SAN MARCOS, Texas (KXAN) — A total of 35 tenants who signed leases with an unfinished student housing complex in San Marcos have filed suit against it, alleging fraud and deceptive trade practices, according to the lawsuit.
The lawsuit says instead of “the newest, most upscale” apartments, Haven at Thorpe Lane “delivered a house of lies” and the defendants are “now attempting to force the students to move in during the height of the Covid-19 pandemic when all college classes have been moved online and most students have moved back home for the remainder of the school year.”
KXAN reached out to all defendants for a response to the lawsuit. A separate third-party management company responded Monday afternoon saying it was working to learn more.
Work began at the facility at 316 N Edward Gary St., just south of the Texas State University campus, in 2017. KXAN’s coverage in November 2019 showed students who had leased space before it was finished reported delays upon delays that meant they couldn’t move in. Hundreds of residents were left in limbo. At the time, management said construction issues were to blame, and said they waived months of rent and offered temporary housing.
“At the very time Defendants were promising an on-time move in they knew the building was already far behind schedule,” the lawsuit says, later alleging Haven had been in contact with City of San Marcos officials who were concerned it would not be ready on time. “Defendants never possessed, nor had any intention of paying, the millions of dollars for checks they had promised students in the event of a construction delay.”
The plaintiffs claim in the lawsuit that Haven at Thorpe Lane, LLC, Asset Campus Housing, Inc., Guefen Development Company and Geufen Development Partners, LLC have tried to “intimidate and manipulate students into moving in and making payments on the very leases Defendants defrauded them into signing.” Plaintiffs say they were told they were “required to move in” unless they could find someone to take over their spots.
Guefen Development Partners, LLC is a large developer in Houston, the lawsuit says, and Asset Campus Housing, Inc. is the largest third-party property management company for student housing in the United States.
The plaintiffs are requesting a judgement that the leases are not enforceable, actual damahes, exemplary damages and attorney fees.
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