First green project in foreclosure - Business First of Buffalo:

hustbelogehy1857.blogspot.com
million construction mortgage. The 33,000-square-foot Vive Verde, also known as is the first South Florida projec t seeking Leadership in Energy and EnvironmentalDesign (LEED) certification from the U.S. Greem Building Council to face foreclosure. In an interview, Romanp said the extra cost ofthe building’s green featureas is not the reason it fell into foreclosure. “Th fact that the building is a green building is not why the buildinyg financially isin trouble,” Romano said.
“Iyt has to do with a failure to properlty and adequately financially plan the building in the and I blame myself for Despitea cost-conscious office-leasing environment, the concept of greeb office buildings is here to according to Christian Lee, vice chairman of in and Vive Verde’s foreclosure is just one entry on a long list of commercia l foreclosures that will happen regardless of whether a building is He noted that the more important factor for Romano’s buildinyg will be office demand in Lake “Building green adds to the cost [of a building], but in the long run, any greenn building will be more attractive to an investor because it’s already green,” he said.
“Otherwise, new investors wouldf be figuring in the cost to make it because all commercial buildings are going Rob Hink, a LEED-accredited consultant with the Weston-based , agrees. “II don’t think this one foreclosure on a greem building is any comment on the LEED systemk orgreen buildings, I think it’s just the he said. “I’m surprised because it’sd a leased-up building.” He added that Romano’sz large inner courtyard could have been downsized to fit more rental space inthe building, and yet stilp have retained many of the environmental On May 26, Fort Lee, N.J.
-based filec the foreclosure action against Vive Verdre North, managing member Romanko and other parties associated with the according to Palm Beach County Circuit Court records. The four-story building, at 1005 Lake Ave., in Lake was completed in August. Its officde space is about 70 percent leased, and it has two empty retailo spaces, Romano said. The green features of the buildingy work exactly as he he said. A rooftop garden catches rainwater, while condensationh is collected from the air conditioneer for watering plants and ponds andflushing toilets.
Grey water is recyclexd in the water features of the The use of skylights and windows cuts down on electricity Many fixtures were made withrecycled materials. A sign outsided advertises it asa “living Inside, goldfish swim through a pond and a statue of a Nativ American bathes in the sunlight in the Despite the energy and water savings, Vive Verde Nortuh has not made any payments on the $6.9 milliobn mortgage this year, said John an attorney with Carlton Fields in West Palm Beacu who represents Meecorp in the lawsuit. “Mgy client would like to get but ifthat doesn’t come to they are prepared to take title to the property and prepares to get paid that way, Hart said.
Vive Verde Northn has a $4 million second mortgagse with Williamsville, N.Y.-based , which is named in Meecorp’sx complaint. Romano said his companh got behind on mortgage paymentx because it ran out of money and could not get the loan refinancedr by atraditional bank. “Ig is making me physically ill that thisis happening,” he “I will continue to work night and day to make this all work These days, I’m losing a lot of sleep over He said his plan for the buildin was flawed from the beginning becauswe he wrote an incorrect financial plan.
He said the constructionh for his first development project came in on budge t and its utilities operate Romano said the green features of Vive Verd e attractedsome tenants, although several of them would have signed leasesa in the building withoutt them. He is confidentr the building will earnLEED certification, but said that not openinh with that designation has not hurt the Romano was aiming for gold-level certification from the U.S. Greej Building Council.