A condemned Pembroke Pines complex has been purchased for $20.5 million following a months-long legal battle with a bulk unit owner who challenged the sale, according to federal court records.

Heron Pond Condominium sold to Integra Real Estate — a Miami-based investment and development firm — on July 22, nearly 10 months after a “stalking horse” bid was initiated to pawn off the deteriorating 25-acre complex. Residents were ordered to vacate the 304 units at 8400 SW First St. by city officials in August 2024 due to “significant structural issues” that deemed all units “unsafe for occupancy,” per the City of Pembroke Pines. The condos were built in 1988 as an apartment complex called Runaway Bay, and their disrepair included moisture and termite-related damages as well as internal structural deficiencies from “inadequate design and inadequate construction practices.” A court-appointed receiver — Daniel Stermer, former mayor of Weston — was granted oversight of Heron Pond after unit owners petitioned for one in a 2024 lawsuit in which they also sued over purported mismanagement of the complex’s board of directors.

The Heron Pond Condominium in Pembroke Pines has traded hands

Forgoing repairs, Stermer set on terminating the condominium and placing it for sale, with proceeds split between the unit owners.

 

He was granted the dissolution in August and named Integra as bidder in September, records show, but a pin was put in the sale in December, when the Federated Foundation Trust — which owns over 100 units at Heron Pond — objected to the deal. The trust argued Stermer’s receivership was never “properly authorized” by the complex’s board and that the buyer was excluded from the bidding process.

Judge Rodney Smith, who oversaw the case, ultimately chose to re-open bidding and give the trust six days to come up with the $23.95 million needed to beat Integra’s bid, reported The Real Deal in May 2024.

But when Federated executives admitted they only had $18 to $19 million committed and would need a few days to confirm the rest with investors, the judge chose to approve the Integra sale instead.

“The Purchase and Sale Agreement was negotiated and entered into in good faith and without collusion or fraud of any kind,” Smith wrote in his Jan. 8 order granting the sale.

Federated appealed the order in February, claiming it was denied due process during the January hearing, court records show.

A federal appeals panel ultimately affirmed the sale order to Integra in a March 20 opinion.

What’s next for Heron Pond?

As outlined by state law, Stermer will oversee the distribution of sale funds to unit owners as the designated “termination trustee.”

Proceeds will be sent in the form of a check and should be finalized within the “next several days as the case is closed out,” according to a July 22 notice of Heron Pond’s closing.

Court records show condo owners could be eligible to receive anywhere from $30,000 to $70,000 for their units, give or take post-closing fees such as final tax prorations and other expenses.

“The Termination Trustee sincerely appreciates the patience and cooperation of all Unit Owners and interested parties throughout this process,” Stermer wrote.

“This Closing marks the conclusion of a lengthy proceeding, and it is our hope that this resolution allows each Unit Owner to move forward with certainty and finality.”

As for the 19 two-story buildings that make up Heron Pond and the land it sits on, not much is known of what will become of the abandoned complex.

Integra Real Estate has not responded to the Pembroke Pines News’ request for more information as of July 24.