Boston, MA 08/03/2014 (wallstreetpr) – Real Estate investment company, American Residential Properties Inc (NYSE:ARPI) is in a fix after a lawsuit was filed against it by Invision Capital Management in Maricopa County Court.
Role based association
Phoenix-based property investment company, Invision Capital Management was in partnership with ARPI for building a portfolio of properties in the three markets. Both the companies decided to join hands for the acquisition and rehab properties with a portfolio of $40 Million.
Invision being the local company was responsible for the acquisition and other ground work while ARPI provided the funds. As per the association, American Residential Properties Inc (NYSE:ARPI) was responsible for the payment of rehab and acquisition costs as well as equity interests to Invision.
Funds released by American Residential Properties Inc (NYSE:ARPI) in 2012 helped Invision to acquire 550 properties worth $28 million in the Phoenix, Indianapolis and Las Vegas by the summer of 2013. Invision did all the work to remediated properties. The lease amount was sent to ARPI through triple net lease.
Invision eyeing planned fraud
Invision blames American Residential Properties Inc (NYSE:ARPI) for its decision to stop funding required for the acquisition and rehab work. The association was jolted when ARPI started taking over these properties and profits interest of Invision in the assets on the basis of lack of the rent amount payable to the company under a lease arrangement. Invision claims the stoppage of funds burdened the company financially to rehab the properties and to generate rent amount to be paid under the agreement.
Invision has attempted several times to get their dues before going for a lawsuit. Invision has claimed that ARPI seems in a no mood to pay to the company. Invision in its multiple claims has filed a case for rehab reimbursement, as well as unjust behavior, breach of contract and fraud. A total of more than $8,000,000.claim has been filed against ARPI.
American Residential Properties Inc (NYSE:ARPI) was also in trouble with the same claims with Landsmith and had settled the dispute for an undisclosed amount.