Auction date set for troubled Pembroke Pines condo complex in receivership

An embattled Pembroke Pines condo complex in receivership hit the market.

Heron Pond, consisting of 19 two-story lakefront buildings with 304 units at 8400 Southwest First Street, was evacuated last August following monthslong concerns over its structural integrity and unsafe structure notices from the city. The condo association also has been mired in lawsuits alleging mismanagement by former board members.

Last year, Daniel Stermer, the court-appointed receiver who’s been overseeing Heron Pond and its financials, decided a sale is the best course of action, after an engineering report found extensive deterioration, exceeding what prior assessments and estimated repair costs had determined. Heron Pond was built in 1988 as apartments, and converted to condos in 2006.

An Avison Young team led by John Crotty and David Duckworth, along with Fisher Auction Company are listing the property for sale. Crotty said his team is seeking a stalking horse bidder that will set the floor price for the complex, and then it will go to auction on Sept. 25. The site is 25 acres.

Stermer is working on terminating the association so that it will be an outright sale of the property, making it easier for a potential buyer to redevelop the site, Crotty said. But the purchase can’t hinge on securing city approvals.

As-of-right zoning allows for 321 units and a building or buildings of up to eight stories tall or 100 feet, whichever is less, according to an analysis of the land completed by Greenspoon Marder attorney Dennis Mele. A developer would have to secure site plan approval and a plat note amendment.

A buyer could not apply Live Local Act incentives to the property because it’s zoned for residential use. Live Local, Florida’s workforce housing law, applies to areas zoned for commercial, industrial, or mixed-use.

Crotty said the sale proceeds will be distributed based on the percentage owned by each unit owner, which is outlined in the condo declaration and property records.

“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.”

In several lawsuits, unit owners have alleged that a secretive entity, Federated Foundation Trust, amassed about 111 units, allowing its point person, Peter Patel, to serve on the board, according to court filings. Two unit owners accused Patel of being “chiefly responsible” for “misappropriating and most likely embezzling association funds,” according to court filings. Heron Pond residents also alleged that Patel is using an alias and his real name is Piyush Viradia, according to interviews of unit owners. A past attorney for Federated denied these allegations last year.

Craig Oberweger, the attorney who started representing Viradia/Patel this month, declined to comment.

The court will hold a hearing on July 31 on the receiver’s motion to collapse the condo form of governance. If a bidder is selected, a hearing on the sale is expected Sept. 29, and the deal would close by Nov. 3. If the would-be buyer fails to close the deal, the receiver can turn to a bidder that made a backup offer.

Pembroke Pines condo complex deemed structurally unsafe to hit the market