Pembroke Pines Condo Complex in Receivership Now Up for Sale
An embattled Pembroke Pines condo complex, known as Heron Pond, has hit the market as part of its receivership proceedings.
Overview of Heron Pond
Located at 8400 Southwest First Street, Heron Pond consists of 19 two-story lakefront buildings encompassing 304 units. Last August, the complex was evacuated following months of escalating concerns about its structural integrity, prompting the city to issue unsafe structure notices.
Structural Issues and Legal Complications
The condo association has also faced significant challenges, including lawsuits alleging mismanagement by its former board members. In a pivotal decision, Daniel Stermer, the court-appointed receiver overseeing Heron Pond’s finances, recognized that a sale would be the best option. An engineering report revealed considerable deterioration that surpassed previous assessments and repair estimates.
Originally built as apartments in 1988 and converted to condos in 2006, Heron Pond is now on the brink of redevelopment.
Sale Details
A team from Avison Young, led by John Crotty and David Duckworth, alongside Fisher Auction Company, is facilitating the sale. According to Crotty, they are looking for a stalking horse bidder to set the minimum price for the complex, with the auction scheduled for September 25.
Property Specifications
- Total Area: 25 acres
- Zoning: Allows for 321 units and buildings up to eight stories tall (100 feet), based on an analysis by attorney Dennis Mele from Greenspoon Marder.
- Sale Structure: Stermer is working to dissolve the condo association, simplifying the sale for potential buyers interested in redevelopment.
Buyer Considerations and Incentives
Potential buyers should note that they cannot apply Live Local Act incentives to this property, as it is zoned strictly for residential use. Florida’s workforce housing law applies only to areas designated for commercial, industrial, or mixed-use.
Crotty emphasized that the sale proceeds will be equitably distributed to current unit owners based on their ownership percentages, as stipulated in the condo declaration and property records.
Motivations for Buyers
"When I talk to buyers, they’re looking for opportunities where they know there is a truly motivated seller," Crotty said. "The sense of urgency will lead to something getting done."
Ongoing Legal Affairs
In addition to structural issues, several lawsuits have stained the reputation of Heron Pond. Unit owners allege that a secretive entity, Federated Foundation Trust, has acquired around 111 units, with its representative, Peter Patel, allegedly misappropriating association funds. Court filings have revealed that two unit owners accuse Patel of embezzlement.
- Alias Controversy: Some unit owners allege that Patel is using the alias Piyush Viradia, raising questions about his credibility.
- Legal Representation: Craig Oberweger is now representing Viradia/Patel but has declined to comment on the ongoing saga.
Upcoming Hearings
A court hearing set for July 31 will address the receiver’s motion to dissolve the condo governance framework. If a buyer is successfully identified, another hearing regarding the sale is expected on September 29, with closing anticipated by November 3. Should the primary buyer withdraw, the receiver will have the option to consider backup offers.
For more information about residential zoning regulations in Pembroke Pines or insights into Florida’s Live Local Act, visit the respective links.