Just how did a group of Israeli investors get stuck with 114 condo units in this quaint converted apartment complex in League City? And why are they now suing the project’s developer and property manager?
The Galveston County Daily News’s Laura Elder explains:
The investors never intended to live in the units but instead were seeking to generate income by renting them to others, according to the lawsuit. Through agreements, the units owned by the investors were put in a rental pool managed by the defendants, according to the lawsuit.
But while Westcorp Management Group, of which Roni Amid is vice chairman, had been collecting rent from tenants, it failed to pay proceeds to the mortgage company or the investors for some units, according to the lawsuit.
Without rental income, some of the investors are unable to pay their mortgages, leading lenders to begin foreclosure proceedings on at least 30 units in the complex, said Danny Sheena, a Houston attorney representing investors.
The suit also claims the defendants used the investors’ units at the Fairways at South Shore as collateral for a $23 million loan from Deutsche Bank obtained behind their backs last August. Which means, the suit claims, the investors can’t sell their units.
And that Israeli connection? Looks like it’s all in the family:
Comment of the Day: Living the Wildlife at Mosaic
“It’s a Damn shame about those nesting rare birds but look on the bright side, if these condos keep selling like they have there will only be rare birds living there and trees growing up through the lobby anyway!” [james cianci, commenting on Mosaic Avoids Foreclosure, Files for Bankruptcy]