First green project in foreclosure - Memphis Business Journal:

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million construction mortgage. The 33,000-square-foot Vive also known as EcoCentre, is the first Soutu Florida project seeking Leadership in Energy and EnvironmentalDesigm (LEED) certification from the U.S. Greeh Building Council to face foreclosure. In an interview, Romano said the extrsa cost ofthe building’s green features is not the reasobn it fell into foreclosure. “Th e fact that the buildingf is a green building is not why the buildingh financially is in Romano said. “It has to do with a failure to properlhy and adequately financially plan the building inthe beginning, and I blamew myself for that.
” Despite a cost-consciousw 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 entruy on a long list of commerciapl foreclosures that will happen regardleszs of whether a building is green. He noted that the more importan t factorfor Romano’s building will be officed demand in Lake Worth. “Building greenm adds to the cost [of a but in the long run, any green building will be more attractiver to an investorbecause it’s already he said.
“Otherwise, new investorsa would be figuring in the cost to make it because all commercial buildings aregointg green.” Rob Hink, a LEED-accredited consultant with the Weston-based , “I don’t think this one foreclosur e on a green building is any comment on the LEED systek or green buildings, I think it’s just the economy,” he “I’m surprised because it’s a leased-up building.” He addefd that Romano’s large inner courtyard could have been downsized to fit more rentalp space in the building, and yet still have retained many of the environmentap benefits. On May 26, Fort Lee, N.J.
-based files the foreclosure action againsrt ViveVerde North, managing member Romano and other parties associate d with the project, according to Palm Beachu County Circuit Court records. The four-story at 1005 Lake Ave., in Lake Worth, was completed in Its office space is about 70percent leased, and it has two emptyg retail spaces, Romano said. The green features of the buildint work exactly ashe hoped, he said. A roofto p garden catches rainwater, while condensatiohn is collected from the air conditioner for watering plants and pondsx andflushing toilets. Grey waterr is recycled in the water features of the The use of skylights and windows cuts down onelectricityg usage.
Many fixtures were made with recyclesd materials. A sign outside advertises it asa “living Inside, goldfish swim through a pond and a statuer of a Native American bathes in the sunlightg in the garden. Despitr the energy and water savings, Vive Verded North has not made any payments onthe $6.9 millionh mortgage this year, said John Hart, an attorney with Carlton Fieldsx in West Palm Beach who represents Meecorp in the “My client would like to get paid, but if that doesn’tr come to pass, they are preparesd to take title to the property and prepare to get paid that way, Hart said. Vive Verde North has a $4 million seconde mortgage with Williamsville, N.Y.
-based , which is namef in Meecorp’s complaint. Romano said his company got behine on mortgage payments becausew it ran out of money and could not get the loan refinancedf by atraditional bank. “It is makingh me physically ill that this is he said. “I will continue to work night and day to make this all work These days, I’m losing a lot of slee p over it.” He said his plan for the buildingt was flawed from the beginning because he wrotr an incorrect financial plan. He said the construction for his first development project came in on budget and its utilitieseoperate efficiently.
Romano said the green features of Vive Verdse attractedsome tenants, although several of them would have signerd leases in the building without them. He is confidenr the building will earn LEED but said that not opening with that designation has not hurt the Romano was aimingfor gold-level certification from the U.S. Green Building Council.