A federal judge allowed the sale of the condemned Heron Pond condominium complex in Pembroke Pines for $20.5 million to Integra Investments, after rejecting a legal challenge from bulk unit owner Federated Foundation Trust, according to a March 23 statement.
The decision is significant for the owners and former residents of Heron Pond, a 304-unit property that has faced years of disrepair and was evacuated in summer 2024 due to structural safety concerns. The sale is expected to generate proceeds for unit owners after authorities ordered the community vacated.
Court-appointed receiver Daniel Stermer determined that selling the property was preferable because repairs would be too costly. Integra Investments submitted a stalking horse bid last summer for $20.5 million, but Federated Foundation Trust—which owns more than 100 units—objected, claiming it was unfairly excluded from bidding. Receiver attorneys said Federated’s bid did not meet qualifications and lacked necessary financial documentation.
Brian Rich, attorney for Stermer, said during a Jan. 7 hearing: “Federated had ample opportunity to provide the necessary information to demonstrate that they were a qualified bidder. They waited until the day before –– the deadline to submit their qualifications, and they didn’t have it.” Michael Niles, another attorney for Stermer, said Federated’s application lacked bank statements or proof of funds.
Federated’s attorney Craig Oberweger argued at the hearing that exclusion from bidding “undermines the integrity of the sale and the interests of unit owners” and “by limiting competition, the process fails to maximize monies that unit owners could receive.” Ultimately Judge Smith gave Federated six days to present funds exceeding Integra’s offer but approved Integra’s purchase when Federated could not provide sufficient evidence it had secured enough money.
Smith wrote in his order that “the sale was negotiated and entered into in good faith and without collusion or fraud of any kind.” A federal appeals panel later affirmed Smith’s order against Federated’s appeal but denied sanctions against them.
Solomon Radner, an attorney for Federated, said: “Federated believes it will lose millions through this receivership process.” Stermer stated he will now move “swiftly” toward closing with Integra.
The case highlights ongoing disputes over management at Heron Pond; past court filings accused individuals tied to Federated with mismanagement aimed at acquiring more units cheaply—a claim Radner denies on behalf of his client: “Federated unequivocally and expressly denies this allegation.”
Zoning rules allow up to 321 units on site across several buildings up to eight stories tall or no higher than 100 feet. Court records indicate some current owners will see sales proceeds fall short of their mortgage balances; Integra must pay off agency-backed loans on eight such units even if this exceeds its purchase price.
