Article Courtesy of The South
Florida Business Journal
By Brian Bandell
October 13, 2016
The ground-floor commercial space in the Home Tower
Condominium just off Young Circle in downtown Hollywood has been
targeted for foreclosure.
Miami-based Pacific National Bank filed an amended complaint demanding
foreclosure on Sept. 23 against Hart District Ltd. The lawsuit was filed
in 2012 as a contract and debt complaint, not a foreclosure. The case
was on hold for several years during a loan modification agreement. The
amended complaint claims that Hart District went into default in
September 2015 and owes $5.78 million in principal on the mortgage.
The loan was signed by Gary D. Posner of Aventura, but he was not named
in the complaint. Hart Districtís attorney, Joseph Huss in Fort
Lauderdale, couldnít immediately be reached for comment.
PNB wants to seize four commercial units totaling 36,966 square feet in
the base of the condo building at 1720 Harrison Street. It was built in
1964. However, the space now belongs to the Home Towers Condominium
Association after litigation stretching back more than a decade.
In 2003, Hart District acquired the property for $4 million. According
to PNBís complaint, the company planned to renovate the property and put
a charter school there. In 2004, the condo association filed a complaint
against Hart District alleging that the renovations should not be
allowed because the developer didnít secure the 100 percent approval of
condo owners. This resulted in an injunction that same year halting work
on the space.
In 2005 with the litigation unresolved, PNB granted a $6.7 million
mortgage to Hart District for the property. Three years later, an
arbitrator ruled in favor of the condo association that the developerís
work was improper. Hart District was required to restore the common
areas to their original condition and build a sprinkler system for the
building. The condo association filed a lien on Hart Districtís units
and then foreclosed on them in 2013 for nonpayment of those liens.
PNBís complaint states that its mortgage is superior to the condo
associationís claim and so it should be awarded ownership of the four
units. Miami attorney David S. Garbett, who represents PNB in the
lawsuit, couldnít immediately be reached for comment.
PNB had $1.74 million in noncurrent loans on June 30. Banks often write
down the value of loans that are placed in noncurrent status.