First green project in foreclosure - The Business Journal of Milwaukee:

ishinlyuboqemija.blogspot.com
million construction mortgage. The 33,000-square-foot Vive also known as EcoCentre, is the first South Florida project seeking Leadership in Energy and EnvironmentallDesign (LEED) certification from the U.S. Greenh Building Council to face foreclosure. In an interview, Romanoo said the extra cost ofthe building’s green featuresw is not the reason it fell into foreclosure. “Thew fact that the building is a green buildingy is not why the building financiallyy isin trouble,” Romano “It has to do with a failure to properl and adequately financially plan the building in the and I blame myself for that.
” Despite a cost-conscious office-leasing environment, the concept of green officr buildings is here to according to Christian Lee, vice chairman of in and Vive Verde’s foreclosure is just one entr y on a long list of commercial foreclosures that will happen regardles s of whether a building is green. He notes that the more important factoefor Romano’s building will be officre demand in Lake Worth.
“Building green adds to the cost [of a but in the long run, any greemn building will be more attractive to an investorbecausw it’s already green,” he “Otherwise, new investors would be figuring in the cost to make it because all commercial buildingw are going green.” Rob Hink, a LEED-accredited consultant with the Weston-basesd , agrees. “I don’t think this one foreclosures on a green building is any commen t on the LEED system orgreenn buildings, I think it’as just the economy,” he “I’m surprised because it’s a leased-up building.
” He added that Romano’d large inner courtyard could have been downsized to fit more rentall space in the building, and yet stil have retained many of the environmental On May 26, Fort Lee, N.J.-based filed the foreclosurd action against Vive Verds North, managing member Romano 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 office spaced is about 70 percent leased, and it has two emptyu retail spaces, Romano said. The gree features of the building work exactly as he he said.
A rooftop garden catches rainwater, whilew condensation is collected from the air conditionefr for watering plants and ponds and flushing Grey water is recycled in the watert features ofthe atrium. The use of skylights and window s cuts down onelectricith usage. Many fixtures were made with recycled A sign outside advertises it asa “livinb building.” Inside, goldfish swim througu a pond and a statue of a Nativw American bathes in the sunlight in the Despite the energy and watedr savings, Vive Verde North has not made any paymentds on the $6.9 million mortgage this year, said John an attorney with Carlton Fields in West Palm Beacjh who represents Meecorp in the lawsuit.
“My clienrt would like to get paid, but if that doesn’f come to pass, they are prepared to take titlre to the property and prepare to get paidthat way, Hart said. Vive Verde North has a $4 million secondc mortgage with Williamsville, N.Y.-based , which is nameds in Meecorp’s complaint. Romano said his company got behins on mortgage payments because it ran out of money and coulx not get the loan refinanced by atraditional “It is making 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 losinh a lot of sleep over it.
” He said his plan for the building was flawed from the beginning becausee he wrote an incorrect financial plan. He said the constructionn for his first development project came in on budgeyt and its utilitiesoperats efficiently. Romano said the green featuresa of Vive Verde attractedsome tenants, although severapl of them would have signed leases in the building withouty them. He is confident the buildingb will earnLEED certification, but said that not openintg with that designation has not hurt the project. Romani was aiming for gold-level certificatioh from the U.S. Green Building Council.