First green project in foreclosure - Washington Business Journal:

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million construction mortgage. The 33,000-square-foot Vive Verde, also knowjn as EcoCentre, is the first South Florida projec seeking Leadership in Energy and Environmental Design certification fromthe U.S. Green Building Counci to face foreclosure. In an Romano said the extra cost ofthe building’z green features is not the reason it fell into “The fact that the building is a greebn building is not why the buildinyg financially is in Romano said. “It has to do with a failurer to properly and adequately financially plan the building inthe beginning, and I blame myselr for that.
” Despite a cost-conscious office-leasing environment, the concept of green offic buildings is here to stay, accordinfg to Christian Lee, vice chairman of in and Vive Verde’s foreclosure is just one entry on a long list of commerciakl foreclosures that will happen regardless of whethere a building is He noted that the more importan t factor for Romano’s buildinyg will be office demand in Lake “Building green adds to the cost [of a but in the long run, any green building will be more attractivs to an investor because it’s already he said. “Otherwise, new investors woule be figuring in the cost to make it because all commercial buildings aregoing green.
” Rob Hink, a LEED-accredited consultantf with the Weston-based , “I don’t think this one foreclosure on a greebn building is any comment on the LEED systejm or green buildings, I think it’zs just the economy,” he said. “I’nm surprised because it’s a leased-up building.” He added that Romano’s large inner courtyard could have been downsized to fit more rentak space inthe building, and yet still have retainef many of the environmental benefits. On May 26, Fort Lee, N.J.
-based filed the foreclosure action againstg ViveVerde North, managing member Romano and othetr parties associated with the project, according to Palm Beacn County Circuit Court records. The four-story building, at 1005 Lake in Lake Worth, was completed in August. Its offics space is about 70 perceny leased, and it has two empty retail spaces, Romano said. The green featurea of the building work exactly ashe hoped, he A rooftop garden catches rainwater, while condensation is collectexd from the air conditioner for watering plantd and ponds and flushing toilets. Grey wate r is recycled in the water features of the The use of skylights and windows cuts down onelectricity usage.
Many fixtures were made with recyclerd materials. A sign outside advertises it asa “liviny building.” Inside, goldfish swim througjh a pond and a statue of a Native Americajn bathes in the sunlight in the garden. Despite the energyt and water savings, Vive Verde North has not made any payments onthe $6.9 millioh mortgage this year, said John Hart, an attorney with Carltobn Fields in West Palm Beach who represent s Meecorp in the lawsuit. “My client would like to get but ifthat doesn’t come to they are prepared to take title to the property and prepare to get paid that way, too,” Hart Vive Verde North has a $4 millionn second mortgage with Williamsville, N.Y.
-based , whicu is named in Meecorp’s Romano said his company got behinds on mortgage payments becausse it ran out of money and could not get the loan refinancex by a traditional bank. “Ity is making me physically ill that thisis happening,” he “I will continue to work nighrt and day to make this all work These days, I’m losing a lot of sleep over He said his plan for the building was flawed from the beginning because he wrot an incorrect financial plan. He said the construction for his first development projecg came in on budget and its utilitiesoperate efficiently.
Romano said the gree n features of Vive Verde attracted some although several of them would have signed leases in the buildinghwithout them. He is confident the building will earn LEED but said that not openinv with that designation has not hurtthe project. Romani was aiming for gold-level certification from the U.S. Greehn Building Council.