Developer behind former Trio condo-hotel tower project in Naples files for bankruptcy

The developer behind the troubled Trio condo-hotel tower has filed for personal bankruptcy, estimating he owes nearly $6 million to creditors.

The filing by Anthony Fortino comes after his company — Trio Southern Holdings LLC — surrendered the land for the luxury tower development in East Naples to the lender in April. According to county records, the company transferred the deed to avoid foreclosure and satisfy a multimillion-dollar loan.

More:Trio high-rise condo-hotel planned for East Naples Triangle put 'on hold'

On June 8, Fortino filed for Chapter 7 bankruptcy in the Fort Myers division of the U.S. Bankruptcy Court, in the Middle District of Florida. A filing of this kind can be a quick way to get rid of debt.

Fortino lists liabilities of more than $5.8 million and assets of less than $630,000. His biggest asset is his five-bedroom single-family home on Palma Blanca Court, valued at more than $602,000. 

Other assets include land in Port Charlotte and ownership in a marina slip at the Pelican Isle Yacht Club.

In the filing, Fortino says he's not employed but that he's "actively seeking employment and is hopeful to secure a position imminently." 

State records show his company Fortino Construction and Development as active. According to the company's website, there are offices in Naples and Hackensack, New Jersey — and Fortino has 25 years of construction and development experience.

Neither Fortino nor his attorney could be reached for comment.

Fortino estimates his monthly income at $6,000 and his monthly expenses at almost $8,300. He describes the income as "a depletion of savings." 

He has ownership in a handful of limited liability companies. 

According to the bankruptcy filing, one of Fortino's largest debts — $2.8 million — is for a personal guaranty related to a commercial loan tied to a shopping center in Mahwah, New Jersey. The lender is Crown Bank in New Jersey. 

Other creditors include Fort Myers resident Joseph Termotto, who is owed nearly $1 million for a business loan, and New Jersey-based Valley National Bank, which has a deficiency judgment from two rental buildings and a claim of $1.65 million.

Nearly $100,000 is owed to New York-based M&T Bank for a deficiency on a repossessed vessel.

A few of Fortino's other creditors are based in Naples. That includes the law firm of Cheffy Passidomo and Bartley Realty, which was acting as the exclusive broker for Trio and has a claim for $200,000 in real estate commissions.

A hearing on the bankruptcy case is scheduled for July 17 at the federal courthouse in downtown Fort Myers. 

Meanwhile, the slice of vacant property where Trio was planned recently resold to real estate investors. 

Property records show the land at U.S. 41 and Davis Boulevard changed hands for $5.25 million about a month after the deed was surrendered to the lender. 

More:Investors snatch up East Naples Triangle site where Trio condos tower plan stalled

The new owners, London of Naples, purchased the land from an affiliate of Endeavor Capital Finance.

County records show Customers Bank, a Pennsylvania-chartered bank, assigned the note, mortgage and loan documents to Endeavor on April 2. The principal amount for the note, last renewed in May 2017, was $4 million.

There were signs the planned residences at Trio were slow in selling. The design was tweaked in July to offer more floor plans with smaller residences starting at a lower price  — $499,900.

With the design changes, 17 of the 24 residences were priced at less than $1 million.

More recently, Fortino's company applied for a change to the site development plan to reduce the number of residences and increase the number of hotel rooms, which could be handled administratively by the county. The plan got administrative approval, but it was never finalized because the required impact fees weren't paid.

Impact fees, designed to help growth pay for growth, are one-time charges on new construction.

The name Trio came from the pizza-slice shape of the land. Although future plans are uncertain, the development already has a new name — Gateway of Naples.

On June 14, London of Naples submitted a request to the county to change the project's name, to update the property ownership information and to revise the square footage breakdown for uses in the development. 

The county is still reviewing the new owner's request. No changes have been proposed to the site or the outside of the building.

London of Naples wants approval to build 24 residences and 150 hotel rooms, along with 6,000 square feet of retail and 4,000 square feet of restaurant space.

Fortino's most recent concept included fewer hotel rooms, less retail and more room for restaurants and offices than the plan now being floated.

A similar but larger hotel and condo tower, which has yet to be named, is planned for a 5-acre site nearby. 

That project — by local developers Jerry Starkey and Fred Pezeshkan, of Real Estate Partners International — would include a mix of restaurants, stores and offices, along with a high-end movie theater and a rooftop restaurant.

The zoning would allow up to 377 residential units, 228 hotel rooms and 200,000 square feet of commercial space for various uses.

Collier County commissioners unanimously approved that project May 8.