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edProperties Realty Advisors is suing 11 defendants, including two doctors and a healthcare investment firm, over allegations of a "stinky" conspiracy to hide severe plumbing problems at a $36 million healthcare property north of Houston. The Dallas-based private equity firm claims it was misled into buying the three-story building in May, which had been developed by the Bryant Stacy Group in partnership with Global Healthcare Partners.

    MedProperties is seeking to undo the sale and is requesting compensatory damages and attorney fees. It alleges that defendants conspired to artificially inflate the price of the property by hiding the severity of sewage leaks. The lawsuit claims that two doctors who previously owned the land, Jason DeMattia and Maninder Guram, traded it for a 49 percent stake in exchange for leasing more space than they needed, convincing MedProperties that the building deserved a higher valuation.

    The suit also alleges that Guram abandoned his lease after the sale and then used the same plumbing problems he had conspired to conceal to get out of his lease. Internal emails between Transwestern employees mention a severe leak in March 2023 as a "literal 's' storm" and recommend a biohazard team be onsite.

    MedProperties claims it wasn't aware of the plumbing issues until a month after signing the purchase agreement, when an employee mentioned a recent leak had penetrated the third floor. The firm is asking for a court order to undo the sale due to alleged fraud and conspiracy.