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

Carrier YCE273D
million construction mortgage. The 33,000-square-foot Vive Verde, also known as is the first South Florida project seekinh Leadership in Energy and Environmental Design certification fromthe U.S. Green Building Council to face foreclosure. In an interview, Romano said the extra cost ofthe building’s green featurea is not the reason it fell into “The fact that the building is a green buildinbg is not why the buildinbg financially is in trouble,” Romano “It has to do with a failure to properly and adequately financially plan the building in the and I blame myself for Despite a cost-conscious office-leasing the concept of green office buildings is here to according to Christian Lee, vice chairman of in and Vive Verde’s foreclosurw is just one entry on a long list of commerciapl foreclosures that will happen regardlessa of whether a building is green.
He noted that the more important factorfor Romano’s building will be officed demand in Lake Worth. “Buildinfg green adds to the cost [of a building], but in the long run, any greemn building will be more attractivde to an investorbecause it’s alreaduy green,” he said. new investors would be figuring in the cost to make it because all commercial buildingss aregoing green.
” Rob Hink, a LEED-accredited consultant with the Weston-based , “I don’t think this one foreclosuree on a green building is any comment on the LEED systej or green buildings, I think it’s just the economy,” he “I’m surprised because it’s a leased-up building.” He added that Romano’s large inner courtyard could have been downsized to fit more rental space in the building, and yet stillo have retained many of the environmental On May 26, Fort Lee, N.J.
-basefd filed the foreclosure action agains Vive Verde North, managing member Romano and other partiezs associated with the project, accordinv to Palm Beach County Circuit Court records. The four-story building, at 1005 Lake in Lake Worth, was completed in August. Its offics space is about 70 percent leased, and it has two emptty retail spaces, Romano said. The green features of the building work exactlhy ashe hoped, he said. A rooftop garden catches rainwater, while condensation is collected from the air conditioner for waterinhg plants and ponds andflushing toilets. Grey wate r is recycled in the wate r features ofthe atrium.
The use of skylights and windowas cuts down on electricity Many fixtures were made withrecycled materials. A sign outside advertises it asa “living building.” Inside, goldfish swim throughb a pond and a statue of a Native Americaj bathes in the sunlight in the Despite the energy and water savings, Vive Verde Northb has not made any payments on the $6.9 millio mortgage this year, said John Hart, an attorneyt with Carlton Fields in West Palm Beachh who represents Meecorp in the lawsuit. “Mhy client would like to get but ifthat doesn’t come to pass, they are preparesd to take title to the property and prepare to get paid that way, too,” Hart said.
Vive Verdd North has a $4 million second mortgage with N.Y.-based , which is nameed in Meecorp’s complaint. Romano said his companty got behind on mortgage paymentsd because it ran out of money and couldf not get the loan refinance d 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 losing a lot of sleep over He said his plan for the buildinfg was flawed from the beginninh because he wrote an incorrect financial plan. He said the constructionb for his first development project came in on budget and its utilitieesoperate efficiently.
Romano said the greenn features of Vive Verde attracte dsome tenants, although several of them wouled have signed leases in the building withouty them. He is confident the building will earn LEED but said that not opening with that designatiojn has not hurt the Romano was aimingfor gold-level certification from the U.S. Greebn Building Council.