Invision Capital Management Files Multiple Claims for Damages in Lawsuit against American Residential Properties, Inc.
Scottsdale, AZ (PRWEB) July 24, 2014 -- Invision Capital Management has filed multiple claims in Maricopa County Court against national REIT company American Residential Properties, Inc. (ARPI) after Invision alleges its attempts completely failed to get ARPI to pay rehab costs, acquisition costs and equity interests due to Invision.
Invision Capital Management is a local property investment and management company based in Phoenix, Arizona that began jointly developing a portfolio of affordable, entry-level housing in 2010. American Residential Properties is a sizable REIT seeking to grow its portfolio of rental properties. It committed to partner with Invision Capital to jointly build a portfolio of properties in the Phoenix, Indianapolis and Las Vegas markets.
The complaints detail how ARPI committed to a combined portfolio of $40 Million to acquire and rehab properties through Invision and began with a first injection of capital in 2012. By the summer of 2013, Invision acquired a total of 550 properties in the Phoenix, Indianapolis and Las Vegas markets worth an estimated $28 million. Invision alleges that it remediated the properties and began leasing with revenues going to ARPI in what is commonly called a triple net lease. This was a successful venture for a period of time until ARPI allegedly decided to stop funding the acquisitions and the rehab costs. As a result, it is alleged that ARPI eventually defaulted Invision and took over those portfolios based on a lack of enough tenant revenue to pay ARPI the required rent under the triple net lease arrangement. The complaint alleges that this was specifically a result of a lack of initial funding by ARPI to rehab the properties and get them stabilized in order to create enough rent for Invision to remain current on the master lease agreements.
Invision Capital Management also alleges it was forced to file a lawsuit against ARPI after multiple attempts to get the rehab expenses reimbursed by ARPI. In addition to a claim for rehab reimbursement, Invision filed eight other claims including, but not limited to, unjust enrichment, breach of contract and fraud.
Further, Invision alleges that to date, ARPI has not tried to reconcile its failure to pay the costs of rehab, which total over $450,000, and represents just one of the multiple claims filed by Invision, which potentially total more than $8,000,000. By under-funding its commitment to Invision, the suit alleges ARPI was able to squeeze them out and take over the portfolios and the corresponding profits interest of Invision in the assets. Invision alleges that ARPI has also done this with other third party partners such as Landsmith.
ARPI is alleged to have settled its dispute with Landsmith for an undisclosed amount.
About Invision Capital Management
Invision Capital Management is a private Phoenix-based property investment and management company that acquires and then rehabilitates affordable, entry-level housing in select US markets. The Company manages a portfolio of properties that it has been growing since 2010. See http://www.invisioncapitalfunds.com.
Case Info: Maricopa County File ID No.CV2013-017109
Leonard Braumberger, [email protected], http://www.invisioncapitalfunds.com, +1 360-305-9819, [email protected]
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