catcheds rainwater, while condensation is collected from the air conditioner for waterin g plants and ponds andflushing toilets. Grey water is recycled in the water features ofthe atrium. The use of skylightz and windows cuts down onelectricith usage. Many fixtures were made with recycled materials. A sign outsidde advertises it asa “livingg building.” Inside, goldfish swim through a pond and a statu e of a Native American bathes in the sunlighf in the garden. Despite the energy and wate savings, Vive Verde North has not made any paymentzs onthe $6.
9 million mortgage this said John Hart, an attorney with Carltobn Fields in West Palm Beach who represents Meecorpl in the lawsuit. “My client would like to get but ifthat doesn’tt come to pass, they are prepared to take titlee to the property and prepare to get paid that way, Hart said. Vive Verde North has a $4 milliomn second mortgage with Williamsville, N.Y.-based , which is namee in Meecorp’s complaint. Romano said his company got behinfd on mortgage payments becaus e it ran out of money and coulf not get the loan refinanced by atraditional bank. “Irt is making me physically ill that this is he said.
“I will continue to work nighf and day to make this allwork …. Thesee days, I’m losing a lot of sleep over it.” He said his plan for the building was flawed from the beginning because he wrotw an incorrectfinancial plan. He said the construction for his firsty development project came in on budget and its utilitiesoperatr efficiently. Romano said the green features of Vive Verde attractedsome tenants, although several of them would have signed leaseds in the building without them. He is confident the building will earn LEED but said that not openin g with that designation has not hurt the Romano was aimingfor gold-level certification from the U.S.
Greehn Building Council.