H3 Hollywood ordered to auction over unpaid construction lien

General contractor LB Construction was awarded $20.2M in damages last week

Mar.March 02, 2017 06:00 PM

Renderings of H3 Hollywood

Months after halting construction and sales, H3 Hollywood was ordered to foreclosure auction. 

General contractor LB Construction was awarded $20.2 million in damages last week against the developer, Hollywood Station Investments, which includes a $15.8 million construction lien judgment, the South Florida Business Journal reported.

In September, The Real Deal first reported that the developer had run out of money and was stopping construction and sales of the planned 15-story, 247-unit condo development at 2165 Van Buren Street in Hollywood. The project was 60 percent sold at the time to buyers who had put down 50 percent deposits. Three buyers have so far sued the Hollywood Station Investments seeking their deposits.

And 10 companies filed lawsuits against the developer to foreclose on construction liens, in addition to LB Construction, the South Florida Business Journal reported.

Construction hit the 13th floor before the developer, which is managed by Diego Besga of Team Real Estate Management, 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.

The developer could not be reached for comment, but LB Construction told the publication that the company would head to foreclosure judgment if necessary. “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,” the general contractor’s attorney Peter Berlowe said.  [SFBJ]  – Katherine Kallergis

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