News / Law
American Residential Properties Inc Forces Invision Capital Management to Sue After Several Failed Negotiations
Invision Capital Management is a local property investment and management company based in Phoenix, Arizona. Several years ago Invision partnered with American Residential Properties to jointly build a portfolio of properties in Phoenix, Indianapolis and Las Vegas markets. American Residential Properties is a sizable REIT seeking to grow its portfolio of rental properties.
The complaints against ARPI detail how the company had committed to a combined portfolio of $40 million to acquire and rehab properties through Invision beginning in 2012. By the summer of 2013, Invision had acquired a total of 550 properties in Phoenix, Indianapolis and Las Vegas with an estimated worth of $28 million. According to Invision, the company had remediated the properties and began leasing with revenues going to ARPI through a triple net lease.
After a period of time, ARPI allegedly decided to stop funding the acquisitions and the rehab costs and as a direct result, ARPI allegedly 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.
ARPI is alleged to have settled a similar dispute with Landsmith for an undisclosed amount, however, after several negotiations failed, Invision alleges that it was forced to sue ARPI for unjust enrichment, breach of contract and fraud to name a few.
As of September 4th, Invision alleges that ARPI has not tried to reconcile its failure to pay the costs of rehab. Invision also alleges that ARPI has not included mention of this lawsuit in their SEC filings.
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 U.S. markets. The Company manages a portfolio of properties that it has been growing since 2010.
