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