Investors demand refunds after Palm Bay townhomes construction stalls, property deteriorates
Buyers left in limbo as city plans to tear down unfinished homes
Buyers say they were promised their dream homes. But after three years of delays, silence from the builder, and mounting frustration, they?re still waiting ? and now the city of Palm Bay is preparing to demolish the unfinished project.
PALM BAY, Fla. - Buyers say they were promised their dream homes. But after three years of delays, silence from the builder, and mounting frustration, they’re still waiting — and now the City of Palm Bay is preparing to demolish the unfinished project.
What we know:
Two investors reached out to FOX 35’s Esther Bower after seeing the initial reports and investigations on D32 properties in Palm Bay and Central Florida. In January, FOX 35 heard from residents concerned about the construction sites and lack of maintenance in the area.
Now, investors who paid for down payments on the properties are demanding answers and refunds since the construction has stalled for so long. Investors say their calls and emails go unanswered, and they fear their money is gone. Some are considering legal action against the developer to recoup the funds.
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The City of Palm Bay is also concerned about the sites and is taking action to have them removed. Both projects, a townhome community and apartment complex, have expired permits. This means the developer is in violation of state law and city code. Because of that, the city is looking into hiring a contractor to remove the construction sites altogether. That will be discussed at a city council meeting on August 7.
The developer says they are continuing to move forward with construction and new permits to finish the project. They also said they would issue refunds to investors based on what’s listed in the contract.
What we don't know:
It’s unclear if the properties will pass an inspection from an engineer because there is apparent weather damage. The developer also couldn’t give any kind of timeline for when construction would finish if they are able to secure new permits.
What they're saying:
People who invested in properties say they’ve gone several months with no updates. They submitted documents to cancel the contract but have still not received any refunds.
"I officially requested a refund, and I just kept getting that email, talk to the builder and they will contact you. Up until this point, the builder has not contacted me at all," said Ian Ferguson, from Michigan, who paid a $58,000 deposit for one townhome.
"I have email addresses of people, and no one responds. I’ve tried to call, and there’s no answer," said Emily Hall, from Utah, who paid a $116,000 deposit for two townhomes.
The City of Palm Bay shared this update on where things stand at the site according to a building official:
"The Nathi Villas and Nathi Townhome projects were served with a notice of violation on April 29, 2025.
"The properties are in violation of the Florida Building Code, section 105.4.1.2. This section states that if a new permit has not been obtained within 180 days from the date the original permit has become null and void, the building official is authorized to require that any work which has been commenced or completed be removed from the site.
"As new permits have not been applied for, the notice of violation instructed that there were two methods to obtain compliance for these projects. The contractor can either apply for and obtain new permits, or they can remove all construction materials from the site and return the site to its original state.
"The contractor was provided 60 days to comply with the order contained in the notice of violation. Failure to comply with one of these two methods would result in the City of Palm Bay contracting with a vendor to remove all construction materials from the site and placing a lien on the property to recover the costs associated with the removal of construction materials. To date, the City has not received new permit applications for these projects.
The City has moved forward to obtain bids for removal of construction materials. This will be presented to City Council for approval at the 8/7/25 Regular Council Meeting."
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A partner in the project answered questions via email from FOX 35's Esther Bower about the project. The questions and answers (Q&A) from Werner Macedo are below:
Esther Bower: What is the latest status on building/doing site restoration on your Nathi Townhomes in Palm Bay?
Werner Macedo: We are going above and beyond at this point. We have engaged a new architect to bring the plans up to new code and submit them to the city. Our people are working with city staff to get construction going again.
Esther Bower: The City of Palm Bay told me this week: "To date, the City has not received new permit applications for these projects. The City has moved forward to obtain bids for removal of construction materials. This will be presented to City Council for approval at the 8/7/25 Regular Council Meeting."
Werner Macedo: What is your comment on this now that the city is moving forward with finding a contractor to remove all materials on site since there are no new permits, and the deadline has passed when a final notice of violation was issued on April, 29? The city is doing their job and exploring their options. I understand that, but we are working with city staff to resolve and re-permit the project.
Esther Bower: Investors who put down deposits on the property say they have attempted to get their money back but have not heard from the company in more than a year. Do you plan to refund people for the unfinished work? How can investors get ahold of you on the project?
Werner Macedo: Any individual who entered into a valid purchase agreement and wishes to cancel will receive a full refund of their deposit. We remain committed to honoring all contractual obligations. All inquiries are managed through our real estate brokers and are still available to all of them.
Esther Bower: What barriers are still preventing you from finishing the project?
Werner Macedo: We are working diligently with the city staff to ensure that all challenges are met.
Esther Bower: Can you give me a deadline for when you anticipate the townhomes to be built, if you are continuing construction?
Werner Macedo: What I can say is that after our plans are re-submitted and our work is done the ball is in the hands of city staff. I am sure that they are working in good faith to ensure that this project is finished as soon as possible.
The Source: This story was written based on information shared by the City of Palm Bay, Ian Ferguson, from Michigan, who paid a $58,000 deposit for one townhome, mily Hall, from Utah, who paid a $116,000 deposit for two townhomes, and Werner Macedo, a partner in the project.