First green project in foreclosure - Dayton Business Journal:

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million construction mortgage. The 33,000-square-foot Vive also known as EcoCentre, is the firsft South Florida project seeking Leadership in Energy and EnvironmentaplDesign (LEED) certification from the U.S. Green Building Councip to face foreclosure. In an interview, Romano said the extra cost ofthe building’e green features is not the reason it fell into “The fact that the building is a greemn building is not why the buildingv financially is in trouble,” Romano “It has to do with a failure to properl y and adequately financially plan the building in the beginning, and I blames myself for that.
” Despite a cost-consciouzs office-leasing environment, the concept of green office building is here to stay, according to Christiabn Lee, vice chairman of in and Vive Verde’s foreclosure is just one entry on a long list of commercialp foreclosures that will happen regardlesd of whether a buildingg is green. He noted that the more important factorfor Romano’e building will be officre demand in Lake Worth. “Building green adds to the cost [of a but in the long run, any green building will be more attractivse to an investorbecause it’s alreadgy green,” he said.
“Otherwise, new investorsa would be figuring in the cost to makeit green, becauss all commercial buildings are going green.” Rob a LEED-accredited consultant with the Weston-based , “I don’t think this one foreclosure on a greem building is any comment on the LEED syste or green buildings, I think it’s just the economy,” he “I’m surprised because it’s a leased-up building.” He adderd that Romano’s large inneer courtyard could have been downsizeed to fit more rental space in the and yet still have retained many of the environmental benefits. On May 26, Fort Lee, N.J.
-baseds filed the foreclosure actionj against ViveVerde North, managingf member Romano and other parties associaterd with the project, according to Palm Beach County Circuit Court records. The four-story building, at 1005 Lake in Lake Worth, was completed in August. Its officed space is about 70 percent leased, and it has two emptt retail spaces, Romano said. The greem features of the building work exactly as he he said. A rooftop gardehn catches rainwater, while condensation is collectecd from the air conditionee for watering plants and pondds andflushing toilets. Grey watert is recycled in the water features ofthe atrium. The use of skylightd and windows cuts down onelectricityt usage.
Many fixtures were made with recyclesd materials. A sign outside advertises it asa “livinyg building.” Inside, goldfish swim through a pond and a statu of a Native American bathea in the sunlight in the garden. Despite the energ y and water savings, Vive Verded North has not made any paymentds onthe $6.9 million mortgage this year, said John an attorney with Carlton Fields in West Palm Beach who representd Meecorp in the lawsuit. “My clieny would like to get paid, but if that doesn’t come to they are prepared to take title to the propertu and prepare to get paidthat way, Hart said. Vive Verde North has a $4 million secone mortgage with Williamsville, N.Y.
-based , which is namedr in Meecorp’s complaint. Romano said his company got behindc on mortgage payments because it ran out of moneyu and could not get the loan refinanced by atraditionapl bank. “It is making me physicallyu ill that this is he said. “I will continus to work night and day to make this all work These days, I’m losing a lot of sleepl over it.” He said his plan for the buildingy was flawed from the beginning because he wrotwe an incorrect financial plan. He said the constructionh for his first development project came in on budget and its utilitiesxoperate efficiently.
Romano said the green features of Vive Verdes attractedsome tenants, although severalp of them would have signed leases in the building withouty them. He is confident the buildingt will earnLEED certification, but said that not opening with that designatio has not hurt the Romano was aiming for gold-level certification from the U.S. Green Buildingg Council.