Integra Investments’ purchase of a condemned Pembroke Pines condo complex for $20.5 million is poised to proceed, after a judge shot down a bulk unit owner’s challenge of the sale process.
It marks the latest chapter for the embattled 304-unit Heron Pond, a lakefront community with 19 two-story beige buildings. It’s now vacant after authorities ordered all residents to evacuate in the summer of 2024 due to structural safety concerns.
The property, which sits on more than 25 acres at 8400 Southwest First Street, was built in 1988. It has been grappling with disrepair for years. In 2024, the court sided with unit owners who sued over mismanagement by the board and sought the appointment of a receiver to oversee Heron Pond’s affairs.
Court-appointed receiver Daniel Stermer determined a sale is the best option, arguing repairs would be costly and a sale would generate proceeds for unit owners. An affiliate of Miami-based Integra Investments –– led by principals Paulo Tavares de Melo, Nelson Stabile, Victor Ballesta and Cory Yeffet –– submitted the stalking horse bid for $20.5 million last summer.
But Federated Foundation Trust opposed the deal. The trust owns more than 100 units at Heron Pond and was accused by some residents of allowing the disrepair, as Federated-tied individuals served on the board of directors.
Federated argued it was unfairly excluded from the bidding process, according to court filings. Stermer and his team of attorneys have argued Federated’s bid for Heron Pond didn’t meet qualifications.
Things came to a head at a Jan. 7 federal court hearing over whether the sale process should be reopened to give Federated an opportunity to beat Integra’s bid.
Federated “had ample opportunity to provide the necessary information to demonstrate that they were a qualified bidder. They waited until the day before –– the deadline to submit their qualifications, and they didn’t have it,” said Brian Rich, attorney for receiver Stermer, according to a transcript of the hearing.
Federated’s application lacked records showing it could close a deal, and Stermer allowed it to go beyond the court-imposed deadline, but the trust still failed to provide the records, Rich said. Its application was missing bank statements, escrow confirmations or other proof of available funds, Michael Niles, another attorney for the receiver, said in the hearing.
In a December filing, Federated had argued that the receiver’s sale process lacked appraisals and market analyses, and said it was “excluded” from bidding. Its issue isn’t the sale itself but the process, Federated had said in court.
Federated’s attorney Craig Oberweger doubled down on this point during the January hearing.
Federated’s exclusion “undermines the integrity of the sale and the interests of the unit owners,” Oberweger said in court. “By limiting competition, the process fails to maximize the monies that unit owners could receive.”
Ultimately, Smith said he would re-open bidding and give Federated six days to come up with the funds for a $23.95 million purchase in order to beat Integra’s bid, the transcript shows. But when Piyush Viradia Patel, who leads Federated, told the judge over the phone that he has $18 million to $19 million “committed,” and that he would like a few days “to confirm,” with investors on the rest, the judge wasn’t having it.
He approved the sale to Integra on Jan. 8 and addressed Federated’s allegation that Stermer and his team’s bidding process “may have favored Integra over other bidders,” and may have conducted the sale in a way “designed for the benefit of Integra.”
The sale “was negotiated and entered into in good faith and without collusion or fraud of any kind,” Smith wrote in his order.
Federated appealed the order and lost. A federal appeals panel issued a unanimous opinion Friday against the trust and affirming Smith’s order. The appeals court shot down Stermer’s motion to impose sanctions on Federated.
The trust is now evaluating its options, Solomon Radner, an attorney for Federated, said in a statement.
“Federated believes it will lose millions through this receivership process,” Radner said.
Stermer said now he’ll move “swiftly” to close the sale to Integra.
This isn’t the first time Federated has come up in Heron Pond litigation.
James Rhodes, the association’s former president who initially requested receivership in 2024, alleged in a past court filing that individuals tied to the trust had a majority on the board of directors and then mismanaged the complex, allegedly so Federated could “acquire more units … at a reduced/discounted cost,” Rhodes wrote in the court filing.
Federated “unequivocally and expressly denies” this allegation, Radner said.
Integra didn’t provide comment, including on its planned project.
Zoning allows 321 units in several buildings up to eight stories or 100 feet, whichever is less.
According to court records, 18 unit owners will be in the red, with the disbursements from the sale to Integra falling short of their mortgage balances.
For eight of those units, which have Freddie Mac and Fannie Mae loans, Integra is responsible to pay off the balance of the debt even if it means ponying up more than its $20.5 million purchase price. This deal was hammered out separately last year among Integra, the agencies and Stermer.
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Residential
South Florida
Condo owners opposing sale of Pembroke Pines’ Heron Pond complex lose first court fight