One Flagler Faces Foreclosure

One Flagler Faces Foreclosure: "One Flagler Building
MIAMI-The South Florida Business Journal reports Mellon United National Bank, a subsidiary of Bank of New York Mellon, filed foreclosure against the 142,343-square-foot One Flagler office building. The action comes less than four years after Nexus Development Group bought the building to renovate it and sell as office condos.
The article noted that Mellon United filed a notice of foreclosure last month against Nexus Development. The developer owes just under $33 million on the asset at 14 NE First Ave. and hasn't made payments since January 10, according to the complaint. A working phone number and e-mail address for Nexus Development could not be found, and Mellon United's attorney Mark Dikeman could not be reached for comment.
Locally based Nexus Development bought the 14-story One Flagler, formerly known as the Israeli Discount Building, in December 2005, Nexus Development paid $20 million for the asset, which was then around 50% occupied, and had plans to convert the more than 50-year-old building into office condominiums.
Sources talking to GlobeSt.com at the time felt the office market would continue to tighten and market fundamentals would improve, thus making office condos a viable real estate product. In September 2007, Nexus Development secured the $30 million loan from Mellon United for acquisition and conversion costs, anticipating the renovation would be completed by fall 2008."