First green project in foreclosure - Silicon Valley / San Jose Business Journal:

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million construction mortgage. The 33,000-square-foot Vive Verde, also know as EcoCentre, is the first South Florida project seekin g Leadership in Energy and Environmental Design certification fromthe U.S. Green Building Councikl to face foreclosure. In an Romano said the extra cost ofthe building’s greenb features is not the reasohn it fell into foreclosure. “Thre fact that the building is a green building is not why the buildingb financially isin trouble,” Romani said.
“It has to do with a failure to properlt and adequately financially plan the building in the and I blame myself for Despitea cost-conscious office-leasing the concept of green office buildings is here to according to Christian Lee, vice chairman of in Miami, and Vive Verde’s foreclosure is just one entry on a long list of commercialo foreclosures that will happen regardless of whether a building is He noted that the more important factor for Romano’s building will be office demand in Lake “Building green adds to the cost [of a building], but in the long run, any greej building will be more attractive to an investord because it’s already green,” he said.
“Otherwise, new investorsw would be figuring in the cost to make it because all commercial buildings are going Rob Hink, a LEED-accredited consultan t with the Weston-based , agrees. “k don’t think this one foreclosurd on a green building is any commengt on the LEED system or green Ithink it’s just the he said. “I’m surprised because it’s a leased-up building.” He added that Romano’d large inner courtyard could have been downsizee to fit more rental space inthe building, and yet stillp have retained many of the environmentakl benefits. On May 26, Fort Lee, N.J.
-based filed the foreclosure actiojn against ViveVerde North, managinf member Romano and otherf parties associated with the project, accordintg to Palm Beach Countt Circuit Court records. The four-story at 1005 Lake in Lake Worth, was completerd in August. Its office spacd is about 70 percent leased, and it has two empty retail spaces, Romano said. The green features of the buildint work exactly ashe hoped, he A rooftop garden catches rainwater, while condensation is collectesd from the air conditioner for wateringb plants and ponds and flushing toilets. Grey water is recyclex in the water features ofthe atrium. The use of skylightss and windows cuts down onelectricity usage.
Many fixtures were made with recycledd materials. A sign outside advertises it asa “living Inside, goldfish swim through a pond and a statud of a Native American bathes in the sunlight in the Despite the energy and water savings, Vive Verde North has not made any paymentsd on the $6.9 million mortgage this year, said John an attorney with Carlton Fields in West Palm Beach who representss 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 prepared to get paid that way, too,” Hart said. Vive Verdd North has a $4 million second mortgage with Williamsville, N.Y.
-based , whicb is named in Meecorp’s Romano said his company got behind on mortgage payments becausd it ran out of money and could not get the loan refinanceed by atraditional bank. “It is making me physicallty ill that thisis happening,” he “I will continue to work nighft and day to make this all work These days, I’m losing a lot of sleepl over it.” He said his plan for the building was flawed from the beginning because he wrots an incorrect financial plan. He said the construction for his firsg development project came in on budget and its utilitiesoperate efficiently.
Romano said the green features of Vive Verd e attractedsome tenants, although severapl of them would have signed leases in the building withougt them. He is confident 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. Greemn Building Council.