A guy named Evan left a comment on this blog and dropped me an email over the weekend. He bought a 1 bedroom/1 bath (D floor plan) with 962 square feet of interior space and a 204 square foot balcony on the eighth floor at Cynergi. He went into contract on his unit in June of 2005 and is looking to find a buyer to take over his contract. The price that he locked into was $380,000 but he is willing to accept $360,000 to get out. His unit comes with a $10,000 upgrade package, a full granite backsplash, washer/dryer and one parking space. The following are the prices that the sales agent working for the Cynergi developer quoted him in March 2007 for other D units in the building:
2nd floor – $425,000
3rd floor – $430,000
6th floor – $450,000
7th floor – $460,000
8th floor – $470,000
My reaction was holy crap! Those are unrealistic prices! I dug through some of the old price lists that I still have for Cynergi to see what those units were listed for a year or two ago. I used to get regular pricing updates emailed to me by a few of the sales agents who worked for Cynergi. I found a price list dated February 6, 2006. It has D units priced from $395,000 (2nd floor) to $425,000 (8th floor). Looks like Evan did get in pretty early. I still think that the prices are high even at $360,000 but I figured that I would post his situation on here in case someone knows somebody out there who is looking to buy a unit at Cynergi. Maybe they can help each other out.
Also, I’ve heard rumors that the developer of Cynergi is thinking about downgrading the kitchens and bathrooms on the remaining unsold units to cut back on costs. Does anybody out there know if there is any truth to this? It makes sense to me since it will be nearly impossible for them to sell those one bedroom units priced in the $400K’s.
The picture slideshow below will show you the floor plan for a D unit. It will also show you the kitchen and bathroom as they should be delivered to contract holders. I took these pictures a while ago when the model showroom still existed.
If anyone else out there is looking to get out of their contract to purchase a Miami preconstruction condo before they close, feel free to send me an email or drop a comment describing your scenario. Later this week I’ll discuss 10 condo units that are up for grabs at Midtown 4 They were purchased by an investment group when sales first launched. The group is looking to sell the condos for exactly what they paid. I will post that story once I get all the details from a member of the investment group that I met this past weekend.
Update: Evan has reduced the price of his one bedroom unit at Cynergi to $345,000. He will consider all offers.
I have lowered my asking price to $345,000, which I feel offers any buyer a good cushion given current market conditions. I will consider all offers
as I’m trying to liquidate all my investments in florida.
Well guys, I rather remain anonimus for now. I know the developer and they are running out of money. There are still approx. 30 unsold units plus the one that will not close. I am a real estate appraiser and have purchased a unit in Cynergi. I have confirmation from other reliable sources that the developer is putting very cheap finishes in the baths and kitchen essentially reducing the value of the entire building. It is a fact that the developer will try to sell the remaining units to an investor (volture funds) at substantial discount. When I bought the unit in July 2005, I went to the sales center and purchased the unit based on the finishes that were exhibited in the model. The unfortunate thing is that I did not make sure that those finishes were stated in the sales contract. About 2 months ago I was contacted by the developer to choose the upgrade package. I was told that if I wanted the “nice” kitchen and bath, I would have to pay for this upgrade. I believ we have been duped and I am trying to organize a lawsuit to get our deposit back. I can assure you that the prices we have paid in 2005 are a thing of the past and that today we probably can expect a 20% value reduction. I am strongly considering walking out of this deal unless we can succesfully get our deposit back.
Thank you for your input. It sounds like you have a strong case for a class action lawsuit. A few months ago I heard about the developer downgrading the kitchens and bathrooms in the project. However, I thought that they were only downgrading the units for those that were unsold. This is news to me. Thank you very much for your contribution.
John dow, I too am a buyer at Cynergi and I can confirm 100% that the developer has downgraded the finishes in the units. I was also told to come in to pick out my upgrades and when I saw them I said those aren’t upgrades those are the standard finishes. I was then told all finishes in the showroom were upgrades to which I replied no they’re standard. We went back and forth and the representative for the developer said the sales people should have never said they were standard and the finishes aren’t stated in writing or the contract. Luckily I had pictures to prove the finishes and emails from the sales people stating there were no upgrades being offered other than the glass tile backsplash and possible sound system upgrade. The developer even changed the tiles in the bathroom from railroad style to ugly tan square tiles. Also the developer wanted to charge $20k for an assigned parking spot. Luckily I called them on it because the contract specifically states a parking spot will be assigned prior to closing. Lastly the contract states the developer can back out of the deal if the unit didn’t close after 2 yrs of signing the contract. Now I know the developer won’t envoke that option because of the market, but there is another clause that could protect a buyer. It states the project has to be “significantly” completed after 2 yrs of signing the contract. Depending on when you signed your contract you could try to get out of your apartment. I personally want to get out of mine and would join any class action suit; whether it be based on 2 yr significantly completed clause or the fact that the developer changed the standard finishes. I was forced to pay almost $10k extra in upgrades just to get the finishes that were shown to me in their sales office.
Evan is already at the 2 yr mark so he might be able to do a law suit to get out of his deal. How do I contact you cause I would love to get out of my contract. I’m at the 2 yr mark on Sept 6th.
I have some more information between how Cynergi currently looks and how it will be delivered versus how the sales people and marketing materials depicted it. This is enough grounds to get out of the deal (in my opinion):
1. Original closing was supposed to happen Winter 2006
2. Then pushed back to early 2007; now late 2007
3. Balconies are supposed to be industrial finished railings fabricated of steel mesh and polished metal. Current balconies are aluminum painted white.
4. Balconies are supposed to be a minimum of 8 ft deep
5. Adjoining 5 story garage is actually equal to 6 stories. My unit (on 6th fl) was supposed to overlook the pool and now looks onto the garage.
6. Walkway to the pool area is flat in all pictures but actually slopes up now.
7. All appliances, cabinets, vanity and sink in the showroom (see pics) are standard. In early 2007 the developer informed us to pick out upgrades and now the standard finishes in the showroom are upgrades.
8. Was offered to purchase an assigned parking spot during the upgrade selection but all parking spots are assigned at or prior to closing
9. Bathroom is supposed to have floor to ceiling white subway tiles and floating vanity and steel bowl. Instead they’re sq tiles in beige/tan
Hi Brian, I am very concerned about this project not only based on the fact that the market has taken a serious downturn, but also because of the reasons you stated above. I read the sales contract several times. The first item (in big bold letters ) is that the developer has the right to use the first 10% of the deposit towards construction. The next items, also in big bold letters, is that the developer has the right to use “all’ of the deposit providing for some “assurances”. Whatever that means. In other words, they will use all the deposit moneys towards construction.
Additionally, aside from the pictures of the finishes you took at the sales office, nowhere does it state what finishes the developer was going to put on the unit. The sales broshure says nothing, the contract says nothing. As a first time buyer of a new construction condo, I did not bother to have the developer state the kitchen and bath finishes, type of appliances, and parking space number, etc. on the sales contract at time of signing.
In other words what chance do we have to win a lawsuit against the developer?
I believe what might happen is that if enough buyers walk out of the deal, then the developer will turn the project back to the lender at which point they (the lender) will resale the units to the public at a short sale between $250 and $300 per sf. I beleve we paid about $350.00/ sf
Lastly, we should find more Cynergy buyers and share information.
I agree with all your points. No where in the contract does it state what appliances or finishes are in the apartment. What we do have is the sales brochure which states the bathroom finishes and the pictures which shows the standard appliance. On top of that I have an email from the sales people that the developer isn’t offering any upgrades other than the Glass tile backsplash and the bose sound system. That means everything else is standard which we know isnt the case because we had to pay for those as upgrades. Lets assume the developer used the deposit towards constructions, if the contract is cancelled, either by the developer willingly or by the court then those monies will have to be returned.
I would love to get out of the deal and I spoke with Evan and he too wants to get out of the deal as well and will consider legal action (as will I).
Hello Brian and John. I too have a contract to purchase a 1-bedroom 7th floor unit at Cynergi. What I am reading here is a real eye-opener to me. I too paid for the $10k upgrade package and do recall noting that what was being “sold” to me as an upgraded bathroom vanity was what shown to me and what I expectrd to be standard…even the appliances!!! I took pictures too and was drawn to the subway tiles and floating vanity sink too. This now sounds like the good ole’ “bait-and-switch”. It’s actually funny…now I can se why the sales agents aren’t returning my calls….hhhmmm…. What you mention about he balcony finishes really kills the look of the building and with the situations with the downgrades, will really affect the appeal. I am plannin on going down to Miami next month and was expecting some exciting news about Cynergi. After reading these posts, I’m concerned about what is happening with the project. Do either one of you have any additional information as far as what recourses Cynergi buyers have? I would definitely be interested in discussing this further with you both.
Regards,
Rich
Just wanted to add some additional information….I was also in contract with the Soleil Miami project and was able to get out of that deal after two years(I entered into Cynergi and Soleil at the same time in 2005). The issue with Soleil was that the city did not approve the plans to build the project as stated to buyers and therefore evoked the “opt-out” clause of the contract. That one was easy since it came from the developer. You all should take a look at the Nightline ABC report on the Miami condos and how many investors/buyers are suing to get out of their contracts as the projects are not being finished as promised. http://abcnews.go.com/Nightline/story?id=3362215&page=1
Just wanted to give you all some additional informaiton. Check out the ABC Nightline report on Miami condo buyers who were suing to get out of their contracts because the projects are not being completed as stated. http://abcnews.go.com/Nightline/story?id=3362215&page=1
I as I stated above, I know the developer well. I am meeting with him at the site next week. I will ask him all the important questions about the finishes, upgrades, est. time of completion, etc. etc. If you have a specific question to ask let me know and I will ask him. Insofar as a lawsuit, I believe that the first thing we must do is to find as many unsatisfied Cinergy buyers as we can. I will try to get some more answers from the developer.
Again, if the deposit moneys has been spent on the construction, how are we going to get it back? Is there a way to find out from the escrow agent what percentage of our deposits is left?
I will let you know more once I meet with the developer next week.
thanks
can you drop me a line directly? Lucas can give you my email address. I would ask the developer about the balconies not being the mesh polished metal. I would also ask about the height of the garage higher than 5 stories since it was supposed even with the 5th fl. I would also raise concerns over the bathroom finishes since they’re nothing like described (floating vanity, subway tiles, stainless steel sink, etc).
We could not meet this week. I will try for the next. In any event, we should be prepared to go forward with litigation against the developer. I was referred to an attorney that handles these cases. I will give him a call on Monday.
thanks
keep us posted as to what you find out this coming week with the developer. Also let us know what happens with the lawyer.
Can you drop me an email directly? This blog could be monitored by the developer and we don’t want to reveal potential strategy
It appears that Cynergi is offering a free mini cooper and discounted closing costs if you buy a loft. Maybe we should all tell them if you want us to still close on the unit we want the same offer
I have bought a 1/1 at Cinergy in sept.05 and also want out.
Please contact me via email to discuss a class action or other ways out.
Instead of offering a mini cooper and discounted closing costs the builder should put that money toward finishing this project the way it was intended!
One more thing John Dow since you are an appraiser do you think that the unit will appraise at the asking price?
No bank will give a loan on a unit that does not appraise and since the contract is based on cash deal we could be in a big mess!
Honestly I don’t think this John Dow will help much. His story just doesnt add up. Supposedly he’s friends with the developer, yet he’s suggesting a class action lawsuit? If he was friends with the developer I would think the developer would let him out of the contract. Also John Dow has never posted another entry on this blog even though he was supposedly going to meet with the developer. Something’s fishy with him or maybe it’s just the developer in disguise trying to get information from disgruntled buyers.
I don’t know if a class action suit would work since everyone purchased at diff times and some people may have different issues than others. In my situation the balcony size is incorrect and the height of the bldgs are different. My unit is on the 6th fl overlooking the pool. If you drive by now the 6th fl now doesn’t look over the pool anymore. Also in the condo docs there are blueprints which lists the bldg heights and there is a diagram of the walkway that connects the two and it’s shown at a decline yet in actuality its at an incline now.
The developer needs to close on these units otherwise they will be in default of the loan they took out on the bldg. The last thing anyone wants is the developer to declare bankruptcy and then we now have to fight with a bank who has a lien on the bldg as well as the purchasers who have a potential lien. It might be in everyone’s best interest to close on the unit but maybe contact the developer to renegotiate the price to reflect the current market conditions or get a mini cooper which is roughly $25k.
Take notice the common charges. It’s very low at .36 a sq ft; maybe the developer has managed to lower the expenses to keep the monthly charges lower than originally planned in the condo docs.
I Brian, sorry that I did not respnd to the blogs since August. I can assure you that I am not the developer in disguise. I did meet with him and inspected the unit and the building a few times.
I have not responded to any blogs beacuse I was not sure if I was going to buy the unit. At this moment I decided not to close on the unit. I will be in touch soon
I have already been in touch with an attorney who has found several flaws in my contract. Most importantly, the developer was to have scheduled a closing no later than 6 months past the “outside date” which is 2 years beyond the date of execution. I have a very powerful attorney who would love to take action and the more we have the stronger the case. Anyone interested email me back at [email protected].
i have a unit there as well and the changes are considerable, i was supposed to have this big windows from floor to ceiling and now i have 2 tiny windows and a lot of wall. i know the firm rep the developer(they re pitbulls, word on the street is they ready to fight anyone trying to get out of the contract, however the 2 yr option for those that can take advantage of it seems like the best way out, mind you $$$ will be spent on lawyers, fight might be a long one.
Having floor to ceiling glass changed to two windows is a MATERIAL CHANGE to the original design. Material change is sufficient to cancel the contract, but it would take a lawyer to bring this up and you would have to “fight” to get out of it. In this market all developers will fight to prevent people from cancelling their contract, but if you have a legal justification for cancelling then a lawsuit is the only way out. It may take time, it may take money, but if you have legally recognizable reasons (material change (such as sq footage, changes in windows), 2 yr closing clause, violation of HUD ILSA regulation) then it could be worth the gamble to sue.
My greatest concern is that on the sales contract the developer has the right to use all of the deposits. (10% +10% providing certain assurances(?)). Is there any moneys left in the escrow account. Has anyone contacted the escrow agent to see if there is any moneys left? I believe that there are going to be sveral buyers pulling out of this deal. The developer is not going to be able to pay off the loan and most probably will go into default.
From my understanding of the contract 10% can be used for construction and 10% is held in escrow. Regardless of the developer going into default as a contract holder you should have a lien on the apartment. So if you sue to cancel the contract and the verdict is in your favor the court will order the escrow agent to release funds. If there is no money in the escrow then I would think you would have a lien on that actual apartment unit for which you were in contract. The developer (or bank) wouldn’t be able to sell that unit until the lien is satisfied.
i saw the building this past thursday, went inside the units and have to say that i was extremely disapointed by what i saw. finishes are so far very poor and the units just dont match to the $$ paid for them. I can oficially stated that if you bought at cinergy i’ll take many years before you can make ur $ back let alone a profit….
Since you went inside…how “finished” are they? When do you think they will close? Did they give you an estimate on closing dates? What was disappointing about the finishes?
they are pretty much done with it, the units that are not penthouses have the industrial finish, the penthouses have the regular condo finish becuase the city didnt allow pipes to run through the inside of the unit, (insulation of the roof)i heard. the building should be closing in about 2 to 4 weeks. E levator is working, and the whole 9 yards. however if certainly doesnt look like the idea i got from the showroom when i bought it, it looks cheap, with cheap finishes…..
Is anyone interested in joining forces to fight the developer and get out of the contract?
Can anyone recommend a R.E attorney in Miami?
Do you know if any closings have taken place and how much the units appraised at?
Feel free to email me at [email protected] with any suggestions or comments.
Brian
When you say finishes are disappointing, can you expand on this? Also, what about pool area, lobby, gym, garage. Are these also near completion? Last time I visited the site, they were nowhere near done, and this was in early January. Who told you 2-4 weeks til closings?
Has anyone had success with any real estate attorneys?
I don’t think the developer has contacted anyone regarding closings yet. Not sure what the hold up is. Per the contract closings can’t happen unless 15 days notice is given…so the soonest possible time closings can happen would be March 1st.
It sounds like enough people on here want out. I’m sure a class action suit can be started with everyone claiming they violated the 2 yr completion clause of the contract and the fact they substituted finishes and appliances of lesser value/quality than what was described/marketed in the showroom. They’ve also violated HUD ILSA.
Brian, from your posting on Jan 14th you mentioned the cheap finishes…can you describe or elaborate?
Has anyone contacted D/K Phillips attorney at law in Miami? I called them to schedule a consultation but they will charge a consultation fee. I do not mind paying it, but I want to make sure that someone has not done already so. Has anyone contacted any other local attorney?
I contacted Hoffman & Hoffman attorneys in Miami. They will work on contingency but will retain 40% of money recouped and 10% of the down payment if not all has been used for construction.
I spoke with the closing coordinator who said she would keep me informed by email as closing approaches. So far nothing! I believe that the longer it drags the better off we are.
Steve have you contacted D/K Philips?
What have you found out?
40% of money retained and 10% of deposit,seems like a lot to me. have condos come down about 30 to 40 percent in value? how is that a good deal? hoffman & hoffman you’ll never see me again.
i will post the info about the law firm i will visit on friday, they’are not that expensive, the key is to save as much as posible from the original deposit, giving it to the developer or the attorney is the same to me.
Where did everybody go? The building is ready and it is crunch time. Has anybody decided not to close on the unit? let’s get some feedback. I decided not to close.
I have decided to close and ride the tidal waive.
I just don’t want to walk away from the money that I have invested in Cynergi.
I have not heard from the closing coordinator yet.
I would love some feedbacks from all of you!
I asked for a walk-thru of the unit but the developer said they’re not ready yet. Based on that closings will not happen for another month at least. I don’t know whats holding up the closings…there has to be something going on.
Here is some potential good news for people who live in NYS and purchased condos.
As reported in the Miami Herald and the South Florida Business Journal, the New York Attorney General’s Office recently ordered developer giant The Related Group to refund preconstruction deposits to buyers who were marketed and sold certain Florida condo units in New York State.
The directive was issued under a New York statute called the Martin Act, a provision of which makes it illegal “to make or take part in a public offering or sale in or from the state of New York of securities of participation interests or investments in real estate,” including condominium units, unless the offering or sale has been registered in New York. See N.Y. General Business Law section 352-e. By way of background, the Martin Act is an old law dating back to 1921 that grants the New York Attorney General rather broad prosecutorial powers, and, in fact, disgraced ex-Governor Eliot Spitzer prominently made rather expansive use of the statute during his days as Attorney General in prosecuting various securities frauds.
From the news reports, it appears that Related is being given an opportunity to respond to the Attorney General’s Office and challenge its finding. One may wonder what kind of power the New York Attorney General would have to enforce its mandate, although it would seem that if push came to shove, the Attorney General could seize any assets held by Related in New York for purposes of enforcement. Also, while the Martin Act does not itself allow for a private cause of action (meaning that only the New York Attorney General can enforce the law), it is important to bear in mind that the Florida Deceptive and Unfair Trade Practices Act (”FDUTPA”) is broadly worded insofar as ”any law, statute, rule, or ordinance which proscribes unfair methods of competition, or unfair, deceptive, or unconscionable acts or practices” may serve as a basis for a violation of FDUTPA. Because FDUTPA, unlike the Martin Act, is privately enforceable, buyers who have been aggrieved under the Martin Act could conceivably sue on the basis of these violations in Florida court under FDUTPA.
Attorney MICHAEL J. SCHLESINGER will not take in cases as they are too busy. Any other suggestions? Does anybody know any other attorney that is handling Cynergy cases?
Not to be too pessimistic but there are a good number of brand new buildings selling one bedrooms at around $300.00/sq.ft with better views and quality. Cynergy is selling for $450.00 s.f for inferior quality of construction. Be aware of the square footage represented by the develper. I believe the unit is considerably smaller than what is stated on the brochure. Did anybody get an appraisal report back from a mortgage company after applying for a mortgage? good luck……..
I’ll bet that the developer is playing hardball. My belief is that they will close as many units as they can at the original price. The rest of the unsold unit will be rentals or they will be transfered to the lender. 1 bedroom unit are selling in this market area around $250 sf. It will be years before you will recoup your of $350 to $400 a sf investment
You guys might want to contact the developer; I drove by the building today, and there are NO finishes in the units, construction has ceased, there is a fence around the property and a sign that says the building is for lease for sale.
Can someone please confirm that construction has ceased????? This is huge. Poor Observer do you have a picture something to verify I am out of town and really want to know. Thanks for any current info.
If the sign says for sale or lease..then I may have already been foreclosed! How could that be a developer sign when he has contracts for individual units?
Any for lease sign probably relates to the retail stores on the groun level. Also the developer may be selling retail space as well and could be leasing apartments that aren’t in contract. To my knowledge the developer is still solvent, but may be having problems getting their certificate of occupancy. The fences have to remain up until they get their CofO.
I spoke to the developer’s secretary. She said that closings should begin in about 30 days (I wonder if it is true)
Insofar as the fence is concerned, I agree with Brian. I believe that either they did not get the C/O or they are leaving it there for security reasons. The buy or lease sign is for the stores.
I also checked the Miami-Dade county records and saw no liens against the developer.
Cynergi has obtained the c/o. it just need another formality from the State and we can then move forward. Closing notifications are to be mailed out within the next 10 days.
The developer is still way behind scheduled completion of the building. Does anyone know what it means? Will he have to pay penalties?
Has anyone spoken with an attorney?
Where do we stand?
Corinne, who did you hear from that Cynergi for their CofO? What “formality” did it need from the state. The developer is most certainly late; most owners have signed their contracts 2.5 to 3 yrs ago. I think everyone either needs to renegotiate the contract with the developer, walk away from their deposits, close on the unit or sue to get out of their contract.
Closings can not happen until late May at the earliest. Once notices go out it has to be at least 30 days before closings can be scheduled.
What does the contract say about the buyers’ rights should the seller not deliver the unit within 2 years?
Buyers should not be allowed to walk away without losing their deposits if the seller delivers what they promised. But buyers should not be expected to keep their lives on hold indefinately, beyond the promised delivery date.
Because to the change in credit availability, many buyers that could have closed within two years of the contract, could no longer close or only more expensively with higher down payments or higher interest rates. The contract probably does not have a financing contingency.
The fence is down! My husband went by this morning. He actually drove through the parking lot before he was stopped by a woman who said they are planning a gate for the upper levels of the lot but the city has mandated that the bottom level be open to the public – sounds like bull to us – she said if we want fencing, we will probably be able to do it through our association. This could be completely untrue as we (pre-const buyers on the top levels) have not been able to get call-backs. She said only appraisers can enter the building now. Next will be owners with their walk-thrus in a few weeks – that usually means months with these people. Has anyone found a lawyer worth working with on this?
Attorney MICHAEL J. SCHLESINGER will not take in new cases
Attorney D/K Phillips will charge you a consultation fee
attorneys Hoffman & Hoffman. did not contact them yet.
The generous discount has to be half off the original price. As I said before, they are playing hard ball. Closing at the developer’s original price is suicide in my opinion. The neighborhood unfortunately got worse, and the condo prices have plummeted with no end in sight. Not to mention the overall poor quality of the finishes and overstated size of the units.
I had contacted Hoffman & Hoffman. They charge $300+ an hour or on contingency 40% of the money that they recoup from the builder.
That’s highway robbery to me!
I was told by my loan officer who was contacted by Janet closing coordinator that Cynergi has obtained their c/o.
Contact at Cynergi: try Sheila Diaz 954-239-0327 or at [email protected]
I don’t think I will be closing on my unit either. The market is insane in Miami….we would be holding the condo for a real long time before we recoup any type of equity.
so I guess no one has gotten their units appraised? Has the developer contacted owners for a walk-thru? I haven’t received any notification at all yet.
there are 4 people suing cynergi, i’m included there, their lawyers dont even bother in returning calls, so we just suit them……..the owner changed his office address, and guess what nowhere to be found to deliver the letter to him as well, they used!!!!!!!!!!!!!!!!!!!10 % of the deposit for constructions as stated in the contracts, their lawyers are pitbulls however they went over the 2 year mark for completion and thats a plus for us, my lawyer isnt a charging a huge fee, 20% if he doesnt need to sue and 35 if he does, $1000 retainer fee, the way i look at it, the only way the appraisals come in range with the price is because the developer is doing some cash closing in the units first to bring the value up, cheating!!!!!!!!!!! and then when you close you’ll be left holding the bag, maintnance fees will skyrocket when more than 50 % close, forget the 36cents per sq footage, i cant close, i wont close, i rather fight.
Steve, you mentioned you got a closing notice for May 20th. Did you just receive that notice? Correct me if I’m wrong, but the developer is supposed to give 30 days notice before a closing. If you just received notice, then closing should be 30 days from that date.
Fraud Fraud, as of today I only see 3 lawsuits against the developer. Has your attorney filed yet?
The other 10% will be in escrow, developer cant touch it. Best case your attorney will go after that 10% after suit.
Some contracts have a clause that any deposit over 15% of the purchase price will be returned if buyer defaults.
I would expect an attorney could go after the excess of 15% with less work and for a flat fee. best blog in miami re suing developers is Jared Beck. I think Lucas has a link off his front page
Brian, the notice is date May 5th for closing on May 20th. In any event, I retained a lawyer who is already working on a couple of Cynergi cases. His name is Robert Cooper. From speaking to the assistant, it appears as if they understand the situation. I suggest to contact them so that the greater the cases the easier is to litigate.
Insofar as the deposit, read the contract carefully. The developer has the right to use the first 10% towards constrcution and also the next 10% providing he gives certain assurances (It’s in bold letters in the front of the contract). I will bet anything that he has used all of the deposits towards construction.
It’s crunch time . We must all stick together and not close.
You said: “I will bet anything that he has used all of the deposits towards construction.”
I’m not involved in Cynergi and would have to use GPS to find it, however, if your deposit was 20%, the developer, by law, was to have deposited one-half of that (10%) into an escrow account. If you default by not closing, you are entitled to one-half of the escrowed funds PLUS all accrued interest.
So if your deposit was $80,000, yous hould be entitled to a refund of $20,000 plus all accrued interest on the $40,000 held by the escrow.
Jared Beck, Esq. notes this on his blog:
“Another important factor driving the condo litigation upsurge in Florida courts is the protection afforded by Florida condo law to buyers’ deposit monies. The key Florida Statute is section 718.202. The statute provides that all deposits up to 10% of the purchase price must be paid into an escrow account and held there until closing (any deposits above 10% of the purchase price may be released to the developer, but only “in the actual construction and development of the condominium property,” and the purchase agreement must disclose this possibility). And particularly relevant given current market conditions, the law also forbids the escrow agent from releasing any funds to the developer where “prior to the disbursement the escrow agent receives from the buyer written notice of a dispute between the buyer and developer.” The only exception to the escrow requirements set forth in the statute are where the developer files proof of acceptable “other assurances” with the State of Florida — such as a surety bond or an irrevocable letter of credit — to secure the buyers’ deposit funds.”
as you state: “any deposits above 10% of the purchase price may be released to the developer, but only in the actual construction and development of the condominium property, and the purchase agreement must disclose this possibility)”
But it is in big BOLD letters in the front of the contract that the developer may use the additonal 10% towards construction providing he gives ceratin assurances. I think this means that he can take the additional 10%. The question is what are these assurances? a bond perhaps….
by the way….. if you intend to close, make sure that all the mechanics liens have been satisfied and paid in full before the C/O. I just noticed a large mechanics lien of $90,000 from an unpaid balance. Other liens may follow…
Check the “Default” Para. in your Purchase Agreement. As an example, Paragraph 13 in Related’s contracts driectly state that if buyer put up 20% deposit (10% was escrowed) and then did not close, that buyer would be entitled to the equivalent of 25% of deposit plus all interest accrued during escrow.
The “big, bold” “ANY PAYMENT IN EXCESS OF 10 PERCENT…….” is on Related’s contracts as well.
Make sure if you are filing the claim, to serve notice on the escrow company insisting that they do NOT release any funds from your segregated escrow until claim is resolved. That will “wake up” the developer.
I just spoke to the attorney that is handling other cases in Cynergi. He sent a demand letter asking for the amount held in escrow for one of his clients. The escrow agent sent him a response letter saying that all the moneys held in escrow have been released to the developer…..
This is what I was trying to tell you. I believe the money is gone. they have used it towards the construction. He probably had to put up a bond for the 2nd 10% deposit. It will be awhile before you will see a penny back.
Check with the attorney about filing against the escrow company. They may have broken the rules in releasing the escrows prematurely and they have deeper pockets than the developers.
I dont know in other cases in my personal case, my 10% is still with the escrow company, call them and find out, if you close you are dead, i saw the building inside and the kitchen and the bathrooms are definitely cheap, they just dont look right, specially when you paid close to 500 per sq footage, dead end for sure.
My attorney is filling the lawsuit this week, i thought it was already filed. Remember if we all stick together our lawyers most of the cases are worked on contigency basis, the developer is paying his legal team a lot of money, they have to settle or else face a mounting debt.
Can anyone recommend an attorney that works on Contingency and is already handling cases in the building?
Brian- have you made and progress with Marci and your lawsuit?
I have confirmed my 10% hasn’t been released from escrow. My attorney has served notice to the escrow agent that I’m in dispute and they are not to release the funds until the dispute is rectified.
Steve, Cynergi is in violation of closing. In the contract they must give 30 days notice for closing. May 5th notification means closing can not happen until June 5th.
Fraud fraud, did you do measurements of your apartment to see if they differ from the condo docs? Is it true that the exposed A/C duct work is now enclosed?
They really cheaped out on the finishes. What they put in the apartment is nothing like they had in the showroom or condo material. Unless you upgraded your finishes (finishes that should have been standard) then you’re left with an apartment with really cheap and shitty finishes. The developer has really shot themselves in the foot with this one. They’re opening themselves up to lawsuits just from the changed finishes and possibly altered apartment size. It wouldn’t surprise me if the developer goes bankrupt, especially if there are a lot of lawsuits.
My attorney Robert Cooper 305 792-4343. They work on a contingency basis. They are the ones that told me 10 day notice not 30 days. In any event I think that the developer is doomed. As far as I can tell, they originally sold only 70% of the units. I believe that there is going to be at least another 20 that will not close, plus the ones that want to close but cannot get the appraisal high enough to get financing, and so on….
Insofar as the measurements, the condo docs are correct. What’s not correct is the developer’s representation of the square footage which is at least 15% smaller.
Most importantly, there are now several mechanics liens recorded. I don’t think the lender will allow you to close even if you want to. Ask your attorney.
Look folks, you are not going to get a penny back. Those real estate contracts are buttoned up tight. The developers used well-known “previously litigated” real estate contracts that you signed.
When i took my bar examination in Florida this past February, i had dinner with several out of state attorneys that were moving to Miami to take “advantage” of people trying to get out of their real estate contracts. It is a quick and easy buck for any attorney, even if the client loses.
It is all a racket, as is Miami. And now the attorneys, aka sharks are beginning to bottom feed what is left of the busted real estate market in Miami.
I am on my way down to Miami this year. But not as a real estate attorney. Rather, i want to get into prosecution. Because, financially devestated Miami is set to explode with crime. And it will be the best city in the world to gain this type of legal experience. In fact, soon to be prosecutors are flocking throughout the country to prosecute crimes in Miami.
Nevertheless, My heart goes out to all that lost in Miami’s horrific ponzi scheme.
Good luck, and God bless,
P.S.
Remember, in civil cases, plaintiff mostly lose, in more ways than one.
“Does anyone know what happens with the deposits still on hold in escrow if the develop files for bankruptcy?”
As the developer did not deliver “clean” title to the RE (condo), I believe the segregated escrow account would be under the control of the BK court. As such, you would have a BK attorney petition the BK Court for a full return of the one-half of your (10%) deposit, without having to go through a litigation and BK lawyers normally get an hourly fee from you NOT a 30%-40% contingency.
Better yet, YOU should be able file your BK claim yourself and present it to the court yourself, circumventing the need for a BK lawyer.
I forget the condo case, but a few months ago one went into BK and the 10% deposits which had been escrowed were returned in full to the “buyers”.
This may be the reason some of these developers drag out the closings…..to have the purchsers in “default” prior to them filing for BK.
Hello everyone, been following this blog for a little while and I am going to the Title company tomorrow, they can’t give any information over the phone. They did confirm that my money is still in escrow, how much I’ll find out tomorrow.
My attorney has discovered that most people had their full deposit in escrow. Some people had 10% user for construction so my attorney is going to inquire when the funds were disbursed and why
just went to the title company, they still have 10% of my money. The first 10% was redeemed in august 2007. They don’t when the closings start. Their best guess mid June.
I used the Law Offices of Nicholas Felzen, P.A. to Cancel my Real Estate Contract and Recover my Deposit for another property and I am very happy with the results as he was able to get me back my deposit and cancel the contract. His contact information is:
Law Offices of Nicholas Felzen, P.A.
3059 Grand Avenue, Suite 310
Coconut Grove, FL 33133
(305) 498-1956
Fax (305) 447-4479 [email protected]
I drove by Cynergi yesterday. It looks like they’re ready, but I noted a few things about the construction. Windows are missing from the garage area. It looks unfinished and needs to be completed. On the pool level the white pergola structures with white drapes has been replaced by an ugly blue tent. There are no exposed air conditioning ducts as described in all their materials. The developer has delivered a product that is NOTHING like the showroom or marketing materials have described.
I am alive!….Brian,that’s what I have been trying to find out. I don’t believe anybody closed yet. I am on hold until I hear back from the attorney. The building is vacant and there is no sign of life yet. The commercial storefronts have no signs. Its going to be a disaster…..
Well you guys my mortgage broken just contacted me to report an appraisal done on someone else’s unit (no upgrades were done). The result is so bad that he wanted to know if he should still order an appraisal for me.
The question is how many contract holders are willing to close and how many will walk away?
The final figure will affect monthly assessment eventually not in the first couple of years since the bldg is new and things should not break down but later…..
Is anyone starting a lawsuit to try to get out of closing?
What would happen if most people walk away?
If builder files bankruptcy?
What are the speculated results of this lawsuit?
Would you get any money back at all??
If the builder files for bankruptcy your escrow is still secure, whether or not it’s 10% or 20% depends on whether or not the funds were used for construction. The bank would then take possession of the building and then try to force everyone in contract to close. Any units that don’t close will be dumped onto the market at pennies on the dollar.
Have you contacted the developer directly regarding appraisal. If they know you won’t be able to get a mtg because of the appraisal value they may renegotiate the contract if closing means they would still make $$$ rather than having you walk away from the deal.
As far as lawsuits go I don’t think anyone is talking about a class action because all of us signed contracts at different times and some of us have issues besides the 2 yr contract closing date.
Lastly, the developer will be responsible for paying the maintenance on the units they still own. If they own most of the units they may declare bankruptcy because they may not be able to afford to maintain the monthly payments
Brian said: “If the builder files for bankruptcy your escrow is still secure, whether or not it’s 10% or 20% depends on whether or not the funds were used for construction.”
If deposit was 20%, there should be 10% in escrow. If developer goes bankrupt, you can file a secured creditor’s bankruptcy petition directly with the Court to retrieve the entire 10% plus accummulated interest that is in your escrow account as they are segregated. Once it is determined the escrow is “yours”, the escrow company will release the funds to the Court, earmarked for payment to you.
You can either pick up the petition at the Court and file it yourself or get a bankruptcy lawyer…the good thing is a bankruptcy lawyer will charge you by the hour, rather than a retainer and a hefty percentage.
It sounds like the best case scenario would be for the developer to file a bankruptcy. Just make sure you put the escrow company on notice NOW about a dispute with the developer so your funds will stay there until the “dispute” is resolved.
I contacted Robert Cooper and they are working on a few cases for Cynergi including mine. They seem to be on the ball and work on retainer with a typical 33% split for them and 40% if they have to go to court. This is typical for attorneys. You must have them or someone else put a claim on the remaining deposit ASAP before they file for bankrupcy.
Let’s all keep in touch and up to date with daily events.
Corinne,
I believe it is Bankers Title and Escrow (or Fidelity National Title and Escrow)….i have more than one property so get them confused. It should also be in your purchase agreement and is the person you wrote your first 2 checks out to. I would recommend doing this ASAP before they file for bankruptcy which they are no doubt likely to do considering all of the people looking to walk away or fight it out in court. Also, since the appraisals aren’t coming in, the developer is pretty much screwed. I guess what goes around comes around. Good luck.
nothing happened on May 20th. I contacted the attorney prior to that date and he put a freeze on the escrow, demanding the deposit to be given back.. So far I have heard nothing about being in default of contract.
I am also an investor in Cynergi project. My appraisal came back very low (about 40% less than contract price). Subsequently I am not interested in closing. I am ready to join others for a collective action.
i would sooner walk away than close. on principle alone. but, if you settle, you’re looking at making a bad investment worse. like going from the frying pan to the oven. cut your losses and either walk away or find an attorney who is willing to take you on contingency. worse case, you lose your deposit….2nd best, you lose your attorney fees. Unless you plan on owning for 10-15 years, DON”T CLOSE! The developer does not deserve your hard earned money anyhow.
The developer has just recorded the condo docs in public records
Enter Cynergi and under Document type enter DCO or declaration of condominium
What’s interesting is that all the surveys included in the DOCS have a date of May 2008.
I left my condo docs with the attorney, so I do not have a copy to compare them to the new one, but if there are any changes to the documents it is one more item to argue about, because they should have given us proper notification.
I checked the new condo docs on the miami website versus the original one and for the most part the dimensions are the same. The big change is the balcony which was supposed to be 12′ deep is now only 7′ or 8′ deep. Also the height of the garage has changed. This affects my unit because my unit should have overlooked the pool but now with the garage taller I look at a wall. This is a MATERIAL change and I was never notified in writing of the change as required. Sounds like a slam dunk for cancelling my contract…lets just see if the judge agrees.
Brian said: “Sounds like a slam dunk for cancelling my contract…lets just see if the judge agrees.”
Sounds like this developer will stall you into court…in about two years.
In the meantime, just in case the developer goes bankrupt, MAKE SURE YOU (OR YOUR LAWYER) PUTS THE ESCROW COMPANY ON NOTICE NOT TO RELEASE ANY FUNDS FROM YOU ESCROW ACCOUNT AS THERE IS A DISPUTE!
What about rest of the condo docs. Do you see any changes in the language of the bylaws or maybe under the “dispute” section, or any other section that would favor the developer?
Also, are you sure thet the width of the balconies was 12′ deep. It seems quite a lot. Does the origianl survey show 12′?
This is our first contribution to the conversation. We bought one of the top units and were similarly disappointed when every finish was downgraded last year, and with the lack of communication, long delays,etc. Is this a recurring theme in all the midtown developments?
Has anyone closed in Cynergi? Is anyone planning to? Why has this been such a shoddy operation?
I’ve been reading this forum for a while with some interest…and I feel sorry for you guys that ended up investing in this development. It just goes to show….location and developer reputation is paramount.
in the original condo docs there were no dimensions for the balcony. But in the floorplan I got when I purchased the unit it has the balcony dimensions and mine was listed as 13×12. On the new condo docs the balcony dimensions are listed and it’s changed.
I didnt look at the rest of the condo docs to see if there might have been any changes because there is way too much to read
Brian said: “I didnt look at the rest of the condo docs to see if there might have been any changes because there is way too much to read”
If you want to seriously challenge the developer, perhaps you should shelve that attitude.
There is a reason you have both an “old” and a “new” condo book……CHANGES!
“Changes” are supposed to be redlined in the “new” book showing the old language with the new language added.
The law says from the date you receive the “new” book, you have 15 days in which you can compare it to the “old” book and CANCEL your contract and get 100% of your deposit back, assuming the changes are material and effect you negatively.
I referred 2 cases to the Law Offices of Nicholas Felzen, P.A. to Cancel 2 Real Estate Contracts and Recover the clients’ Deposits and I am very happy with the results as he was able to get the Clients’ deposits back and cancel the contracts. His contact information is:
Law Offices of Nicholas Felzen, P.A.
3059 Grand Avenue, Suite 310
Coconut Grove, FL 33133
(305) 498-1956
Fax (305) 447-4479 [email protected]
I too have a contract and have filed a notice to developer to cancel with no response. I do not think closing on this deal is a deal at all. I think from all the responses here, we have strength in numbers and should try to work together as opposed to everyone just blogging and taking separate cases with separate attorneys. A class action may allow us to negotiate the attorney fees.
Looking forward to responses.
The problem is the developers will fight till the end stating whatever changes they made are not material or adverse. It will be very hard to get your money back. Perhaps a settlement may work. Can anyone comment on this?
I agree with Rich. Though I am not sure whether a class action suit is possible or not, it is possible to club together and negotiate a deal for attorney fee. I proceeding with an attorney to cancel this contract and if possible get back any money.
The developers are not big developers with deep pockets. They do not have enough resources to fight everyone in court. If enough of us bring action against them , they will have no choice but to go bankrupt. Remember that they originally only sold 70% of the units. Then, add all the buyers who are demanding their money back with the assist of an attorney, then add all the buyers that want to close but cannot get sufficient financing because of the appraisal being too low. Maybe only 10% to 15% of the buyers will close.
I truly don’t know how they are going to survive other then bankruptcy or they their willingness to renegotiate all the contracts at market value.
Being that the developers are not “big time” it’s ultimately then a losing situation all around. It’s just about “man up” and cut your losses one way or another. No matter what, the attorneys involved with buyers all see a big pay-day with contract cancellations etc. It’s just a matter of how much $$$ each one of us is willing to lose. I think, for some, it’s cheaper to walk away and maybe buy something better and bigger, sit on it, and ultimately make back your loss. But again, we have strenght in numbers.
Has anyone closed in this building yet? Anyone Who does close at there original contract price is probably already in the whole 50%. This building seems like a disaster!! I’m hoping to recover my deposit. I have been in contract for close to 3 years now. According to there contract they had no more then 30 months to have this place finished and start closings.
At this point. The developer can or will ask you to close. If you don’t show up at the closing you are in default and you will lose all of your deposit. At least, with an attorney you may recover something. And something is better than nothing at this point.
Hi everyone! I had a closing date of June 20th but retained an attorney to cancel my contract and get my deposit back.
The builder is in breach of contract since the bldg should have been completed within 2 years of signing the contract.
I got my appraisal back and it is a disaster! It did not appraise. It is smaller than on the docs and the finishes are lousy even with the upgrades.
What a disappointment!!!!
As for a class action it is not so easy because everyone went into contract at a different time and put in different amount of $.
But a better fee can be negotiated when we use the same attorney. The more cases they have to represent, the more money for them and the more damage for the builder!
i drove by this building yesterday. it’s an absolute joke. the fact that they were asking close to 400sq/ft (and that people were taking the bait) is beyond me. i don’t get it. what was possibly appealing about this building, either as an end unit or investment?
The finish product is a disaster but the proposed one, a high end boutique bldg was very attractive.
The whole concept looked great inside and out!!!!!
yeah corinne, but no matter how nice the finished product was advertised to be, the neighborhood was, is and will continue to be for the foreseeable future, a complete dump. i mean, isn’t a central tenet of buying real estate location x 3?
i’d fight like hell to get my deposit back on this. this building looks no different than the cheap condos that were put up on 27th avenue in the grove.
You missed the point. The property is (or at least it was) in one of the most up and coming areas in the US. Wynwood, Midtown, etc. were all supposed to be developed and the idea was that most of the old structures were going to be demolished or rehabbed. There was a lot of speculation. Unfortunately this market went sour and all the big projects had to be put on hold. I am still a believer of this area. But now we have to wait a few more years.
Steve
i don’t buy that…you start building an outlet mall and a few condo buildings and suddenly the neighborhood blows up in value? three years ago the wynwood area was a dump. cynergi and midtown were not gonna change that nor for that matter, a few more condo buildings and shopping centers. the gentrification/rejuvenation or whatever the hell you want to call it process, even if the boom continued on, would have taken over a decade. considering today’s RE market, i think you’re now gonna have to wait more than a few years for things to turn around.
moreover, i’ve been an urban pioneer before and i can tell you that you shouldn’t be paying a premium for “up and coming,” especially (1) when brickell, a more established neighborhood, was similarly priced during the boom and (2) south beach in the art deco neighborhood topped off around 500 sq/ft. both of these hoods had better current and long term growth prospects and investing potential when compared to wynwood. i mean this is a fundamental concept of investing…the more risk you’re asking me to take on, i should rationally insist on better terms for taking on that risk. the people at cynergi instead paid a premium to take part in a grand social experiment.
heck, the death kneel for cynergi was called long ago when lombardi cancelled pompeii. he knew that even at $300 to $350 sq/ft the neighborhood and price point simply didn’t work out.
i’m not trying to rub it in about people’s choice to invest in cynergi…but i remember when cynergi was announced and it piqued my interest exactly because i had been an urban pioneer before in chicago. when i was told the pricing (from the ridiculously hot girl who worked at the sales center – god bless her) and then drove through the neighborhood at night, i was absolutely astounded. in all honesty, it was at that exact point when i realized the boom was nothing more than a game of musical chairs.
How do buildings like Cynergi get marketed… to whom and where? I can’t imagine a Miami local going for that building when there were so many other better developments on the drawing/investing board at the same time.
Did anybody visit the area or was the buying done solely from a brochure and verbal promises over the phone? I don’t get it. As an investor, why would you take that over Icon Brickell or any of the Brickell Related stuff or the smalltime Non-waterfront junk in Miami Beach Proper?
As jcrimes said, it seems people knowingly paid a higher premium for something that had much more risk than comparable RE investments at the time. I would love to know what the “hook” was by the developer; it must have been 1 sweet story.
The simple marketing is to lie and lie and lie until you get somebody to bite. I have been in the Miami market for a while now, but I also monitored it from afar. Once I arrived in Miami i realized what a gross injustice the developers and RE fraudsters were doing to the industry. They go above and beyond “marketing” and essentially state that certain conditions already exist-24 hr lifestyle, full condos, shops and cafes exist, etc which is an out and out lie. They seem to have forgotten the difference between reality and fantasy, and have no problem promising the fantasy to anybody. It may be legal, but highly unethical. I will give credit to my realtor, at least she was honest and kept me from making mistakes in the hopes of future business. But many others i dealt with were unscrupulous at best.
Well add a bunch f projects to the list remember IOS n the bay. I wen tto the kick off party years ago wow what a great part super glizy all inluencers bar, etc.. nice music rose pedals, flowrs the works bu tlook at it now. empty as hell the buildign is in a shitty location…yes on the bay but surrounded by old crappy houses That project was selling in the 500’s back then. Shit I dnt even know if anyone will close. Any word Lucas? How about City 24 seems empty as hell another overblown project w/ 24 hour lifestyle. Buidling left a lot to be desired nice complete.
I may be very naive but I have working in this neighborhood for over 20 years. I have seen this area go well below anything you can imagine in appeal. Midtown, changed everything.
Say what you want, but the appeal of this up and coming Midtown area (includes Wynwood) was felt by a bunch of people, not to mention large developers who lost millions in marketing, architectural fees, payrolls costs etc. etc. and found themselves having to shelf all of their plans. These are very experienced investors i.e. Onix II, Cube, Midtown, and several others all around Midtown.
Why would these developer invest millions and lose it all in a couple of years? Because they saw the same thing we all saw: Upside. Now, I may be ignorant, but what about people who invested in the Meat Packing District, Harlem, etc. etc. in New York. These neighborhoods were in much worst shape than Wynwood and yet investors made fortunes. I know you cannot compare New York to Miami. However the idea is the same: Get a good return on your investment.
You guys are all monday morning quarterbacks. It was difficult to predict how bad this South Florida market would do.
The real problem is not Wynwood. It is the economy in general. Investors have seen huge condo losses all over Miami and we are not talking a couple of thousands of dollars.
The bottom line is that Wynwood is potentially a good area to invest. Now is probably the best time, in that property values are depressed.
In conclusion, do not give up on Wynwood. Once the real estate market picks up again, property values will begin rising again.
Let’s talk in 2011…..LOL
Not really, the same question I asked back then I still ask. Who was ever gonna buy all these condos up at the prices they were asking for right off the bat. Very if few end users.
However, price the condos correct for the end user and Miami salaries and watch those condos fill up. It’s very simple.
Keep them in the $99k to under $300k – $250k for the “very best unit” and they will all sell quicker.
Can anybody provide dates of when the demolition party and ground breaking took place????
There was a building there before Cynergi, correct?
Your feedbacks would be greatly appreciated!
Demolition/Ground breaking party was in Dec 2005. The old sales office was still standing at the current Cynergi site. ground breaking took place in Jan 2006
Thank you Brian. I just needed confirmation that there was indeed a building standing there because the builder states that construction was delayed due to hurricanes. They never intended to start building until the first quarter of 06, hurricanes or not!!!!
Also I spoke with Ron Davidson who insists on telling me that the showroom display were upgrades and only the penthouse units would have subway tile in the bath. Everything in the building, finishes included are exactly as they were presented to us. They have not differed.
How is it that a different appraiser can give me a much more favorable appraisal, say 5% below purchase price??? And a different lender provide a mortgage as well….
Any feedbacks on that?
Beware of that appraiser! get a copy of that appraisal and get it reviewed by another appraisal company. It sounds very fishy. One of the reasons why the real estate market has taken a dive is due to the over valuation by unscrupulous real estate appraisers.
Ron Davidson will tell you anything to get you to close. These guys must be so close to going bankrupt, they are going to lose a fortune on this project.
Is the appraisal you got that was so high, from a lender related to the developer?
I everyone really should contact David Philips, Esquire from DK PHILIPS. From what I can see he is regularly being interviewed by newspapers and was on television a number of time due to his effectiveness. I met with him and he charged $500.00 but I learned a lot from him and was able to make an informed decision on how to move forward. His fee is 10% of your deposits if he can get you out of the contract prior to litigation and 33 1/3% if we must resort to litgation. He has a lot of cases and I’m am using him. He is always easy to contact and really understands the law. I place my faith in him.
The doctored appraisal comes from the lender who is working with Cynergi. I believe it is unethical to embellish an appraisal to get financing.
I will know next week what modification they intend to do on the appraisal to change the value of the unit.
I have retained Nick Felzen who’s fee is 20/30%
He is reasonable compared to other attorneys and he has several cases from Cynergi already.
At no time did the sales people say the finishes in the showroom were upgrades and only for the penthouse units. Quite the contrary. When I went to the showroom I asked about upgrades and was told the developer wasn’t doing any upgrades except for the glass tile backsplash, which later was cancelled as an upgrade. The sales people are official representatives of the developer and act on behalf of them. Go thru all your documents, emails, etc to see if you have anything from the sales people or developers about upgrades and you can use this evidence against them to show they lied. In the marketing materials and description of the building it specifically mentions subway tiles in the bathrooms. There was no asterick noting that subway tiles are only for the penthouse units. Nothing that said finishes will differ between the penthouse and other units.
I agree the developer will say anything to make sure closings happen and this is one of the reasons why real estate and developers have such a bad reputation in Florida.
As fas as appraisals go, don’t trust the bank/appraiser the developer is using because they just want the condos to close. Ron Davidson is the owner/founder of Trust USA and they specialize in financing so I’m sure they will initially fund the mortgage and then sell it to another bank. Also if Ron’s appraiser is saying it’s worth 5% less is Ron willing to discount he unit to the appraised price?
Looks like two deeds have been recorded for the sale/transfer of units at Cynergi. Both unit 203 and 309 have been deeded to two different buyers for….$10.00
My bad…didn’t mean to say the apartment sold for $10. But it does show that some people are closing on the building. Either they were able to obtain financing based on appraisal price or it was paid for in cash. If it was financed then thats a good sign that appraisals are close to purchase price or the appraiser is taking some cash under the table or being pressured to get the apartments to appraise.
Brian –
in some states a certain number of units must be “sold” in order for the condo plan to become effective. I wouldn’t be surprised to see some inside sales by the developer just to protect the condo status of the project. Those two sales may not be arms length closings
Who gave you the “doctored” appraisal?. Have you hired an attorney to get out of your contract? Is anyone living in Cynergi yet? Has anyone been in court yet or deposed the developers?
Walking Out, what was your original appraisal? How much lower (percentage or dollar) was it from your original purchase? Did the developers appraisers give you the doctored appraisal. Whoever is giving the doctored appraisal has violated business ethics and is committing fraud. No wonder why Florida has the highest mortgage fraud in the country.
As far as depositions go, I wouldn’t count on this anytime soon. The courts are backlogged and the developers will come up with excuses and delays for depositions, discovery, trial, etc. Anyone thinking they will just walk into court and get out of the deal will be in for a SHOCK. You’re looking at a minimum of 1 yr wait for resolution.
My appraisal came 32% lower than the contract price. While such doctored appraisals are illegal, the two apartments that closed were appraised just about 5% less than that of the original contract price and was funded by some financial institution. I suppose it is documented and deeded . I am sure if this is investigated those involved will lose their license.
I learn that many units are already litigated (personally know three units).
One suggestion that can be collectively made to the developer is to convert the building to apartment rental complex and refund our deposit. This way there is some salvation. Any suggestions or takers ?
Walking out said: “One suggestion that can be collectively made to the developer is to convert the building to apartment rental complex and refund our deposit. This way there is some salvation. ”
That is real tricky. If pre-sales reach a minimum threashold (60% – 70%) and one guy ends up closing, you run into a mountain of legal issues if you want to convert back to apartments. Probably a good idea but it does sound like this developer can afford it.
I met with a client last week, she just closed on her unit and wants to rent it. So far there have been 2 or 3 closings but nobody living in the building yet. Basically comparing this building to nearby new projects it will be a hard sale…my client’s unit is a loft with no closet and average kitchen…other projects in the area have really nice kitchens and and common areas —-not to mention closets. The building is lacking character and I imagine they will decorate the lobby sooner or later as leaving it the way it is makes the building look pretty cheap. I think the rentals here will have to be below the average price for new condos in the area not only because of the poor finishes but also because even though it is in a central location the views unless you are in a high floor are not great-you are either looking into roof-tops of very old 2/3 story buildings or into the Garage.
ND- Why did your client close on this unit. Did she negotiate the contract price down? IF not she probably has lost 1/2 her $$ if not more. She would of been better off walking away from the deposit. The developer probably does not have any $$ to decorate the lobby. IS there even a doorman there? I have a strong feeling this building will have one of the lowest closing rates for any new condo building in Miami.
I am curious. Did the developer or the salespersons promise that there was any rental program or provide any financial projections of how much money could be earned by putting the condo in a rental program offered by the developer or the developer’s related management company? If so, there could be securities law violations.
I made a deposit on a loft back in May 2005, and just finished reading this exchange. I am also interested in hiring some sort of representation, or getting a class action suit started. If anyone has initiated this process, feel free to email me, I have two addresses….. [email protected] and [email protected]
I have been ignored every time I call to find out about closing or the status of the building, and I will not close at this point. Someone should take the lead on this and compile a list of names, units and deposits made so we can stay organized and get this resolved.
My email is attached if you want to send me your name, number and unit # with deposit amount. I’ll compile a list and send it to everyone. Even if we end up with different lawyers I’m sure it would help. My email again is [email protected]
I think most people on this blog already are dealing with attorneys. These developers delivered such an inferior product, there is no way I would ever close on this garbage building.
Just as an FYI. Cynergi obtained their Temporary Certificate of Occupancy (TCO) on April 18th and it expires today, July 17th. As of today there has been no extension of the TCO nor has the developer received their final CO. Without a CO or TCO the developer can not do any more closings. When a TCO expires and there is no CO all owners/residents have to move out of the building until the CO is finally issued or another TCO is issued
Thank for the update Brian.
Do you know if anyone has had any success with an attorney?
Help me out here, if I am not able or willing to close. The least I should do is put a demand on the deposit right. I can do that without an attorney right?
Brian thanks for the crucial info. Not having obtained CO? It is very interesting. Could somebody enlighten me why (reasons for) no CO would had been issued? Does it mean some problem with the building?
I think you need to have an attorney to do a demand letter.
Maybe there are problems that the city can’t issue a CO, but it’s also interesting that as of the expiry date there was no extension of the temporary CO.
Brian how do you know that the developer has not obtain a CO and that the temporary one expired on the 17th of july?
Me if you need an attorney call Nick fehlzen. He is works on contingency and 3 of us have already retained him for our case. His number is 305-498-1956. if yo speak to him tell him Corinne from the blog referred you. Good Luck!
Does anyone know how many units have closed so far, and if they are real buyers. Has anyone received closing notices, I have not heard anything from the developer in regards to closing on my unit, which I have no intention of doing.
I know there a lot more than 5. Where has everybody gone?. I know this situation is very depressing for all of us but we need to keep in touch and up to date with any situation regarding this building.
My attorney is going to file suit in the next week or 2. He has had no luck trying to negotiate with developer. Has anyone else begun litigation against cynergi yet? Has anyone even received a response from developer or his attorney? MY lawyer says I have a good case as my contract was signed over 3 years ago.
I drove by cynergi yesterday and someone is living there. As I was driving up North Miami Ave on one of the higher floors you can see furniture. So either someone is living there or it’s the model unit for the developer. As of today only 4 people have closed on their units at Cynergi
The only person there is the agent for Cynergi, she is living in the building and the also have one unit setup as a sales office. Which is visible from the street side.
Don’t think anyone else is living there yet. My feeling is that the 4 closings they had was all in house.
If I am not mistaken it appears from public records that 1 buyer has won his case for his deposit plus interest. There are several recorded contractors unpaid liens. We know that the developer got his C/O around May. As of September only 4 units have closed. This building is DOOMED!
Cynergi received their final Certificate of Occupancy on July 17th. It’s not unusual to have contractors unpaid since there could be disputes with their work or quality so I wouldn’t jump to any conclusions about unpaid liens. If you check all cases against Cynergi the lawyer representing Cynergi has filed a notice of unavailability/absence. There are several potential meanings behind such an action. It could simply mean the attorney is unavailable (e.g. vacation, out of town, etc) for a period of time. More disturbing meanings could be:
1) The attorney has been upaid by the developer and because of this she is making herself “unavailable”
2) A tactic to slow down hearings. By being unavailable it prevents or slows down cases that are pending
In my humble opinion it means the attorney hasn’t been paid and they need to slow down the number of lawsuits. This will only be a delay though and it doesn’t avoid the inevitable. Cases will be heard eventually and if they can’t afford lawyers anymore then I would think that would result in a default judgment.
And yes, Cynergi has lost their 1st case. Because of this they’re worried that it will result in a snowball effect and will cause them to lose all future cases. This is probably the reason why the attorney is unavailable. Cynergi will appeal the decision in order to postpone final judgment and delay any possible payouts. For those thinking legal action will be a short process are mistaken. This will become a long drawn out process and will probably results in appeals.
i have a friend who’s familiar with the case that was just won and has filed several suits of his/her own with respect to cynergi. impressive attorney if anybody is interested in following up.
Brian
it’s not that uncommon for attorneys to file a notice of unavailability. i think you’re reading into it way more than necessary.
Just so everyone knows. Cynergi is in default of their mortgage with Banco Popular and they’re proceeding with taking ownership of the building. Their intentions are to sell the building at auction. This hasn’t been heard by the courts yet, but the bank has already filed legal action and has requested the building be sold at auction to satisfy the defaulted mortgage.
On May 28th, Brian said about the Cynergy deposits: “The escrow agent is Fidelity”
On July 20th, me asked: “Me asked: “The least I should do is put a demand on the deposit right. I can do that without an attorney right?”
On July 20th, I said: “The FIRST THING you should do is contact the escrow company that hold your funds and PUT A HOLD ON THE ACCOUNT, citing a dispute with the developer. ”
—————
OK, let’s take an exam. How many of you have contacted Fidelity about you individual Cynergi escrow and instructed the to “FREEZE” your account until you release it?
If this developer goes BANKO, have your lawyers file a petition with the BANKO Court to retrieve the entire one-half (10%) of your original deposit which Fidelity is holding!
I apologize if I confused you. “BANKO” is the word I was using for Bankruptcy Court. IF the developer declares bankruptcy, you will have to file a bankruptcy petition with the bankruptcy could laying claim to all of the funds that Fidelity is holding in your escrow account. (There is probably either half of your 20% deposit plus interest in the account.) As the money is held by Fidelity in escrow, you and the others in your position ar pretty much “first in line” as Fidelity will not release the escrowed funds until they receive a Court order or a release singned by YOU AND the developer.
First step: Call the Fidelity people and FREEZE the funds in your account. They are very cooperative!
If the developer does not file a bankruptcy, you ca go ahead with your lawsuit. Hope this helpes.
Can anyone here give me advice on the procedure or process that I need to claim back my 5% or10% preconstruction deposit that someone in here recently said is required to be refunded regardless by the escrow company holding my 20% deposit? Do i just send them and the developer a letter or do I need an attorney to do this. Thanks in advance.
There was a judgement to release all deposits + 11% interest on 9/29/2008 This was for one plaintiff. Could this promise a similar judgement for others. What happens if the first 10% is spend already?
i bought a preconstruction unit at icon brickell for 489.000.00dollars.the closing is in november.one appraisal came back at 370000dollars.i am waiting for the 2nd appraisal.sales office says the contract is not contingent upon appraisal or bank approval.i dont know what my options are.
Thats insance, what does Cynergi need to discover since they have all the information related to the delays? It’s just a horrible delay tactic and might have something to do with the pending banco popular foreclosure.
Lucky for me none of their tactics worked. I actually offered them an incentive to let me out of the contract. I offered them 85 cents on the dollar to let me out of the contract and I would drop my lawsuit. They countered at $20k which was an insult. I then countered again but at 80 cents and I never heard back.
I was hoping to resolve the problem, but they didn’t want to cooperate so I said screw it; see you in court. Well that was the dumbest move the developer could have done because they lost the case and instead of paying out 80 cents on the dollar they now need to pay 100 percent plus interest plus attorney fees. That was just a bad gambling move on their part and now they lost.
Unfortunately with the building going into foreclosure and auction I will probably never see half of my deposit (which they used on construction) or the attorney fees. Banco Popular has primary lien at the mortage holder and unless they recoup their $25 million dollars no one that currently has a lien will see a dime.
Fortunatly the money in escrow can not be touched unless the court orders it and they won’t order it to pay banco popular.
They also offered me a settlement that I turned down, only 25% of what they owed me. But for everyone out there that hasn’t taken action yet, you MUST HIRE an attny to put a freeze on whatever money you have in escrow ASAP! It can be done in a day, just make sure you do it, or you will have no recourse
I put a freeze on my escrow my self by contacting the escrow company.
What difference would it make if you have an attorney do this?
At what stage would we receive the remaining deposit out of escrow?
Does anyone have any info on the status of the foreclosure?
If you still have 100% of your deposit in escrow then I would take legal action to get that money back. If they only have half in escrow and they’re offering 50% of the original deposit I would take it and then count your blessings.
For me, while I won judgment, I may never see the other 50% of my escrow deposit nor my attorney fees to fight the developer so if you can get 50% without incurring additional expenses I would take it
Question for Brian,
I hired an attorney, and i have a hold on half of my deposit (they used the other half)
Will Cynergi give me back half of the whole 10%, or half of what i have left? in escrow.
Karl, I looked at the court dockets and it shows that the judge dismissed the claim for summary judgment rather than being postponed for discovery. Have you spoken with Deborah about this? I won my case based on summary judgment so I would be concerned why your case for summary judgment was dismissed while another plaintiff(me) won summary judgment. Ask your attorney if something has changed in case law since my case was won
Wow, I live in Edgewater, and I drive past this building a lot on my way to the Midtown Shops. I’ve always wondered why the building, despite apparently being finished, seemed unoccupied. Now I know why. What an unfortunate disaster.
Karl did you talk to your attorney about your case. If I were you I would be concerned because I won my case on summary judgment, but your summary judgment was dismissed. Something must have changed since my case or maybe your attorney didn’t reference my case that won or maybe she argued on the wrong facts.
Brian,
She said that they dismissed it because they needed discovery and that she had to request a new court date. She seemed disappointed because you won based on summary judgement, but she said it was just a setback. Did you use Deborah as well? I’ll email her today and keep you posted. Also, my email address is [email protected] It may be easier and quicker to communicate that way, I only check this forum about once a month
I haven’t checked in to this forum for months but obviously need to make a move. Brian, who did you use on your case or can you suggest a good litigator? I checked and I still have $57,000 in escrow, which is half of my 20% deposit. It shouldn’t be terribly hard to get that back, should it? I’m inclined to pay an attorney by the hour and maybe have to spend 7K to get back 50K? The rest I’d hire someone on contingency and let it go on for years, if necessary. Comments?
I would highly suggest using a good litigator, but most work on contingency basis. My attorney that I used aren’t litigators, but specialize in real estate. I think my attorney was very good, but might have just been lucky to win the case since another case that was recently heard just lost their summary judgment.
The developer will not be giving back any deposits without a fight so you will need an attorney. Also with Banco Popular in the picture trying to foreclose on the building you now have to deal with both the developer and bank.
I know the developer is reaching out and offering settlements to people. From what I can tell these offers are only to those who have started legal proceedings. By the way, how many people on here have received offers?
Hi Guys,
I’ve been watching this building for a long time and am wondering about what will happen to the units? I didn’t buy pre-con but frankly I’m hoping there’s a way I might buy after the auction – any details on what usually happens next – will the units be made available again to the public? I assume this could be a great opportunity for those who waited on the sidelines? Sorry for all your troubles however… 🙁
Everyone’s gone quiet on this blog. I’m guessing people are getting settlement offers from the developer and the offer has a “gag order” attached to it.
Anyone on this blog using Robert Cooper will be happy to hear he is filing the complaint tomorrow. I’m hoping the developer will come back with a much higher settlement offer. The 1st offer I received was $20k, and my FULL deposit is still being held by Fidelity Title.
Anyone out there? I want my CASH!! I’m waiting for a response from developer, My lawyer filed the complaint a few weeks ago. IS anyone even living in this building yet?
Everyone has gotten quiet on this blog. Many have probably settled with the developer and as part of the settlement they have to cease talking about the bldg. I know for a fact a good percentage of the cases filed in court have been settled and many others who haven’t sued have been contacted and offered settlements.
Hi Tedd, it has been awhile since I have blogged here. I am using Robert Cooper. He has responded with the same miserable counter of 20K. Are you sure that the escrow agent still has the full deposit? If so that’s luck.
Yes, I have personally confirmed with Fidelity that they have my full deposit in escrow. The developer never touched it for some reason. We still have not received an answer to the complaint. IF they do not respond hopefully we will
win a default judgment.
I recently settled some claims. I used Ely R. Levy for several condominiums that I couldn’t close on. got in over my head in the boom like everyone else. He is with the Militzok & Levy firm (www.mllawfl.com). He was very responsive and did a solid job in recovering a good portion of our deposit for us. I would recommend him.
Sara,
Did you settle with Cynergi, if so what were you able to recover? I’m waiting for them to respond to the action my atttorney file almost a month ago. This building is a disaster.
Anyone have any new info? My lawyer received a ridiculous offer of $20k to settle. We have to serve the lawsuit on the secretary of state since The developer is hiding out and does not have an office anymore, or at least not one my lawyer can locate.
Have your attorney contact Cynergi’s attorney. I’ve heard others say they can’t find the developer at the address anymore. The attorney information is:
Fran Zion
Fromberg, Perlow & Kornik, P.A.
18901 NE 29th Ave, Suite 100
Aventura, FL 33180
305-933-2000 [email protected]
The developed went into hiding so they can’t be served any more lawsuits cancelling contracts. It’s getting so bad that the lawsuits are going to the secretary of state because they can’t be served. Luckily some swift process servers have found izahk at his home address and served him there.
I know some people have settled for pennies on the dollar. Don’t give up especially if the developer holds your full deposit. The longer they try to fight the higher their legal bills will be. It’s a travesty what they’re doing and they should be held accountable. Accountable for switching out finishes with lesser quality ones. Held responsible for the delays. Held responsible for violating ILSA. Held responsible for committing fraud by taking money out of escrow after being served with a lawsuit. For those suing or think g about suing. Don’t give up. Be vigilant
Its gotten quiet out there. I’m assuming everyone has settled with the developer for pennies on the dollar. That’s too bad because the developer has taken advantage of everyone and there is no reason why all contract holders don’t get their full deposit back.
Cynergi has been foreclosed on and is now owned by Banco Popular. Banco Popular has sold it’s “note” in the building to another company who will take it to auction in March. Everyone should either have already been refunded their contract deposits or in the process of settling
cynergi has gone from being an overpriced loft oasis to…full fledged rental project. i say this with all sincerity – don’t be surprised if it turns into section 8 housing.
I believe it will be turned into rentals. I dont think the bank can sell the building to recoup it’s costs and whoever buys it probably won’t be able to sell the condos in this market. Also with the implosion of Midtown Miami and the area not gentrifying into a more desireable area no one will buy a condo when it’s next door to a crack house
Hi everyone, just discovered this blog- am interested in renting at Cynergi. My agent noticed only four units available to rent at present- any idea why, since so much of the building is vacant??
The ones listed are all over 1000 per month, which is my limit- if anyone has a unit they would rent for a one year with option to renew for a second year at 900-1000 per, then I’m interested.
I have owned a web-based business for over a decade now, and am opening a design studio/furniture gallery in the design district later this year.
I sold my bricks & mortar gallery with inventory in North Miami last year- I like Cynergi’s location, and want to be close to the new store.
Jeff –
There’s a bunch of units available for rent, I think the smaller ones (priced under $1,000) have been rented out already but they have a leasing office onsite. Its worth it to visit the building with your realtor and see what they have for you. Their number is 305.573.6768 and their website is http://www.cynergilife.com.
I was over today to look at the units in Cynergi. I was very disappointed. The building is definitely not finished AT ALL and the units are way overpriced considering the location and the condition of the building.
The building is now owned by a Venezuelan family, not a foreclosure anymore. I wouldn’t pay more than $1000 to live there … Not worth it at all …
There are 94 units there, about a 50% occupancy, lowest at $1140.. the pool and gym are not completed so they are offering $25 discount for each (pool and gym), $50 total off your rent until completed. I haven’t seen the units yet… I would like to check them out and see what the units look it…
I was doing some research on the fact that the square feet that has been mentioned in the modified condo documents are false. My unit is off by about 150-200 sqft. It seemed smaller than what was advertised.
Anyways, I rent here. Actually, I kind of like it. I love the floors and ceiling, and my unit has about 17 windows. I also have 2 huge balconies.
Yeah, maybe I am overpaying, but believe me I like the location a lot, and I prefer it much more than a 700 unit condo like Quantum. This is a boutique condo and it feels like it.
Parking is a snap too – no dreaded valet service to screw up your car and make you late for appointment, and a garage that is very easy to get in and out.
Within walking distance to a lot of restaurants and shops.
Maybe as an investment in 05, it was overpriced – but as a rental in 2010-11 it’s not bad.
I have lowered my asking price to $345,000, which I feel offers any buyer a good cushion given current market conditions. I will consider all offers
as I’m trying to liquidate all my investments in florida.
Well guys, I rather remain anonimus for now. I know the developer and they are running out of money. There are still approx. 30 unsold units plus the one that will not close. I am a real estate appraiser and have purchased a unit in Cynergi. I have confirmation from other reliable sources that the developer is putting very cheap finishes in the baths and kitchen essentially reducing the value of the entire building. It is a fact that the developer will try to sell the remaining units to an investor (volture funds) at substantial discount. When I bought the unit in July 2005, I went to the sales center and purchased the unit based on the finishes that were exhibited in the model. The unfortunate thing is that I did not make sure that those finishes were stated in the sales contract. About 2 months ago I was contacted by the developer to choose the upgrade package. I was told that if I wanted the “nice” kitchen and bath, I would have to pay for this upgrade. I believ we have been duped and I am trying to organize a lawsuit to get our deposit back. I can assure you that the prices we have paid in 2005 are a thing of the past and that today we probably can expect a 20% value reduction. I am strongly considering walking out of this deal unless we can succesfully get our deposit back.
Thank you for your input. It sounds like you have a strong case for a class action lawsuit. A few months ago I heard about the developer downgrading the kitchens and bathrooms in the project. However, I thought that they were only downgrading the units for those that were unsold. This is news to me. Thank you very much for your contribution.
John dow, I too am a buyer at Cynergi and I can confirm 100% that the developer has downgraded the finishes in the units. I was also told to come in to pick out my upgrades and when I saw them I said those aren’t upgrades those are the standard finishes. I was then told all finishes in the showroom were upgrades to which I replied no they’re standard. We went back and forth and the representative for the developer said the sales people should have never said they were standard and the finishes aren’t stated in writing or the contract. Luckily I had pictures to prove the finishes and emails from the sales people stating there were no upgrades being offered other than the glass tile backsplash and possible sound system upgrade. The developer even changed the tiles in the bathroom from railroad style to ugly tan square tiles. Also the developer wanted to charge $20k for an assigned parking spot. Luckily I called them on it because the contract specifically states a parking spot will be assigned prior to closing. Lastly the contract states the developer can back out of the deal if the unit didn’t close after 2 yrs of signing the contract. Now I know the developer won’t envoke that option because of the market, but there is another clause that could protect a buyer. It states the project has to be “significantly” completed after 2 yrs of signing the contract. Depending on when you signed your contract you could try to get out of your apartment. I personally want to get out of mine and would join any class action suit; whether it be based on 2 yr significantly completed clause or the fact that the developer changed the standard finishes. I was forced to pay almost $10k extra in upgrades just to get the finishes that were shown to me in their sales office.
Evan is already at the 2 yr mark so he might be able to do a law suit to get out of his deal. How do I contact you cause I would love to get out of my contract. I’m at the 2 yr mark on Sept 6th.
I have some more information between how Cynergi currently looks and how it will be delivered versus how the sales people and marketing materials depicted it. This is enough grounds to get out of the deal (in my opinion):
1. Original closing was supposed to happen Winter 2006
2. Then pushed back to early 2007; now late 2007
3. Balconies are supposed to be industrial finished railings fabricated of steel mesh and polished metal. Current balconies are aluminum painted white.
4. Balconies are supposed to be a minimum of 8 ft deep
5. Adjoining 5 story garage is actually equal to 6 stories. My unit (on 6th fl) was supposed to overlook the pool and now looks onto the garage.
6. Walkway to the pool area is flat in all pictures but actually slopes up now.
7. All appliances, cabinets, vanity and sink in the showroom (see pics) are standard. In early 2007 the developer informed us to pick out upgrades and now the standard finishes in the showroom are upgrades.
8. Was offered to purchase an assigned parking spot during the upgrade selection but all parking spots are assigned at or prior to closing
9. Bathroom is supposed to have floor to ceiling white subway tiles and floating vanity and steel bowl. Instead they’re sq tiles in beige/tan
Hi Brian, I am very concerned about this project not only based on the fact that the market has taken a serious downturn, but also because of the reasons you stated above. I read the sales contract several times. The first item (in big bold letters ) is that the developer has the right to use the first 10% of the deposit towards construction. The next items, also in big bold letters, is that the developer has the right to use “all’ of the deposit providing for some “assurances”. Whatever that means. In other words, they will use all the deposit moneys towards construction.
Additionally, aside from the pictures of the finishes you took at the sales office, nowhere does it state what finishes the developer was going to put on the unit. The sales broshure says nothing, the contract says nothing. As a first time buyer of a new construction condo, I did not bother to have the developer state the kitchen and bath finishes, type of appliances, and parking space number, etc. on the sales contract at time of signing.
In other words what chance do we have to win a lawsuit against the developer?
I believe what might happen is that if enough buyers walk out of the deal, then the developer will turn the project back to the lender at which point they (the lender) will resale the units to the public at a short sale between $250 and $300 per sf. I beleve we paid about $350.00/ sf
Lastly, we should find more Cynergy buyers and share information.
thanks
“john”
I agree with all your points. No where in the contract does it state what appliances or finishes are in the apartment. What we do have is the sales brochure which states the bathroom finishes and the pictures which shows the standard appliance. On top of that I have an email from the sales people that the developer isn’t offering any upgrades other than the Glass tile backsplash and the bose sound system. That means everything else is standard which we know isnt the case because we had to pay for those as upgrades. Lets assume the developer used the deposit towards constructions, if the contract is cancelled, either by the developer willingly or by the court then those monies will have to be returned.
I would love to get out of the deal and I spoke with Evan and he too wants to get out of the deal as well and will consider legal action (as will I).
Hello Brian and John. I too have a contract to purchase a 1-bedroom 7th floor unit at Cynergi. What I am reading here is a real eye-opener to me. I too paid for the $10k upgrade package and do recall noting that what was being “sold” to me as an upgraded bathroom vanity was what shown to me and what I expectrd to be standard…even the appliances!!! I took pictures too and was drawn to the subway tiles and floating vanity sink too. This now sounds like the good ole’ “bait-and-switch”. It’s actually funny…now I can se why the sales agents aren’t returning my calls….hhhmmm…. What you mention about he balcony finishes really kills the look of the building and with the situations with the downgrades, will really affect the appeal. I am plannin on going down to Miami next month and was expecting some exciting news about Cynergi. After reading these posts, I’m concerned about what is happening with the project. Do either one of you have any additional information as far as what recourses Cynergi buyers have? I would definitely be interested in discussing this further with you both.
Regards,
Rich
Just wanted to add some additional information….I was also in contract with the Soleil Miami project and was able to get out of that deal after two years(I entered into Cynergi and Soleil at the same time in 2005). The issue with Soleil was that the city did not approve the plans to build the project as stated to buyers and therefore evoked the “opt-out” clause of the contract. That one was easy since it came from the developer. You all should take a look at the Nightline ABC report on the Miami condos and how many investors/buyers are suing to get out of their contracts as the projects are not being finished as promised. http://abcnews.go.com/Nightline/story?id=3362215&page=1
Just wanted to give you all some additional informaiton. Check out the ABC Nightline report on Miami condo buyers who were suing to get out of their contracts because the projects are not being completed as stated. http://abcnews.go.com/Nightline/story?id=3362215&page=1
john Dow, how do we get in touch with you to organize a possible class action suit?
I as I stated above, I know the developer well. I am meeting with him at the site next week. I will ask him all the important questions about the finishes, upgrades, est. time of completion, etc. etc. If you have a specific question to ask let me know and I will ask him. Insofar as a lawsuit, I believe that the first thing we must do is to find as many unsatisfied Cinergy buyers as we can. I will try to get some more answers from the developer.
Again, if the deposit moneys has been spent on the construction, how are we going to get it back? Is there a way to find out from the escrow agent what percentage of our deposits is left?
I will let you know more once I meet with the developer next week.
thanks
can you drop me a line directly? Lucas can give you my email address. I would ask the developer about the balconies not being the mesh polished metal. I would also ask about the height of the garage higher than 5 stories since it was supposed even with the 5th fl. I would also raise concerns over the bathroom finishes since they’re nothing like described (floating vanity, subway tiles, stainless steel sink, etc).
John, so what happened during your meeting with the developer?
We could not meet this week. I will try for the next. In any event, we should be prepared to go forward with litigation against the developer. I was referred to an attorney that handles these cases. I will give him a call on Monday.
thanks
keep us posted as to what you find out this coming week with the developer. Also let us know what happens with the lawyer.
Can you drop me an email directly? This blog could be monitored by the developer and we don’t want to reveal potential strategy
john, whats the scoop? did you meet with the developer?
i bought an loft and definitely want out!!
if you are doing something please let me know asap.
It appears that Cynergi is offering a free mini cooper and discounted closing costs if you buy a loft. Maybe we should all tell them if you want us to still close on the unit we want the same offer
I have bought a 1/1 at Cinergy in sept.05 and also want out.
Please contact me via email to discuss a class action or other ways out.
Instead of offering a mini cooper and discounted closing costs the builder should put that money toward finishing this project the way it was intended!
One more thing John Dow since you are an appraiser do you think that the unit will appraise at the asking price?
No bank will give a loan on a unit that does not appraise and since the contract is based on cash deal we could be in a big mess!
Honestly I don’t think this John Dow will help much. His story just doesnt add up. Supposedly he’s friends with the developer, yet he’s suggesting a class action lawsuit? If he was friends with the developer I would think the developer would let him out of the contract. Also John Dow has never posted another entry on this blog even though he was supposedly going to meet with the developer. Something’s fishy with him or maybe it’s just the developer in disguise trying to get information from disgruntled buyers.
I don’t know if a class action suit would work since everyone purchased at diff times and some people may have different issues than others. In my situation the balcony size is incorrect and the height of the bldgs are different. My unit is on the 6th fl overlooking the pool. If you drive by now the 6th fl now doesn’t look over the pool anymore. Also in the condo docs there are blueprints which lists the bldg heights and there is a diagram of the walkway that connects the two and it’s shown at a decline yet in actuality its at an incline now.
The developer needs to close on these units otherwise they will be in default of the loan they took out on the bldg. The last thing anyone wants is the developer to declare bankruptcy and then we now have to fight with a bank who has a lien on the bldg as well as the purchasers who have a potential lien. It might be in everyone’s best interest to close on the unit but maybe contact the developer to renegotiate the price to reflect the current market conditions or get a mini cooper which is roughly $25k.
Also everyone might want to take a look at this website which has an agreement with the developer for a free mini cooper :
http://www.hotpreconstruction.com/index.asp?action=detail&category=regions&id=47&project=194&nav=4®ion=1
Take notice the common charges. It’s very low at .36 a sq ft; maybe the developer has managed to lower the expenses to keep the monthly charges lower than originally planned in the condo docs.
I Brian, sorry that I did not respnd to the blogs since August. I can assure you that I am not the developer in disguise. I did meet with him and inspected the unit and the building a few times.
I have not responded to any blogs beacuse I was not sure if I was going to buy the unit. At this moment I decided not to close on the unit. I will be in touch soon
I have already been in touch with an attorney who has found several flaws in my contract. Most importantly, the developer was to have scheduled a closing no later than 6 months past the “outside date” which is 2 years beyond the date of execution. I have a very powerful attorney who would love to take action and the more we have the stronger the case. Anyone interested email me back at [email protected].
Any updates? For those that have decided not to close, how/what have you done to confirm that? Contacted lawyer? Spoke w/ developer?
Still undecided.
i have a unit there as well and the changes are considerable, i was supposed to have this big windows from floor to ceiling and now i have 2 tiny windows and a lot of wall. i know the firm rep the developer(they re pitbulls, word on the street is they ready to fight anyone trying to get out of the contract, however the 2 yr option for those that can take advantage of it seems like the best way out, mind you $$$ will be spent on lawyers, fight might be a long one.
Having floor to ceiling glass changed to two windows is a MATERIAL CHANGE to the original design. Material change is sufficient to cancel the contract, but it would take a lawyer to bring this up and you would have to “fight” to get out of it. In this market all developers will fight to prevent people from cancelling their contract, but if you have a legal justification for cancelling then a lawsuit is the only way out. It may take time, it may take money, but if you have legally recognizable reasons (material change (such as sq footage, changes in windows), 2 yr closing clause, violation of HUD ILSA regulation) then it could be worth the gamble to sue.
My greatest concern is that on the sales contract the developer has the right to use all of the deposits. (10% +10% providing certain assurances(?)). Is there any moneys left in the escrow account. Has anyone contacted the escrow agent to see if there is any moneys left? I believe that there are going to be sveral buyers pulling out of this deal. The developer is not going to be able to pay off the loan and most probably will go into default.
From my understanding of the contract 10% can be used for construction and 10% is held in escrow. Regardless of the developer going into default as a contract holder you should have a lien on the apartment. So if you sue to cancel the contract and the verdict is in your favor the court will order the escrow agent to release funds. If there is no money in the escrow then I would think you would have a lien on that actual apartment unit for which you were in contract. The developer (or bank) wouldn’t be able to sell that unit until the lien is satisfied.
i saw the building this past thursday, went inside the units and have to say that i was extremely disapointed by what i saw. finishes are so far very poor and the units just dont match to the $$ paid for them. I can oficially stated that if you bought at cinergy i’ll take many years before you can make ur $ back let alone a profit….
Since you went inside…how “finished” are they? When do you think they will close? Did they give you an estimate on closing dates? What was disappointing about the finishes?
they are pretty much done with it, the units that are not penthouses have the industrial finish, the penthouses have the regular condo finish becuase the city didnt allow pipes to run through the inside of the unit, (insulation of the roof)i heard. the building should be closing in about 2 to 4 weeks. E levator is working, and the whole 9 yards. however if certainly doesnt look like the idea i got from the showroom when i bought it, it looks cheap, with cheap finishes…..
Is anyone interested in joining forces to fight the developer and get out of the contract?
Can anyone recommend a R.E attorney in Miami?
Do you know if any closings have taken place and how much the units appraised at?
Feel free to email me at [email protected] with any suggestions or comments.
Everyone,
I would look into the attorneys at D|K PHILIPS, Attorneys & Counselors at Law. I understand that they are the most effective firm out there.
Brian
When you say finishes are disappointing, can you expand on this? Also, what about pool area, lobby, gym, garage. Are these also near completion? Last time I visited the site, they were nowhere near done, and this was in early January. Who told you 2-4 weeks til closings?
Has anyone had success with any real estate attorneys?
Thanks
Does anyone know the status of the closings at Cynergi? Has the developer contacted anyone regarding a closing date?
Is there a local attorney that is handling any cases at Cynergy ?
thanks
I don’t think the developer has contacted anyone regarding closings yet. Not sure what the hold up is. Per the contract closings can’t happen unless 15 days notice is given…so the soonest possible time closings can happen would be March 1st.
It sounds like enough people on here want out. I’m sure a class action suit can be started with everyone claiming they violated the 2 yr completion clause of the contract and the fact they substituted finishes and appliances of lesser value/quality than what was described/marketed in the showroom. They’ve also violated HUD ILSA.
Brian, from your posting on Jan 14th you mentioned the cheap finishes…can you describe or elaborate?
Has anyone contacted D/K Phillips attorney at law in Miami? I called them to schedule a consultation but they will charge a consultation fee. I do not mind paying it, but I want to make sure that someone has not done already so. Has anyone contacted any other local attorney?
thanks
by the way: Midtown – 5 active listings for one bedroom units range from $229K to $250K approx 800 sf.
I contacted Hoffman & Hoffman attorneys in Miami. They will work on contingency but will retain 40% of money recouped and 10% of the down payment if not all has been used for construction.
I spoke with the closing coordinator who said she would keep me informed by email as closing approaches. So far nothing! I believe that the longer it drags the better off we are.
Steve have you contacted D/K Philips?
What have you found out?
40% of money retained and 10% of deposit,seems like a lot to me. have condos come down about 30 to 40 percent in value? how is that a good deal? hoffman & hoffman you’ll never see me again.
i will post the info about the law firm i will visit on friday, they’are not that expensive, the key is to save as much as posible from the original deposit, giving it to the developer or the attorney is the same to me.
Has anybody been contacted about closing on the unit?
You might want to see if one of the best in the business has anything on Cynergi.
MICHAEL J. SCHLESINGER
Phone: 305-373-8993
Where did everybody go? The building is ready and it is crunch time. Has anybody decided not to close on the unit? let’s get some feedback. I decided not to close.
I have decided to close and ride the tidal waive.
I just don’t want to walk away from the money that I have invested in Cynergi.
I have not heard from the closing coordinator yet.
I would love some feedbacks from all of you!
Corinne
I asked for a walk-thru of the unit but the developer said they’re not ready yet. Based on that closings will not happen for another month at least. I don’t know whats holding up the closings…there has to be something going on.
Here is some potential good news for people who live in NYS and purchased condos.
As reported in the Miami Herald and the South Florida Business Journal, the New York Attorney General’s Office recently ordered developer giant The Related Group to refund preconstruction deposits to buyers who were marketed and sold certain Florida condo units in New York State.
The directive was issued under a New York statute called the Martin Act, a provision of which makes it illegal “to make or take part in a public offering or sale in or from the state of New York of securities of participation interests or investments in real estate,” including condominium units, unless the offering or sale has been registered in New York. See N.Y. General Business Law section 352-e. By way of background, the Martin Act is an old law dating back to 1921 that grants the New York Attorney General rather broad prosecutorial powers, and, in fact, disgraced ex-Governor Eliot Spitzer prominently made rather expansive use of the statute during his days as Attorney General in prosecuting various securities frauds.
From the news reports, it appears that Related is being given an opportunity to respond to the Attorney General’s Office and challenge its finding. One may wonder what kind of power the New York Attorney General would have to enforce its mandate, although it would seem that if push came to shove, the Attorney General could seize any assets held by Related in New York for purposes of enforcement. Also, while the Martin Act does not itself allow for a private cause of action (meaning that only the New York Attorney General can enforce the law), it is important to bear in mind that the Florida Deceptive and Unfair Trade Practices Act (”FDUTPA”) is broadly worded insofar as ”any law, statute, rule, or ordinance which proscribes unfair methods of competition, or unfair, deceptive, or unconscionable acts or practices” may serve as a basis for a violation of FDUTPA. Because FDUTPA, unlike the Martin Act, is privately enforceable, buyers who have been aggrieved under the Martin Act could conceivably sue on the basis of these violations in Florida court under FDUTPA.
Attorney MICHAEL J. SCHLESINGER will not take in cases as they are too busy. Any other suggestions? Does anybody know any other attorney that is handling Cynergy cases?
Not to be too pessimistic but there are a good number of brand new buildings selling one bedrooms at around $300.00/sq.ft with better views and quality. Cynergy is selling for $450.00 s.f for inferior quality of construction. Be aware of the square footage represented by the develper. I believe the unit is considerably smaller than what is stated on the brochure. Did anybody get an appraisal report back from a mortgage company after applying for a mortgage? good luck……..
where did everybody go?… anybody alive?
schlessinger is one of the best in the business? wasn’t he at kluger some time ago? why did he leave?
has anyone contacted the developer to renegotiate their contracts and purchase price?
I’ll bet that the developer is playing hardball. My belief is that they will close as many units as they can at the original price. The rest of the unsold unit will be rentals or they will be transfered to the lender. 1 bedroom unit are selling in this market area around $250 sf. It will be years before you will recoup your of $350 to $400 a sf investment
You guys might want to contact the developer; I drove by the building today, and there are NO finishes in the units, construction has ceased, there is a fence around the property and a sign that says the building is for lease for sale.
I am concerned about this too. Any additional insight people can share would be helpful.
worse case scenario we all get our 10% which is in escrow and the fight to get the other 10% back if they go bankrupt
Can someone please confirm that construction has ceased????? This is huge. Poor Observer do you have a picture something to verify I am out of town and really want to know. Thanks for any current info.
If the sign says for sale or lease..then I may have already been foreclosed! How could that be a developer sign when he has contracts for individual units?
Any for lease sign probably relates to the retail stores on the groun level. Also the developer may be selling retail space as well and could be leasing apartments that aren’t in contract. To my knowledge the developer is still solvent, but may be having problems getting their certificate of occupancy. The fences have to remain up until they get their CofO.
I spoke to the developer’s secretary. She said that closings should begin in about 30 days (I wonder if it is true)
Insofar as the fence is concerned, I agree with Brian. I believe that either they did not get the C/O or they are leaving it there for security reasons. The buy or lease sign is for the stores.
I also checked the Miami-Dade county records and saw no liens against the developer.
Cynergi has obtained the c/o. it just need another formality from the State and we can then move forward. Closing notifications are to be mailed out within the next 10 days.
The developer is still way behind scheduled completion of the building. Does anyone know what it means? Will he have to pay penalties?
Has anyone spoken with an attorney?
Where do we stand?
Corinne, who did you hear from that Cynergi for their CofO? What “formality” did it need from the state. The developer is most certainly late; most owners have signed their contracts 2.5 to 3 yrs ago. I think everyone either needs to renegotiate the contract with the developer, walk away from their deposits, close on the unit or sue to get out of their contract.
Closings can not happen until late May at the earliest. Once notices go out it has to be at least 30 days before closings can be scheduled.
What does the contract say about the buyers’ rights should the seller not deliver the unit within 2 years?
Buyers should not be allowed to walk away without losing their deposits if the seller delivers what they promised. But buyers should not be expected to keep their lives on hold indefinately, beyond the promised delivery date.
Because to the change in credit availability, many buyers that could have closed within two years of the contract, could no longer close or only more expensively with higher down payments or higher interest rates. The contract probably does not have a financing contingency.
IF YOU WANT TO SEE THE PROGRESS IN THE PERMITS GO TO:
http://egov.ci.miami.fl.us/MiamiBuilding/Address.aspx
ENTER: 2700 N MIAMI AVE
IT SHOULD WORK
The fence is down! My husband went by this morning. He actually drove through the parking lot before he was stopped by a woman who said they are planning a gate for the upper levels of the lot but the city has mandated that the bottom level be open to the public – sounds like bull to us – she said if we want fencing, we will probably be able to do it through our association. This could be completely untrue as we (pre-const buyers on the top levels) have not been able to get call-backs. She said only appraisers can enter the building now. Next will be owners with their walk-thrus in a few weeks – that usually means months with these people. Has anyone found a lawyer worth working with on this?
Attorney MICHAEL J. SCHLESINGER will not take in new cases
Attorney D/K Phillips will charge you a consultation fee
attorneys Hoffman & Hoffman. did not contact them yet.
Wow these prices are crazy. I would hope the developer is begging people to close and giving generous discounts
SBKI you wish!
The generous discount has to be half off the original price. As I said before, they are playing hard ball. Closing at the developer’s original price is suicide in my opinion. The neighborhood unfortunately got worse, and the condo prices have plummeted with no end in sight. Not to mention the overall poor quality of the finishes and overstated size of the units.
I had contacted Hoffman & Hoffman. They charge $300+ an hour or on contingency 40% of the money that they recoup from the builder.
That’s highway robbery to me!
I was told by my loan officer who was contacted by Janet closing coordinator that Cynergi has obtained their c/o.
Corinne, I believe that something is better than nothing. I certainly not planning to close.
By the way, take a good look at the appraisal. I would be curious to see if the appraisal came in at value.
has anyone received an appraisal on their units yet?
Does anyone have a contact name and number at Cynergi?
Contact at Cynergi: try Sheila Diaz 954-239-0327 or at [email protected]
I don’t think I will be closing on my unit either. The market is insane in Miami….we would be holding the condo for a real long time before we recoup any type of equity.
so I guess no one has gotten their units appraised? Has the developer contacted owners for a walk-thru? I haven’t received any notification at all yet.
Just got a notice of closing on 5/20. Did anybody elese get a notice from the attorney’s office?
there are 4 people suing cynergi, i’m included there, their lawyers dont even bother in returning calls, so we just suit them……..the owner changed his office address, and guess what nowhere to be found to deliver the letter to him as well, they used!!!!!!!!!!!!!!!!!!!10 % of the deposit for constructions as stated in the contracts, their lawyers are pitbulls however they went over the 2 year mark for completion and thats a plus for us, my lawyer isnt a charging a huge fee, 20% if he doesnt need to sue and 35 if he does, $1000 retainer fee, the way i look at it, the only way the appraisals come in range with the price is because the developer is doing some cash closing in the units first to bring the value up, cheating!!!!!!!!!!! and then when you close you’ll be left holding the bag, maintnance fees will skyrocket when more than 50 % close, forget the 36cents per sq footage, i cant close, i wont close, i rather fight.
i’ll keep you post it.
Steve, you mentioned you got a closing notice for May 20th. Did you just receive that notice? Correct me if I’m wrong, but the developer is supposed to give 30 days notice before a closing. If you just received notice, then closing should be 30 days from that date.
Fraud Fraud, as of today I only see 3 lawsuits against the developer. Has your attorney filed yet?
Has anyone received appraisals?
The other 10% will be in escrow, developer cant touch it. Best case your attorney will go after that 10% after suit.
Some contracts have a clause that any deposit over 15% of the purchase price will be returned if buyer defaults.
I would expect an attorney could go after the excess of 15% with less work and for a flat fee. best blog in miami re suing developers is Jared Beck. I think Lucas has a link off his front page
Brian, the notice is date May 5th for closing on May 20th. In any event, I retained a lawyer who is already working on a couple of Cynergi cases. His name is Robert Cooper. From speaking to the assistant, it appears as if they understand the situation. I suggest to contact them so that the greater the cases the easier is to litigate.
Insofar as the deposit, read the contract carefully. The developer has the right to use the first 10% towards constrcution and also the next 10% providing he gives certain assurances (It’s in bold letters in the front of the contract). I will bet anything that he has used all of the deposits towards construction.
It’s crunch time . We must all stick together and not close.
Steve,
You said: “I will bet anything that he has used all of the deposits towards construction.”
I’m not involved in Cynergi and would have to use GPS to find it, however, if your deposit was 20%, the developer, by law, was to have deposited one-half of that (10%) into an escrow account. If you default by not closing, you are entitled to one-half of the escrowed funds PLUS all accrued interest.
So if your deposit was $80,000, yous hould be entitled to a refund of $20,000 plus all accrued interest on the $40,000 held by the escrow.
Jared Beck, Esq. notes this on his blog:
“Another important factor driving the condo litigation upsurge in Florida courts is the protection afforded by Florida condo law to buyers’ deposit monies. The key Florida Statute is section 718.202. The statute provides that all deposits up to 10% of the purchase price must be paid into an escrow account and held there until closing (any deposits above 10% of the purchase price may be released to the developer, but only “in the actual construction and development of the condominium property,” and the purchase agreement must disclose this possibility). And particularly relevant given current market conditions, the law also forbids the escrow agent from releasing any funds to the developer where “prior to the disbursement the escrow agent receives from the buyer written notice of a dispute between the buyer and developer.” The only exception to the escrow requirements set forth in the statute are where the developer files proof of acceptable “other assurances” with the State of Florida — such as a surety bond or an irrevocable letter of credit — to secure the buyers’ deposit funds.”
Hope that helps.
as you state: “any deposits above 10% of the purchase price may be released to the developer, but only in the actual construction and development of the condominium property, and the purchase agreement must disclose this possibility)”
But it is in big BOLD letters in the front of the contract that the developer may use the additonal 10% towards construction providing he gives ceratin assurances. I think this means that he can take the additional 10%. The question is what are these assurances? a bond perhaps….
by the way….. if you intend to close, make sure that all the mechanics liens have been satisfied and paid in full before the C/O. I just noticed a large mechanics lien of $90,000 from an unpaid balance. Other liens may follow…
Steve,
Check the “Default” Para. in your Purchase Agreement. As an example, Paragraph 13 in Related’s contracts driectly state that if buyer put up 20% deposit (10% was escrowed) and then did not close, that buyer would be entitled to the equivalent of 25% of deposit plus all interest accrued during escrow.
The “big, bold” “ANY PAYMENT IN EXCESS OF 10 PERCENT…….” is on Related’s contracts as well.
Make sure if you are filing the claim, to serve notice on the escrow company insisting that they do NOT release any funds from your segregated escrow until claim is resolved. That will “wake up” the developer.
I just spoke to the attorney that is handling other cases in Cynergi. He sent a demand letter asking for the amount held in escrow for one of his clients. The escrow agent sent him a response letter saying that all the moneys held in escrow have been released to the developer…..
Steve,
What is he preparing to do about that? That does not sound good. The escrowed funds aren’t supposed to be released to anyone until after the closing.
This is what I was trying to tell you. I believe the money is gone. they have used it towards the construction. He probably had to put up a bond for the 2nd 10% deposit. It will be awhile before you will see a penny back.
Steve,
Check with the attorney about filing against the escrow company. They may have broken the rules in releasing the escrows prematurely and they have deeper pockets than the developers.
I dont know in other cases in my personal case, my 10% is still with the escrow company, call them and find out, if you close you are dead, i saw the building inside and the kitchen and the bathrooms are definitely cheap, they just dont look right, specially when you paid close to 500 per sq footage, dead end for sure.
My attorney is filling the lawsuit this week, i thought it was already filed. Remember if we all stick together our lawyers most of the cases are worked on contigency basis, the developer is paying his legal team a lot of money, they have to settle or else face a mounting debt.
Can anyone recommend an attorney that works on Contingency and is already handling cases in the building?
Brian- have you made and progress with Marci and your lawsuit?
I have confirmed my 10% hasn’t been released from escrow. My attorney has served notice to the escrow agent that I’m in dispute and they are not to release the funds until the dispute is rectified.
Steve, Cynergi is in violation of closing. In the contract they must give 30 days notice for closing. May 5th notification means closing can not happen until June 5th.
Fraud fraud, did you do measurements of your apartment to see if they differ from the condo docs? Is it true that the exposed A/C duct work is now enclosed?
They really cheaped out on the finishes. What they put in the apartment is nothing like they had in the showroom or condo material. Unless you upgraded your finishes (finishes that should have been standard) then you’re left with an apartment with really cheap and shitty finishes. The developer has really shot themselves in the foot with this one. They’re opening themselves up to lawsuits just from the changed finishes and possibly altered apartment size. It wouldn’t surprise me if the developer goes bankrupt, especially if there are a lot of lawsuits.
Brian,
My attorney Robert Cooper 305 792-4343. They work on a contingency basis. They are the ones that told me 10 day notice not 30 days. In any event I think that the developer is doomed. As far as I can tell, they originally sold only 70% of the units. I believe that there is going to be at least another 20 that will not close, plus the ones that want to close but cannot get the appraisal high enough to get financing, and so on….
Insofar as the measurements, the condo docs are correct. What’s not correct is the developer’s representation of the square footage which is at least 15% smaller.
Most importantly, there are now several mechanics liens recorded. I don’t think the lender will allow you to close even if you want to. Ask your attorney.
Evan,
Robert Cooper is handling 3 or 4 cases in Cynergi. Call him.
Did anybody get the notice to close?
google Robert H. Cooper
Look folks, you are not going to get a penny back. Those real estate contracts are buttoned up tight. The developers used well-known “previously litigated” real estate contracts that you signed.
When i took my bar examination in Florida this past February, i had dinner with several out of state attorneys that were moving to Miami to take “advantage” of people trying to get out of their real estate contracts. It is a quick and easy buck for any attorney, even if the client loses.
It is all a racket, as is Miami. And now the attorneys, aka sharks are beginning to bottom feed what is left of the busted real estate market in Miami.
I am on my way down to Miami this year. But not as a real estate attorney. Rather, i want to get into prosecution. Because, financially devestated Miami is set to explode with crime. And it will be the best city in the world to gain this type of legal experience. In fact, soon to be prosecutors are flocking throughout the country to prosecute crimes in Miami.
Nevertheless, My heart goes out to all that lost in Miami’s horrific ponzi scheme.
Good luck, and God bless,
P.S.
Remember, in civil cases, plaintiff mostly lose, in more ways than one.
Does anyone know what happens with the deposits still on hold in escrow if the develop files for bankruptcy?
Evan asks:
“Does anyone know what happens with the deposits still on hold in escrow if the develop files for bankruptcy?”
As the developer did not deliver “clean” title to the RE (condo), I believe the segregated escrow account would be under the control of the BK court. As such, you would have a BK attorney petition the BK Court for a full return of the one-half of your (10%) deposit, without having to go through a litigation and BK lawyers normally get an hourly fee from you NOT a 30%-40% contingency.
Better yet, YOU should be able file your BK claim yourself and present it to the court yourself, circumventing the need for a BK lawyer.
I forget the condo case, but a few months ago one went into BK and the 10% deposits which had been escrowed were returned in full to the “buyers”.
This may be the reason some of these developers drag out the closings…..to have the purchsers in “default” prior to them filing for BK.
I just confirmed with Julie from Fidelity national, that my entire 20% deposit is still being held in escrow. Her # is 954-217-1744 x222
Something fishy there. Not sure how or why the developer has used some people’s 10% for construction and for others they have the full 20% in escrow.
Hello everyone, been following this blog for a little while and I am going to the Title company tomorrow, they can’t give any information over the phone. They did confirm that my money is still in escrow, how much I’ll find out tomorrow.
My attorney has discovered that most people had their full deposit in escrow. Some people had 10% user for construction so my attorney is going to inquire when the funds were disbursed and why
just went to the title company, they still have 10% of my money. The first 10% was redeemed in august 2007. They don’t when the closings start. Their best guess mid June.
interesting how some people have their full 20% in escrow and some don’t. I wonder how they pick and choose
That’s interesting because my notice to close is for May 20th.
Just found out that the escrow agent is holding 1/2 of the deposit. Is anybody scheduled to close this month? Did anybody get an appraisal done?
I used the Law Offices of Nicholas Felzen, P.A. to Cancel my Real Estate Contract and Recover my Deposit for another property and I am very happy with the results as he was able to get me back my deposit and cancel the contract. His contact information is:
Law Offices of Nicholas Felzen, P.A.
3059 Grand Avenue, Suite 310
Coconut Grove, FL 33133
(305) 498-1956
Fax (305) 447-4479
[email protected]
I drove by Cynergi yesterday. It looks like they’re ready, but I noted a few things about the construction. Windows are missing from the garage area. It looks unfinished and needs to be completed. On the pool level the white pergola structures with white drapes has been replaced by an ugly blue tent. There are no exposed air conditioning ducts as described in all their materials. The developer has delivered a product that is NOTHING like the showroom or marketing materials have described.
so has anyone closed? Got an appraisal? All of a sudden this blog just stopped. Any updates?
I am alive!….Brian,that’s what I have been trying to find out. I don’t believe anybody closed yet. I am on hold until I hear back from the attorney. The building is vacant and there is no sign of life yet. The commercial storefronts have no signs. Its going to be a disaster…..
Well you guys my mortgage broken just contacted me to report an appraisal done on someone else’s unit (no upgrades were done). The result is so bad that he wanted to know if he should still order an appraisal for me.
The question is how many contract holders are willing to close and how many will walk away?
The final figure will affect monthly assessment eventually not in the first couple of years since the bldg is new and things should not break down but later…..
Is anyone starting a lawsuit to try to get out of closing?
What would happen if most people walk away?
If builder files bankruptcy?
What are the speculated results of this lawsuit?
Would you get any money back at all??
Is anyone still around???!!!!
If the builder files for bankruptcy your escrow is still secure, whether or not it’s 10% or 20% depends on whether or not the funds were used for construction. The bank would then take possession of the building and then try to force everyone in contract to close. Any units that don’t close will be dumped onto the market at pennies on the dollar.
Have you contacted the developer directly regarding appraisal. If they know you won’t be able to get a mtg because of the appraisal value they may renegotiate the contract if closing means they would still make $$$ rather than having you walk away from the deal.
As far as lawsuits go I don’t think anyone is talking about a class action because all of us signed contracts at different times and some of us have issues besides the 2 yr contract closing date.
Lastly, the developer will be responsible for paying the maintenance on the units they still own. If they own most of the units they may declare bankruptcy because they may not be able to afford to maintain the monthly payments
Brian said: “If the builder files for bankruptcy your escrow is still secure, whether or not it’s 10% or 20% depends on whether or not the funds were used for construction.”
If deposit was 20%, there should be 10% in escrow. If developer goes bankrupt, you can file a secured creditor’s bankruptcy petition directly with the Court to retrieve the entire 10% plus accummulated interest that is in your escrow account as they are segregated. Once it is determined the escrow is “yours”, the escrow company will release the funds to the Court, earmarked for payment to you.
You can either pick up the petition at the Court and file it yourself or get a bankruptcy lawyer…the good thing is a bankruptcy lawyer will charge you by the hour, rather than a retainer and a hefty percentage.
It sounds like the best case scenario would be for the developer to file a bankruptcy. Just make sure you put the escrow company on notice NOW about a dispute with the developer so your funds will stay there until the “dispute” is resolved.
Corinne,
I contacted Robert Cooper and they are working on a few cases for Cynergi including mine. They seem to be on the ball and work on retainer with a typical 33% split for them and 40% if they have to go to court. This is typical for attorneys. You must have them or someone else put a claim on the remaining deposit ASAP before they file for bankrupcy.
Let’s all keep in touch and up to date with daily events.
Thank you for your responses. I will get a bankruptcy lawyer to secure the deposit.
Does anyone know who is the escrow company so that I can contact them?
Steve,
Whatever happened with your closing which was scheduled for May 20th?
Corinne,
I believe it is Bankers Title and Escrow (or Fidelity National Title and Escrow)….i have more than one property so get them confused. It should also be in your purchase agreement and is the person you wrote your first 2 checks out to. I would recommend doing this ASAP before they file for bankruptcy which they are no doubt likely to do considering all of the people looking to walk away or fight it out in court. Also, since the appraisals aren’t coming in, the developer is pretty much screwed. I guess what goes around comes around. Good luck.
The escrow agent is Fidelity
Brian,
nothing happened on May 20th. I contacted the attorney prior to that date and he put a freeze on the escrow, demanding the deposit to be given back.. So far I have heard nothing about being in default of contract.
Is it possible to do an informal poll as to who whishes to close and who does not?
Of course I am not.
I am also an investor in Cynergi project. My appraisal came back very low (about 40% less than contract price). Subsequently I am not interested in closing. I am ready to join others for a collective action.
i would sooner walk away than close. on principle alone. but, if you settle, you’re looking at making a bad investment worse. like going from the frying pan to the oven. cut your losses and either walk away or find an attorney who is willing to take you on contingency. worse case, you lose your deposit….2nd best, you lose your attorney fees. Unless you plan on owning for 10-15 years, DON”T CLOSE! The developer does not deserve your hard earned money anyhow.
F.Y.I.:
The developer has just recorded the condo docs in public records
Enter Cynergi and under Document type enter DCO or declaration of condominium
What’s interesting is that all the surveys included in the DOCS have a date of May 2008.
I left my condo docs with the attorney, so I do not have a copy to compare them to the new one, but if there are any changes to the documents it is one more item to argue about, because they should have given us proper notification.
I checked the new condo docs on the miami website versus the original one and for the most part the dimensions are the same. The big change is the balcony which was supposed to be 12′ deep is now only 7′ or 8′ deep. Also the height of the garage has changed. This affects my unit because my unit should have overlooked the pool but now with the garage taller I look at a wall. This is a MATERIAL change and I was never notified in writing of the change as required. Sounds like a slam dunk for cancelling my contract…lets just see if the judge agrees.
Brian said: “Sounds like a slam dunk for cancelling my contract…lets just see if the judge agrees.”
Sounds like this developer will stall you into court…in about two years.
In the meantime, just in case the developer goes bankrupt, MAKE SURE YOU (OR YOUR LAWYER) PUTS THE ESCROW COMPANY ON NOTICE NOT TO RELEASE ANY FUNDS FROM YOU ESCROW ACCOUNT AS THERE IS A DISPUTE!
Brian,
What about rest of the condo docs. Do you see any changes in the language of the bylaws or maybe under the “dispute” section, or any other section that would favor the developer?
Also, are you sure thet the width of the balconies was 12′ deep. It seems quite a lot. Does the origianl survey show 12′?
This is our first contribution to the conversation. We bought one of the top units and were similarly disappointed when every finish was downgraded last year, and with the lack of communication, long delays,etc. Is this a recurring theme in all the midtown developments?
Has anyone closed in Cynergi? Is anyone planning to? Why has this been such a shoddy operation?
I’ve been reading this forum for a while with some interest…and I feel sorry for you guys that ended up investing in this development. It just goes to show….location and developer reputation is paramount.
in the original condo docs there were no dimensions for the balcony. But in the floorplan I got when I purchased the unit it has the balcony dimensions and mine was listed as 13×12. On the new condo docs the balcony dimensions are listed and it’s changed.
I didnt look at the rest of the condo docs to see if there might have been any changes because there is way too much to read
Brian said: “I didnt look at the rest of the condo docs to see if there might have been any changes because there is way too much to read”
If you want to seriously challenge the developer, perhaps you should shelve that attitude.
There is a reason you have both an “old” and a “new” condo book……CHANGES!
“Changes” are supposed to be redlined in the “new” book showing the old language with the new language added.
The law says from the date you receive the “new” book, you have 15 days in which you can compare it to the “old” book and CANCEL your contract and get 100% of your deposit back, assuming the changes are material and effect you negatively.
I referred 2 cases to the Law Offices of Nicholas Felzen, P.A. to Cancel 2 Real Estate Contracts and Recover the clients’ Deposits and I am very happy with the results as he was able to get the Clients’ deposits back and cancel the contracts. His contact information is:
Law Offices of Nicholas Felzen, P.A.
3059 Grand Avenue, Suite 310
Coconut Grove, FL 33133
(305) 498-1956
Fax (305) 447-4479
[email protected]
Just got a letter, for closing on the 17th of June. Letter was dated May 29th.
Has anyone else received one?
Greetings all,
I too have a contract and have filed a notice to developer to cancel with no response. I do not think closing on this deal is a deal at all. I think from all the responses here, we have strength in numbers and should try to work together as opposed to everyone just blogging and taking separate cases with separate attorneys. A class action may allow us to negotiate the attorney fees.
Looking forward to responses.
Regards,
Rich
The problem is the developers will fight till the end stating whatever changes they made are not material or adverse. It will be very hard to get your money back. Perhaps a settlement may work. Can anyone comment on this?
In response to Rich:
I agree with Rich. Though I am not sure whether a class action suit is possible or not, it is possible to club together and negotiate a deal for attorney fee. I proceeding with an attorney to cancel this contract and if possible get back any money.
Here’s is what I think:
The developers are not big developers with deep pockets. They do not have enough resources to fight everyone in court. If enough of us bring action against them , they will have no choice but to go bankrupt. Remember that they originally only sold 70% of the units. Then, add all the buyers who are demanding their money back with the assist of an attorney, then add all the buyers that want to close but cannot get sufficient financing because of the appraisal being too low. Maybe only 10% to 15% of the buyers will close.
I truly don’t know how they are going to survive other then bankruptcy or they their willingness to renegotiate all the contracts at market value.
Being that the developers are not “big time” it’s ultimately then a losing situation all around. It’s just about “man up” and cut your losses one way or another. No matter what, the attorneys involved with buyers all see a big pay-day with contract cancellations etc. It’s just a matter of how much $$$ each one of us is willing to lose. I think, for some, it’s cheaper to walk away and maybe buy something better and bigger, sit on it, and ultimately make back your loss. But again, we have strenght in numbers.
Has anyone closed in this building yet? Anyone Who does close at there original contract price is probably already in the whole 50%. This building seems like a disaster!! I’m hoping to recover my deposit. I have been in contract for close to 3 years now. According to there contract they had no more then 30 months to have this place finished and start closings.
Sorry Rich but you are wrong.
At this point. The developer can or will ask you to close. If you don’t show up at the closing you are in default and you will lose all of your deposit. At least, with an attorney you may recover something. And something is better than nothing at this point.
Where did everybody go?………..
I wonder who is closing on their units. Apparently some people have. Does anyone have any luck with their Attorney? What are the units appraising for?
Hi everyone! I had a closing date of June 20th but retained an attorney to cancel my contract and get my deposit back.
The builder is in breach of contract since the bldg should have been completed within 2 years of signing the contract.
I got my appraisal back and it is a disaster! It did not appraise. It is smaller than on the docs and the finishes are lousy even with the upgrades.
What a disappointment!!!!
As for a class action it is not so easy because everyone went into contract at a different time and put in different amount of $.
But a better fee can be negotiated when we use the same attorney. The more cases they have to represent, the more money for them and the more damage for the builder!
i drove by this building yesterday. it’s an absolute joke. the fact that they were asking close to 400sq/ft (and that people were taking the bait) is beyond me. i don’t get it. what was possibly appealing about this building, either as an end unit or investment?
The finish product is a disaster but the proposed one, a high end boutique bldg was very attractive.
The whole concept looked great inside and out!!!!!
yeah corinne, but no matter how nice the finished product was advertised to be, the neighborhood was, is and will continue to be for the foreseeable future, a complete dump. i mean, isn’t a central tenet of buying real estate location x 3?
i’d fight like hell to get my deposit back on this. this building looks no different than the cheap condos that were put up on 27th avenue in the grove.
jcrimes,
You missed the point. The property is (or at least it was) in one of the most up and coming areas in the US. Wynwood, Midtown, etc. were all supposed to be developed and the idea was that most of the old structures were going to be demolished or rehabbed. There was a lot of speculation. Unfortunately this market went sour and all the big projects had to be put on hold. I am still a believer of this area. But now we have to wait a few more years.
Steve
i don’t buy that…you start building an outlet mall and a few condo buildings and suddenly the neighborhood blows up in value? three years ago the wynwood area was a dump. cynergi and midtown were not gonna change that nor for that matter, a few more condo buildings and shopping centers. the gentrification/rejuvenation or whatever the hell you want to call it process, even if the boom continued on, would have taken over a decade. considering today’s RE market, i think you’re now gonna have to wait more than a few years for things to turn around.
moreover, i’ve been an urban pioneer before and i can tell you that you shouldn’t be paying a premium for “up and coming,” especially (1) when brickell, a more established neighborhood, was similarly priced during the boom and (2) south beach in the art deco neighborhood topped off around 500 sq/ft. both of these hoods had better current and long term growth prospects and investing potential when compared to wynwood. i mean this is a fundamental concept of investing…the more risk you’re asking me to take on, i should rationally insist on better terms for taking on that risk. the people at cynergi instead paid a premium to take part in a grand social experiment.
heck, the death kneel for cynergi was called long ago when lombardi cancelled pompeii. he knew that even at $300 to $350 sq/ft the neighborhood and price point simply didn’t work out.
i’m not trying to rub it in about people’s choice to invest in cynergi…but i remember when cynergi was announced and it piqued my interest exactly because i had been an urban pioneer before in chicago. when i was told the pricing (from the ridiculously hot girl who worked at the sales center – god bless her) and then drove through the neighborhood at night, i was absolutely astounded. in all honesty, it was at that exact point when i realized the boom was nothing more than a game of musical chairs.
How do buildings like Cynergi get marketed… to whom and where? I can’t imagine a Miami local going for that building when there were so many other better developments on the drawing/investing board at the same time.
Did anybody visit the area or was the buying done solely from a brochure and verbal promises over the phone? I don’t get it. As an investor, why would you take that over Icon Brickell or any of the Brickell Related stuff or the smalltime Non-waterfront junk in Miami Beach Proper?
As jcrimes said, it seems people knowingly paid a higher premium for something that had much more risk than comparable RE investments at the time. I would love to know what the “hook” was by the developer; it must have been 1 sweet story.
The simple marketing is to lie and lie and lie until you get somebody to bite. I have been in the Miami market for a while now, but I also monitored it from afar. Once I arrived in Miami i realized what a gross injustice the developers and RE fraudsters were doing to the industry. They go above and beyond “marketing” and essentially state that certain conditions already exist-24 hr lifestyle, full condos, shops and cafes exist, etc which is an out and out lie. They seem to have forgotten the difference between reality and fantasy, and have no problem promising the fantasy to anybody. It may be legal, but highly unethical. I will give credit to my realtor, at least she was honest and kept me from making mistakes in the hopes of future business. But many others i dealt with were unscrupulous at best.
Well add a bunch f projects to the list remember IOS n the bay. I wen tto the kick off party years ago wow what a great part super glizy all inluencers bar, etc.. nice music rose pedals, flowrs the works bu tlook at it now. empty as hell the buildign is in a shitty location…yes on the bay but surrounded by old crappy houses That project was selling in the 500’s back then. Shit I dnt even know if anyone will close. Any word Lucas? How about City 24 seems empty as hell another overblown project w/ 24 hour lifestyle. Buidling left a lot to be desired nice complete.
IOS is actually really nice. the price point just doesn’t work well for the neighborhood.
I may be very naive but I have working in this neighborhood for over 20 years. I have seen this area go well below anything you can imagine in appeal. Midtown, changed everything.
Say what you want, but the appeal of this up and coming Midtown area (includes Wynwood) was felt by a bunch of people, not to mention large developers who lost millions in marketing, architectural fees, payrolls costs etc. etc. and found themselves having to shelf all of their plans. These are very experienced investors i.e. Onix II, Cube, Midtown, and several others all around Midtown.
Why would these developer invest millions and lose it all in a couple of years? Because they saw the same thing we all saw: Upside. Now, I may be ignorant, but what about people who invested in the Meat Packing District, Harlem, etc. etc. in New York. These neighborhoods were in much worst shape than Wynwood and yet investors made fortunes. I know you cannot compare New York to Miami. However the idea is the same: Get a good return on your investment.
You guys are all monday morning quarterbacks. It was difficult to predict how bad this South Florida market would do.
The real problem is not Wynwood. It is the economy in general. Investors have seen huge condo losses all over Miami and we are not talking a couple of thousands of dollars.
The bottom line is that Wynwood is potentially a good area to invest. Now is probably the best time, in that property values are depressed.
In conclusion, do not give up on Wynwood. Once the real estate market picks up again, property values will begin rising again.
Let’s talk in 2011…..LOL
Not really, the same question I asked back then I still ask. Who was ever gonna buy all these condos up at the prices they were asking for right off the bat. Very if few end users.
However, price the condos correct for the end user and Miami salaries and watch those condos fill up. It’s very simple.
Keep them in the $99k to under $300k – $250k for the “very best unit” and they will all sell quicker.
Can anybody provide dates of when the demolition party and ground breaking took place????
There was a building there before Cynergi, correct?
Your feedbacks would be greatly appreciated!
Demolition/Ground breaking party was in Dec 2005. The old sales office was still standing at the current Cynergi site. ground breaking took place in Jan 2006
Thank you Brian. I just needed confirmation that there was indeed a building standing there because the builder states that construction was delayed due to hurricanes. They never intended to start building until the first quarter of 06, hurricanes or not!!!!
Also I spoke with Ron Davidson who insists on telling me that the showroom display were upgrades and only the penthouse units would have subway tile in the bath. Everything in the building, finishes included are exactly as they were presented to us. They have not differed.
How is it that a different appraiser can give me a much more favorable appraisal, say 5% below purchase price??? And a different lender provide a mortgage as well….
Any feedbacks on that?
Beware of that appraiser! get a copy of that appraisal and get it reviewed by another appraisal company. It sounds very fishy. One of the reasons why the real estate market has taken a dive is due to the over valuation by unscrupulous real estate appraisers.
Ron Davidson will tell you anything to get you to close. These guys must be so close to going bankrupt, they are going to lose a fortune on this project.
Is the appraisal you got that was so high, from a lender related to the developer?
I everyone really should contact David Philips, Esquire from DK PHILIPS. From what I can see he is regularly being interviewed by newspapers and was on television a number of time due to his effectiveness. I met with him and he charged $500.00 but I learned a lot from him and was able to make an informed decision on how to move forward. His fee is 10% of your deposits if he can get you out of the contract prior to litigation and 33 1/3% if we must resort to litgation. He has a lot of cases and I’m am using him. He is always easy to contact and really understands the law. I place my faith in him.
Alfredo
Ted,
The doctored appraisal comes from the lender who is working with Cynergi. I believe it is unethical to embellish an appraisal to get financing.
I will know next week what modification they intend to do on the appraisal to change the value of the unit.
I have retained Nick Felzen who’s fee is 20/30%
He is reasonable compared to other attorneys and he has several cases from Cynergi already.
It seems like Cynergi is going to have a ton of lawsuits o there hands.
At no time did the sales people say the finishes in the showroom were upgrades and only for the penthouse units. Quite the contrary. When I went to the showroom I asked about upgrades and was told the developer wasn’t doing any upgrades except for the glass tile backsplash, which later was cancelled as an upgrade. The sales people are official representatives of the developer and act on behalf of them. Go thru all your documents, emails, etc to see if you have anything from the sales people or developers about upgrades and you can use this evidence against them to show they lied. In the marketing materials and description of the building it specifically mentions subway tiles in the bathrooms. There was no asterick noting that subway tiles are only for the penthouse units. Nothing that said finishes will differ between the penthouse and other units.
I agree the developer will say anything to make sure closings happen and this is one of the reasons why real estate and developers have such a bad reputation in Florida.
As fas as appraisals go, don’t trust the bank/appraiser the developer is using because they just want the condos to close. Ron Davidson is the owner/founder of Trust USA and they specialize in financing so I’m sure they will initially fund the mortgage and then sell it to another bank. Also if Ron’s appraiser is saying it’s worth 5% less is Ron willing to discount he unit to the appraised price?
Looks like two deeds have been recorded for the sale/transfer of units at Cynergi. Both unit 203 and 309 have been deeded to two different buyers for….$10.00
Brian,
Divide Deeddoc Tax by .006 to get the sale price.
My bad…didn’t mean to say the apartment sold for $10. But it does show that some people are closing on the building. Either they were able to obtain financing based on appraisal price or it was paid for in cash. If it was financed then thats a good sign that appraisals are close to purchase price or the appraiser is taking some cash under the table or being pressured to get the apartments to appraise.
Brian –
in some states a certain number of units must be “sold” in order for the condo plan to become effective. I wouldn’t be surprised to see some inside sales by the developer just to protect the condo status of the project. Those two sales may not be arms length closings
perplexed said: “in some states a certain number of units must be “sold” in order for the condo plan to become effective”.
I believe in Florida this is the case if the project contains 100 units or less.
Has anyone that is using Robert Cooper heard anything recently?
Brian
there’s a good possibility that these are insider/friendly closings. the developer needs these sales to set a bottom for future appraisals.
Happy July 4th. Why all of a sudden this site went silent? Are there any new developments with the closings?
My appraisals came really low and I am offered a doctored appraisal that came to my original purchase price.
Who gave you the “doctored” appraisal?. Have you hired an attorney to get out of your contract? Is anyone living in Cynergi yet? Has anyone been in court yet or deposed the developers?
why would anyone buy into a synergistic turd pile? was it the beautiful views of north miami ave? or the crime free streets? suckers!!!!
Walking Out, what was your original appraisal? How much lower (percentage or dollar) was it from your original purchase? Did the developers appraisers give you the doctored appraisal. Whoever is giving the doctored appraisal has violated business ethics and is committing fraud. No wonder why Florida has the highest mortgage fraud in the country.
As far as depositions go, I wouldn’t count on this anytime soon. The courts are backlogged and the developers will come up with excuses and delays for depositions, discovery, trial, etc. Anyone thinking they will just walk into court and get out of the deal will be in for a SHOCK. You’re looking at a minimum of 1 yr wait for resolution.
My appraisal came 32% lower than the contract price. While such doctored appraisals are illegal, the two apartments that closed were appraised just about 5% less than that of the original contract price and was funded by some financial institution. I suppose it is documented and deeded . I am sure if this is investigated those involved will lose their license.
I learn that many units are already litigated (personally know three units).
One suggestion that can be collectively made to the developer is to convert the building to apartment rental complex and refund our deposit. This way there is some salvation. Any suggestions or takers ?
Walking out said: “One suggestion that can be collectively made to the developer is to convert the building to apartment rental complex and refund our deposit. This way there is some salvation. ”
That is real tricky. If pre-sales reach a minimum threashold (60% – 70%) and one guy ends up closing, you run into a mountain of legal issues if you want to convert back to apartments. Probably a good idea but it does sound like this developer can afford it.
I met with a client last week, she just closed on her unit and wants to rent it. So far there have been 2 or 3 closings but nobody living in the building yet. Basically comparing this building to nearby new projects it will be a hard sale…my client’s unit is a loft with no closet and average kitchen…other projects in the area have really nice kitchens and and common areas —-not to mention closets. The building is lacking character and I imagine they will decorate the lobby sooner or later as leaving it the way it is makes the building look pretty cheap. I think the rentals here will have to be below the average price for new condos in the area not only because of the poor finishes but also because even though it is in a central location the views unless you are in a high floor are not great-you are either looking into roof-tops of very old 2/3 story buildings or into the Garage.
ND- Why did your client close on this unit. Did she negotiate the contract price down? IF not she probably has lost 1/2 her $$ if not more. She would of been better off walking away from the deposit. The developer probably does not have any $$ to decorate the lobby. IS there even a doorman there? I have a strong feeling this building will have one of the lowest closing rates for any new condo building in Miami.
I am curious. Did the developer or the salespersons promise that there was any rental program or provide any financial projections of how much money could be earned by putting the condo in a rental program offered by the developer or the developer’s related management company? If so, there could be securities law violations.
I made a deposit on a loft back in May 2005, and just finished reading this exchange. I am also interested in hiring some sort of representation, or getting a class action suit started. If anyone has initiated this process, feel free to email me, I have two addresses….. [email protected] and [email protected]
I have been ignored every time I call to find out about closing or the status of the building, and I will not close at this point. Someone should take the lead on this and compile a list of names, units and deposits made so we can stay organized and get this resolved.
Karl,
I think you just raised your hand.
My email is attached if you want to send me your name, number and unit # with deposit amount. I’ll compile a list and send it to everyone. Even if we end up with different lawyers I’m sure it would help. My email again is [email protected]
I think most people on this blog already are dealing with attorneys. These developers delivered such an inferior product, there is no way I would ever close on this garbage building.
Just as an FYI. Cynergi obtained their Temporary Certificate of Occupancy (TCO) on April 18th and it expires today, July 17th. As of today there has been no extension of the TCO nor has the developer received their final CO. Without a CO or TCO the developer can not do any more closings. When a TCO expires and there is no CO all owners/residents have to move out of the building until the CO is finally issued or another TCO is issued
Thank for the update Brian.
Do you know if anyone has had any success with an attorney?
Help me out here, if I am not able or willing to close. The least I should do is put a demand on the deposit right. I can do that without an attorney right?
Brian thanks for the crucial info. Not having obtained CO? It is very interesting. Could somebody enlighten me why (reasons for) no CO would had been issued? Does it mean some problem with the building?
I think you need to have an attorney to do a demand letter.
Maybe there are problems that the city can’t issue a CO, but it’s also interesting that as of the expiry date there was no extension of the temporary CO.
Me asked: “The least I should do is put a demand on the deposit right. I can do that without an attorney right?”
The FIRST THING you should do is contact the escrow company that hold your funds and PUT A HOLD ON THE ACCOUNT, citing a dispute with the developer.
That way, you have time to find a lawyer and have half of your deposit tied up until you settle your dispute….even if it takes two years!
GOOD LUCK.
this website has a lot of good info on deposit lawsuit and is written by a Miami lawyer with a harvard degree, http://beckandlee.wordpress.com/
Brian how do you know that the developer has not obtain a CO and that the temporary one expired on the 17th of july?
Me if you need an attorney call Nick fehlzen. He is works on contingency and 3 of us have already retained him for our case. His number is 305-498-1956. if yo speak to him tell him Corinne from the blog referred you. Good Luck!
Does anyone know how many units have closed so far, and if they are real buyers. Has anyone received closing notices, I have not heard anything from the developer in regards to closing on my unit, which I have no intention of doing.
From what I can see in public records, only 4 units have closed.
Just to get an unofficial head count …. how many bloggers have demended their deposit back?
I am one.
I’m 2. I know the title company has my full deposit in escrow. I will never let this developer get his hands on it.
I am 3.
I am # 4
I am 5
I know there a lot more than 5. Where has everybody gone?. I know this situation is very depressing for all of us but we need to keep in touch and up to date with any situation regarding this building.
Ciao
My attorney is going to file suit in the next week or 2. He has had no luck trying to negotiate with developer. Has anyone else begun litigation against cynergi yet? Has anyone even received a response from developer or his attorney? MY lawyer says I have a good case as my contract was signed over 3 years ago.
Depression has set in? anything new out there?
I’m 6. What’s the usual contingency percentage?
We’ve demanded a refund but have not yet sued.
my lawyer is charging 30% – 40% depending on if we need to sue in court or settle.
All,
There are only really three local real estate attorneys with a proven track records and if you google are all over the web:
1. David Philips, Esq. (DK PHILIPS)
2. Robery Cooper, PA
3. Jared Beck, of Beck & Lee.
I know that Mr Philips consultaiton fee is $500.00 and charges 33 1/3% for litigation.
I know that Robert Cooper PA charges 40% for litigation
Jared Beck I have yet to contact.
I drove by cynergi yesterday and someone is living there. As I was driving up North Miami Ave on one of the higher floors you can see furniture. So either someone is living there or it’s the model unit for the developer. As of today only 4 people have closed on their units at Cynergi
The only person there is the agent for Cynergi, she is living in the building and the also have one unit setup as a sales office. Which is visible from the street side.
Don’t think anyone else is living there yet. My feeling is that the 4 closings they had was all in house.
This building is DOOMED!!!
it looks good from the outside. What is wrong with this building?
anybody still looking for counsel in this case?
If I am not mistaken it appears from public records that 1 buyer has won his case for his deposit plus interest. There are several recorded contractors unpaid liens. We know that the developer got his C/O around May. As of September only 4 units have closed. This building is DOOMED!
Cynergi received their final Certificate of Occupancy on July 17th. It’s not unusual to have contractors unpaid since there could be disputes with their work or quality so I wouldn’t jump to any conclusions about unpaid liens. If you check all cases against Cynergi the lawyer representing Cynergi has filed a notice of unavailability/absence. There are several potential meanings behind such an action. It could simply mean the attorney is unavailable (e.g. vacation, out of town, etc) for a period of time. More disturbing meanings could be:
1) The attorney has been upaid by the developer and because of this she is making herself “unavailable”
2) A tactic to slow down hearings. By being unavailable it prevents or slows down cases that are pending
In my humble opinion it means the attorney hasn’t been paid and they need to slow down the number of lawsuits. This will only be a delay though and it doesn’t avoid the inevitable. Cases will be heard eventually and if they can’t afford lawyers anymore then I would think that would result in a default judgment.
And yes, Cynergi has lost their 1st case. Because of this they’re worried that it will result in a snowball effect and will cause them to lose all future cases. This is probably the reason why the attorney is unavailable. Cynergi will appeal the decision in order to postpone final judgment and delay any possible payouts. For those thinking legal action will be a short process are mistaken. This will become a long drawn out process and will probably results in appeals.
i have a friend who’s familiar with the case that was just won and has filed several suits of his/her own with respect to cynergi. impressive attorney if anybody is interested in following up.
Brian
it’s not that uncommon for attorneys to file a notice of unavailability. i think you’re reading into it way more than necessary.
“Just to get an unofficial head count …. how many bloggers have demended their deposit back?”
I am 6.
Just so everyone knows. Cynergi is in default of their mortgage with Banco Popular and they’re proceeding with taking ownership of the building. Their intentions are to sell the building at auction. This hasn’t been heard by the courts yet, but the bank has already filed legal action and has requested the building be sold at auction to satisfy the defaulted mortgage.
How about $50/s.f (unit s.f. only included in the calcs)?
On May 28th, Brian said about the Cynergy deposits: “The escrow agent is Fidelity”
On July 20th, me asked: “Me asked: “The least I should do is put a demand on the deposit right. I can do that without an attorney right?”
On July 20th, I said: “The FIRST THING you should do is contact the escrow company that hold your funds and PUT A HOLD ON THE ACCOUNT, citing a dispute with the developer. ”
—————
OK, let’s take an exam. How many of you have contacted Fidelity about you individual Cynergi escrow and instructed the to “FREEZE” your account until you release it?
If this developer goes BANKO, have your lawyers file a petition with the BANKO Court to retrieve the entire one-half (10%) of your original deposit which Fidelity is holding!
Like the NIKE ads say: JUST DO IT!!!!
Question? If Banco Wins the building, will Fidelity send us our refunds?? or do we still have to go to Court?
Abe,
I apologize if I confused you. “BANKO” is the word I was using for Bankruptcy Court. IF the developer declares bankruptcy, you will have to file a bankruptcy petition with the bankruptcy could laying claim to all of the funds that Fidelity is holding in your escrow account. (There is probably either half of your 20% deposit plus interest in the account.) As the money is held by Fidelity in escrow, you and the others in your position ar pretty much “first in line” as Fidelity will not release the escrowed funds until they receive a Court order or a release singned by YOU AND the developer.
First step: Call the Fidelity people and FREEZE the funds in your account. They are very cooperative!
If the developer does not file a bankruptcy, you ca go ahead with your lawsuit. Hope this helpes.
Where is Cynergi?
Can anyone here give me advice on the procedure or process that I need to claim back my 5% or10% preconstruction deposit that someone in here recently said is required to be refunded regardless by the escrow company holding my 20% deposit? Do i just send them and the developer a letter or do I need an attorney to do this. Thanks in advance.
There was a judgement to release all deposits + 11% interest on 9/29/2008 This was for one plaintiff. Could this promise a similar judgement for others. What happens if the first 10% is spend already?
I want my cash back NOW!!!
i bought a preconstruction unit at icon brickell for 489.000.00dollars.the closing is in november.one appraisal came back at 370000dollars.i am waiting for the 2nd appraisal.sales office says the contract is not contingent upon appraisal or bank approval.i dont know what my options are.
You are most likely Fucked!!!
Has anyone spoken to the developer lately? Now that they are in foreclosure what is the best way to recover our deposits?
I have a hearing today regarding the return of my deposit, I will keep you all posted
Karl, did you win your case?
They filed for a discovery motion, and postponed the date, nit sure when I’ll get back. Will update as time goes on
Thats insance, what does Cynergi need to discover since they have all the information related to the delays? It’s just a horrible delay tactic and might have something to do with the pending banco popular foreclosure.
Lucky for me none of their tactics worked. I actually offered them an incentive to let me out of the contract. I offered them 85 cents on the dollar to let me out of the contract and I would drop my lawsuit. They countered at $20k which was an insult. I then countered again but at 80 cents and I never heard back.
I was hoping to resolve the problem, but they didn’t want to cooperate so I said screw it; see you in court. Well that was the dumbest move the developer could have done because they lost the case and instead of paying out 80 cents on the dollar they now need to pay 100 percent plus interest plus attorney fees. That was just a bad gambling move on their part and now they lost.
Unfortunately with the building going into foreclosure and auction I will probably never see half of my deposit (which they used on construction) or the attorney fees. Banco Popular has primary lien at the mortage holder and unless they recoup their $25 million dollars no one that currently has a lien will see a dime.
Fortunatly the money in escrow can not be touched unless the court orders it and they won’t order it to pay banco popular.
They also offered me a settlement that I turned down, only 25% of what they owed me. But for everyone out there that hasn’t taken action yet, you MUST HIRE an attny to put a freeze on whatever money you have in escrow ASAP! It can be done in a day, just make sure you do it, or you will have no recourse
I put a freeze on my escrow my self by contacting the escrow company.
What difference would it make if you have an attorney do this?
At what stage would we receive the remaining deposit out of escrow?
Does anyone have any info on the status of the foreclosure?
Thanks
They are offering to settle on 50% of the remaining deposit. You could have your money within 2 weeks.
If you still have 100% of your deposit in escrow then I would take legal action to get that money back. If they only have half in escrow and they’re offering 50% of the original deposit I would take it and then count your blessings.
For me, while I won judgment, I may never see the other 50% of my escrow deposit nor my attorney fees to fight the developer so if you can get 50% without incurring additional expenses I would take it
Question for Brian,
I hired an attorney, and i have a hold on half of my deposit (they used the other half)
Will Cynergi give me back half of the whole 10%, or half of what i have left? in escrow.
I haven’t heard about the 50% offer until I saw it on this posting. You should tell your attorney about it and have him/her inquire
Karl, I looked at the court dockets and it shows that the judge dismissed the claim for summary judgment rather than being postponed for discovery. Have you spoken with Deborah about this? I won my case based on summary judgment so I would be concerned why your case for summary judgment was dismissed while another plaintiff(me) won summary judgment. Ask your attorney if something has changed in case law since my case was won
Wow, I live in Edgewater, and I drive past this building a lot on my way to the Midtown Shops. I’ve always wondered why the building, despite apparently being finished, seemed unoccupied. Now I know why. What an unfortunate disaster.
Karl did you talk to your attorney about your case. If I were you I would be concerned because I won my case on summary judgment, but your summary judgment was dismissed. Something must have changed since my case or maybe your attorney didn’t reference my case that won or maybe she argued on the wrong facts.
Brian,
She said that they dismissed it because they needed discovery and that she had to request a new court date. She seemed disappointed because you won based on summary judgement, but she said it was just a setback. Did you use Deborah as well? I’ll email her today and keep you posted. Also, my email address is [email protected] It may be easier and quicker to communicate that way, I only check this forum about once a month
I haven’t checked in to this forum for months but obviously need to make a move. Brian, who did you use on your case or can you suggest a good litigator? I checked and I still have $57,000 in escrow, which is half of my 20% deposit. It shouldn’t be terribly hard to get that back, should it? I’m inclined to pay an attorney by the hour and maybe have to spend 7K to get back 50K? The rest I’d hire someone on contingency and let it go on for years, if necessary. Comments?
I would highly suggest using a good litigator, but most work on contingency basis. My attorney that I used aren’t litigators, but specialize in real estate. I think my attorney was very good, but might have just been lucky to win the case since another case that was recently heard just lost their summary judgment.
The developer will not be giving back any deposits without a fight so you will need an attorney. Also with Banco Popular in the picture trying to foreclose on the building you now have to deal with both the developer and bank.
I know the developer is reaching out and offering settlements to people. From what I can tell these offers are only to those who have started legal proceedings. By the way, how many people on here have received offers?
Hi Guys,
I’ve been watching this building for a long time and am wondering about what will happen to the units? I didn’t buy pre-con but frankly I’m hoping there’s a way I might buy after the auction – any details on what usually happens next – will the units be made available again to the public? I assume this could be a great opportunity for those who waited on the sidelines? Sorry for all your troubles however… 🙁
Everyone’s gone quiet on this blog. I’m guessing people are getting settlement offers from the developer and the offer has a “gag order” attached to it.
Anyone on this blog using Robert Cooper will be happy to hear he is filing the complaint tomorrow. I’m hoping the developer will come back with a much higher settlement offer. The 1st offer I received was $20k, and my FULL deposit is still being held by Fidelity Title.
Anyone out there? I want my CASH!! I’m waiting for a response from developer, My lawyer filed the complaint a few weeks ago. IS anyone even living in this building yet?
Everyone has gotten quiet on this blog. Many have probably settled with the developer and as part of the settlement they have to cease talking about the bldg. I know for a fact a good percentage of the cases filed in court have been settled and many others who haven’t sued have been contacted and offered settlements.
Hi Tedd, it has been awhile since I have blogged here. I am using Robert Cooper. He has responded with the same miserable counter of 20K. Are you sure that the escrow agent still has the full deposit? If so that’s luck.
Yes, I have personally confirmed with Fidelity that they have my full deposit in escrow. The developer never touched it for some reason. We still have not received an answer to the complaint. IF they do not respond hopefully we will
win a default judgment.
What do you think will happen with Cynergi?
Will it ever be occupied?
What are your predictions?
I recently settled some claims. I used Ely R. Levy for several condominiums that I couldn’t close on. got in over my head in the boom like everyone else. He is with the Militzok & Levy firm (www.mllawfl.com). He was very responsive and did a solid job in recovering a good portion of our deposit for us. I would recommend him.
Sara,
Did you settle with Cynergi, if so what were you able to recover? I’m waiting for them to respond to the action my atttorney file almost a month ago. This building is a disaster.
Call me at when they are $50 psf.
I will rent one for storage.
Anyone have any new info? My lawyer received a ridiculous offer of $20k to settle. We have to serve the lawsuit on the secretary of state since The developer is hiding out and does not have an office anymore, or at least not one my lawyer can locate.
Have your attorney contact Cynergi’s attorney. I’ve heard others say they can’t find the developer at the address anymore. The attorney information is:
Fran Zion
Fromberg, Perlow & Kornik, P.A.
18901 NE 29th Ave, Suite 100
Aventura, FL 33180
305-933-2000
[email protected]
The developed went into hiding so they can’t be served any more lawsuits cancelling contracts. It’s getting so bad that the lawsuits are going to the secretary of state because they can’t be served. Luckily some swift process servers have found izahk at his home address and served him there.
I know some people have settled for pennies on the dollar. Don’t give up especially if the developer holds your full deposit. The longer they try to fight the higher their legal bills will be. It’s a travesty what they’re doing and they should be held accountable. Accountable for switching out finishes with lesser quality ones. Held responsible for the delays. Held responsible for violating ILSA. Held responsible for committing fraud by taking money out of escrow after being served with a lawsuit. For those suing or think g about suing. Don’t give up. Be vigilant
Even if you do get a judgment, does the developer even have any assets to satisfy it?
The developer has the money left in escrow. And you can put a lien on the property as well. There are ways to go after them
Its gotten quiet out there. I’m assuming everyone has settled with the developer for pennies on the dollar. That’s too bad because the developer has taken advantage of everyone and there is no reason why all contract holders don’t get their full deposit back.
Cynergi has been foreclosed on and is now owned by Banco Popular. Banco Popular has sold it’s “note” in the building to another company who will take it to auction in March. Everyone should either have already been refunded their contract deposits or in the process of settling
cynergi has gone from being an overpriced loft oasis to…full fledged rental project. i say this with all sincerity – don’t be surprised if it turns into section 8 housing.
I am just wondering what condos will be sold for? Are they rented now?
I believe it will be turned into rentals. I dont think the bank can sell the building to recoup it’s costs and whoever buys it probably won’t be able to sell the condos in this market. Also with the implosion of Midtown Miami and the area not gentrifying into a more desireable area no one will buy a condo when it’s next door to a crack house
Hi everyone, just discovered this blog- am interested in renting at Cynergi. My agent noticed only four units available to rent at present- any idea why, since so much of the building is vacant??
The ones listed are all over 1000 per month, which is my limit- if anyone has a unit they would rent for a one year with option to renew for a second year at 900-1000 per, then I’m interested.
I have owned a web-based business for over a decade now, and am opening a design studio/furniture gallery in the design district later this year.
I sold my bricks & mortar gallery with inventory in North Miami last year- I like Cynergi’s location, and want to be close to the new store.
Jeff –
There’s a bunch of units available for rent, I think the smaller ones (priced under $1,000) have been rented out already but they have a leasing office onsite. Its worth it to visit the building with your realtor and see what they have for you. Their number is 305.573.6768 and their website is http://www.cynergilife.com.
I was over today to look at the units in Cynergi. I was very disappointed. The building is definitely not finished AT ALL and the units are way overpriced considering the location and the condition of the building.
The building is now owned by a Venezuelan family, not a foreclosure anymore. I wouldn’t pay more than $1000 to live there … Not worth it at all …
There are 94 units there, about a 50% occupancy, lowest at $1140.. the pool and gym are not completed so they are offering $25 discount for each (pool and gym), $50 total off your rent until completed. I haven’t seen the units yet… I would like to check them out and see what the units look it…
I was doing some research on the fact that the square feet that has been mentioned in the modified condo documents are false. My unit is off by about 150-200 sqft. It seemed smaller than what was advertised.
Anyways, I rent here. Actually, I kind of like it. I love the floors and ceiling, and my unit has about 17 windows. I also have 2 huge balconies.
Yeah, maybe I am overpaying, but believe me I like the location a lot, and I prefer it much more than a 700 unit condo like Quantum. This is a boutique condo and it feels like it.
Parking is a snap too – no dreaded valet service to screw up your car and make you late for appointment, and a garage that is very easy to get in and out.
Within walking distance to a lot of restaurants and shops.
Maybe as an investment in 05, it was overpriced – but as a rental in 2010-11 it’s not bad.