In a rare action, general contractor LB Construction has won a judgement ordering the stalled H3 Hollywood Condominium project to foreclosure auction because of a massive unpaid construction lien.
LB Construction has been awarded $20.2 million in damages against the developer, Hollywood Station Investments, including a $15.8 million construction lien judgment.
Miami attorney Jill Nexon Berman, who represents Hollywood Station Investments, declined comment, the South Florida Business Journal reported. Hollywood Station Investments is managed by Diego Besga of Team Real Estate Management.
“We are proceeding to foreclosure judgment if necessary,” said attorney Peter Berlowe, who represents LB Construction. “We are hopeful that resolution will be reached before we get that far. We are trying to work with all of the subcontractors and material suppliers to see that they are taken care of to the best of our ability.”
Construction hit the 13th floor before the developer halted construction last fall. It was slated to be completed in January. Prices for units started at $250,000.
An auction has been scheduled for April 25.
In September, Hollywood Station Investments sent a letter to buyers telling them that construction had stopped because “general market conditions have deteriorated.”
South Florida condo sales have declined over the past year. Many experts blame the strong U.S. dollar making it more expensive for foreign investors to buy here. Few domestic buyers are willing or able to put down 50 percent deposits.