Swamplot Archives by Tag: Lawsuits

Monday, October 19, 2009

2727 Kirby: Refunds Are on Their Way

October 19, 2009 – 5:14 pm

The Chronicle’s Nancy Sarnoff, after a tour of 2727 Kirby:

Developer Jerry Brown said 20 units are occupied in the 78-unit building.

The least expensive floor is priced at $575 per square foot, he said, and the average unit is about $2 million.

Maintenance fees are 65 cents per square foot.

While Brown said he’s seeing more traffic these days, there have been some snags.

I recently came across some lawsuits against the developer filed by buyers who canceled their contracts, but didn’t receive their earnest money back like they were promised.

“If they’re entitled to their money, they’ll get their money,” Brown said.

Photo of 2727 Kirby: Ziegler Cooper

5:14 pm | 17 Comments | Read more about Condos, Condos for Sale, Highrises, Neighborhoods: Upper Kirby, New Construction: Residential
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Wednesday, August 26, 2009

Redevelopment Brawl at the Sharpstown Mall

August 26, 2009 – 12:40 pm
   

Developer and former Sugar Land mayor David Wallace now says his firm’s $350 million proposal to redevelop the Sharpstown Mall — approved in early July by the Southwest Houston TIRZ over the objections of the mall’s owner and manager — isn’t likely to happen: “R.D. Tanner, a partner in the firm, resigned from the TIRZ board the day his company [Wallace Bajjali Development Partners] submitted its vision for the mall. The board voted to support his firm’s bid that same day. The board is tasked with overseeing the site’s redevelopment and distributing up to $20 million of public money to assist in that effort. The mall’s owner and manager — whose own redevelopment plan was rejected by the authority in May — filed suit last week, alleging that Tanner and the TIRZ board’s subsequent requests for information were “a subterfuge” to obtain “confidential, proprietary information” they could use to make their own bid. The allegations highlight a widespread problem in Houston: that developers on TIRZ boards are often able to make decisions about tax abatements — and the use of public dollars for economic development — that ultimately benefit themselves or their projects, according to Craig McDonald, director of Texans for Public Justice, an advocacy organization that promotes openness and accountability in government.” [Houston Chronicle]

12:40 pm | 9 Comments | Read more about Financing, Malls, Neighborhoods: Sharpstown, Quicklink, Redevelopment
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Thursday, May 21, 2009

No-Charity Case: Royce Builders Education in Bankruptcy

May 21, 2009 – 10:40 am

Regular Swamplot readers will remember all the fun surrounding the collapse and shutdown of Royce Builders last year. What’s happened since? Chapter 7 bankruptcy! Plus now, says the Chronicle’s Nancy Sarnoff:

Wisenbaker Builder Services, Suncoast Post Tension, Builders Mechanical and Luxury Baths by Arrow are collectively seeking to recover more than $1.1 million from the builder, according to the petition filed last month in U.S. Bankruptcy Court for the Southern District of Texas.

Thousands of home- owners could also have claims against the company.

Attorney David Jones, who is representing Royce in the bankruptcy, is compiling names of potential creditors that lists more than 12,000 people.

“Homeowners are the biggest portion,” said Jones, a partner with Porter & Hedges.

Oh, but there’s more! In a separate legal action, an educational charity that Royce owner John Speer used to promote his businesses and solicit contributions from customers is claiming that Royce failed to deliver funds raised on its behalf. A struggling charity that renamed itself the Royce Homes Foundation for Youth in 2003 — after Speer apparently promised to deliver several hundred thousand dollars a year in support — says Royce still owes it about $400K:

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10:40 am | 16 Comments | Read more about Bankruptcies, Hazards, Homebuilders
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Thursday, April 9, 2009

League City Condo Trap: Bad Conversion at the Fairways

April 9, 2009 – 1:40 pm

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:

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1:40 pm | Add a Comment | Read more about Condos, Foreclosures, Fraud, Hazards, Neighborhoods: League City, Real Estate Investing
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Friday, February 20, 2009

Allen Stanford’s Downtown Houston Loft Legacy: Tell it to the Arbitrator

February 20, 2009 – 1:36 pm

Allen Stanford’s international “banking” empire is falling apart. How’s his work as a Houston real estate developer holding up?

Stanford Development Corporation still owns a couple of units on the top floor of the Stanford Lofts, the 5-story East Downtown condo building topped with a starred tiara that the company completed in 2002, just a few blocks east of Minute Maid Park. But owning the condos didn’t prevent the condo owners association from filing a construction-defect lawsuit against the Stanford Lofts developers and builders in 2007, charging Stanford Development with “breach of contract, Deceptive Trade Practices, breach of warranty, fraud, and negligent design, construction, and supervision.”

The summary of problems with the building included in the original complaint is 9 pages long, and includes failure to meet building codes, wall cracks and leaks, structural movement, and a series of defects causing continuing problems with water infiltration. The repair estimate: more than $2 million.

The case has dragged on for some time. Attorneys for the Stanford Condo Owners Association complained that Stanford Development was dragging its feet, arguing last year in response to a stay request:

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1:36 pm | Add a Comment | Read more about Buying and Selling, Condos, Construction Problems, Neighborhood Disputes, Neighborhoods: East Downtown
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Tuesday, January 13, 2009

The Finger, the Gun, and Other Secrets of the Park Memorial Sale

January 13, 2009 – 3:42 pm

Some juicy emails to former residents of Park Memorial leaked to Swamplot reveal new information about the proposed sale of the shuttered 4.85-acre property off Memorial Drive. The emails were sent by the condo complex’s board of directors, which apparently has quite a few problems to work out before the sale can go through.

First, about that mysterious buyer — whose name had apparently been kept secret from condo owners. The buyer is “now known as Detering Acquisitions,” according to the latest email. Detering Acquisitions is also the name of an LLC managed by Marvy Finger, president and CEO of apartment developer The Finger Companies.

According to the emails, 97 out of 108 Park Memorial owners want to sell the complex to this “unnamed” buyer for an agreed-upon price of around $17 million. But 11 others are seeking separate negotiations with the buyer, even though the buyer has indicated that he “will not negotiate” with the group.

This is also the group of people that filed the actions against the City, and that is now suing the Association (along with individual directors, the realty company, and an attorney).

And . . . there’s even more quasi-legal fun!

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3:42 pm | 1 Comment | Read more about Buying and Selling, Neighborhood Disputes, Neighborhoods: Rice Military
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Thursday, December 27, 2007

The Leaky Lakes of Crown Oaks

December 27, 2007 – 11:31 am

Lake at Crown Oaks, ConroeThe charms of gated acreage near Lake Conroe: large, wooded lakefront homesites, plus only a 25 minute commute . . . to The Woodlands! Oh, and if we’re talking about 1400-acre Crown Oaks in Montgomery County, lots of lawsuits, too!

Last year, the Crown Oaks Property Owners Association, along with individual homeowners, sued Affiliated Crown Development LTD, citing poor structure of the two manmade lakes in the development, located outside Montgomery.

But so much has happened since then: After new board members decided the developer would finally work with them to solve the lakes’ problems, the property owners association dropped its suit this fall. But now two groups of 10 individual homeowners have hired separate legal teams to continue their lawsuit against the developer. And in turn, the developer is now suing the engineering and construction firms it hired to build the dams on both lakes.

But there’s even more lawsuit fun:

“The POA tried to get out of the suit as a plaintiff, so my group has also sued them,” [homeowner attorney Kevin] Forsberg said. “The individuals were not satisfied. … Even though the POA started working with the developer in the hopes that the lakes would be fixed, nothing has actually been done.”

What’s it like to build your home on a lake that doesn’t bother to show up? Thanks to the amazing power of the internets, you can experience all the highs and lows of manmade-lakefront real-estate investing yourself — from the comfort of your own computer! Watch videos and read details of the whole dam story . . . after the jump!

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11:31 am | Read more about Environmental, Flooding, Hazards, Homeowners' Associations, Lakes, Land Development, Landscape, Master-Planned Communities, Montgomery County, Neighborhoods: Crown Oaks, Real Estate Marketing
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