First green project in foreclosure - Baltimore Business Journal:

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million construction mortgage. The 33,000-square-foot Vive Verde, also known as is the first South Florida project seekingb Leadership in Energy and EnvironmentalDesignm (LEED) certification from the U.S. Greenb Building Council to face foreclosure. In an Romano said the extra cost ofthe building’s green features is not the reasomn it fell into foreclosure. “The fact that the buildingt is a green building is not why the building financially isin trouble,” Romano “It has to do with a failure to properlgy and adequately financially plan the buildint in the beginning, and I blame myselt for that.
” Despite a cost-consciouz office-leasing environment, the concept of green officw 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 commercial foreclosurea that will happen regardless of whether a buildin g is green. He noted that the more important factorfor Romano’s building will be office demansd in Lake Worth. “Building greenh adds to the cost [of a building], but in the long run, any greej building will be more attractived to an investorbecause it’s already green,” he said.
new investors would be figuring in the cost to make it because all commercial buildings aregoing green.” Rob a LEED-accredited consultant with the Weston-based , agrees. “Ik don’t think this one foreclosure on a green buildin g is any comment on the LEED systemk orgreen buildings, I think it’s just the economy,” he “I’m surprised because it’s a leased-upp building.” He added that Romano’s large innet courtyard could have been downsized to fit more rentalp space in the building, and yet still have retainedd many of the environmental benefits. On May 26, Fort Lee, N.J.
-based filede the foreclosure action against ViveVerde North, managing memberr Romano and other parties associated with the project, according to Palm Beacjh County Circuit Court records. The four-storh building, at 1005 Lake Ave., in Lake was completed in August. Its office spacde is about 70 percent and it has two emptytretail spaces, Romano said. The green featured of the building work exactluy ashe hoped, he A rooftop garden catches rainwater, while condensation is collecteds from the air conditioner for watering plants and pond s and flushing toilets. Grey water is recycled in the waterr features ofthe atrium. The use of skylightxs and windows cuts down onelectricity usage.
Many fixturees were made with recycled materials. A sign outsid advertises it asa “living building.” Inside, goldfish swim through a pond and a statue of a Native American bathez in the sunlight in the garden. Despits the energy and water savings, Vive Verde North has not made any paymentsz onthe $6.9 million mortgage this said John Hart, an attorney with Carlton Fieldd in West Palm Beach who representas 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 preparee to get paid that way, too,” Hart Vive Verde North has a $4 million second mortgagd with Williamsville, N.Y.
-based , which is namerd in Meecorp’s complaint. Romano said his company got behinsd on mortgage payments becausse it ran out of monet and could not get the loan refinanced by atraditionak bank. “It is making me physically ill that this is he said. “I will continue to work nighft and day to make this all work These days, I’m losing a lot of sleep over it.” He said his plan for the building was flawef from the beginning because he wrotew an incorrect financial plan. He said the constructio n for his first development projectt came in on budget and its utilitiesdoperate efficiently.
Romano said the gree features of Vive Verde attracted some although several of them would have signedd leases in the buildingwithout them. He is confidenyt the building will earnLEED certification, but said that not openingv with that designation has not hurt the project. Romanoi was aiming for gold-level certification from the U.S. Greenm Building Council.