Cynergi Buyer Wants Out

June 12, 2007 by Lucas Lechuga

Cynergi exterior
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 Miami preconstruction contract 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.

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264 Comments on "Cynergi Buyer Wants Out"


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Anonymous
Evan
9 years 3 months ago

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.

Anonymous
"john dow"
9 years 2 months ago
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… Read more »
Anonymous
9 years 2 months ago

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.

Anonymous
brian
9 years 2 months ago
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… Read more »
Anonymous
brian
9 years 1 month ago
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… Read more »
Anonymous
"john dow"
9 years 1 month ago
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… Read more »
Anonymous
brian
9 years 1 month ago
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… Read more »
Anonymous
Rich
9 years 1 month ago
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… Read more »
Anonymous
Rich
9 years 1 month ago
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… Read more »
Anonymous
Rich
9 years 1 month ago

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

Anonymous
brian
9 years 1 month ago

john Dow, how do we get in touch with you to organize a possible class action suit?

Anonymous
"john dow"
9 years 1 month ago
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,… Read more »
Anonymous
brian
9 years 1 month ago

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).

Anonymous
brian
9 years 1 month ago

John, so what happened during your meeting with the developer?

Anonymous
john
9 years 1 month ago

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

Anonymous
brian
9 years 1 month ago

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

Anonymous
brian
9 years 29 days ago

john, whats the scoop? did you meet with the developer?

Anonymous
angela rosso
8 years 11 months ago

i bought an loft and definitely want out!!
if you are doing something please let me know asap.

Anonymous
brian
8 years 10 months ago

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

Anonymous
Corinne
8 years 10 months ago

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!

Anonymous
Corinne
8 years 10 months ago

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!

Anonymous
brian
8 years 10 months ago
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… Read more »
Anonymous
brian
8 years 10 months ago

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&region=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.

Anonymous
john dow
8 years 10 months ago

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

Anonymous
BuyerWantsOut
8 years 9 months ago

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 test_test2122005@yahoo.com.

Anonymous
Rich
8 years 8 months ago

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.

Anonymous
michael
8 years 8 months ago

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.

Anonymous
brian
8 years 8 months ago
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… Read more »
Anonymous
STEVE
8 years 8 months ago

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.

Anonymous
brian
8 years 8 months ago
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… Read more »
Anonymous
brian
8 years 8 months ago

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….

Anonymous
brian
8 years 8 months ago

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?

Anonymous
brian
8 years 8 months ago

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…..

Anonymous
Corinne
8 years 8 months ago

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 cfaivre@rcn.com with any suggestions or comments.

Anonymous
Lisa
8 years 8 months ago

Everyone,

I would look into the attorneys at D|K PHILIPS, Attorneys & Counselors at Law. There website is: http://www.condominium911.com. I understand that they are the most effective firm out there.

Anonymous
8 years 7 months ago

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

Anonymous
STEVE
8 years 7 months ago

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

Anonymous
brian
8 years 7 months ago
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… Read more »
Anonymous
STEVE
8 years 7 months ago

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

Anonymous
STEVE
8 years 7 months ago

by the way: Midtown – 5 active listings for one bedroom units range from $229K to $250K approx 800 sf.

Anonymous
Corinne
8 years 7 months ago

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?

Anonymous
pepe
8 years 7 months ago

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.

Anonymous
Steve
8 years 6 months ago

Has anybody been contacted about closing on the unit?

Anonymous
Un-Related
8 years 6 months ago

You might want to see if one of the best in the business has anything on Cynergi.

MICHAEL J. SCHLESINGER
Phone: 305-373-8993

Anonymous
Steve
8 years 6 months ago

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.

Anonymous
Corinne
8 years 6 months ago

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

Anonymous
brian
8 years 6 months ago

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.

Anonymous
brian
8 years 6 months ago
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… Read more »
Anonymous
Steve
8 years 5 months ago
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… Read more »
Anonymous
Steve
8 years 5 months ago

where did everybody go?… anybody alive?

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