realestate

Mesquite Takes Legal Action Against Nitya Capital Affiliate for Poor Apartment Conditions

Legal Battle Erupts: Mesquite Takes on Tradewind Apartments Owner

T
he city of Mesquite is in a legal dispute with the owner and manager of Tradewind Apartments, located at 2136 Tradewind Drive. The city filed a lawsuit against Texas Workforce Housing Foundation, a non-profit organization that owns the complex, and Residences at Tradewind Apartments LLC, the management firm. The lawsuit was filed in Dallas County earlier this month and alleges that more than 750 citations have been issued to the complex since 2003 for various issues such as lack of air conditioning and water outages.

    Nitya Capital initially purchased the 308-unit property in 2021 and later sold it to the Texas Workforce Housing Foundation in 2023. However, a 99-year lease agreement allowed Nitya to maintain control over the complex’s management. The problems at Tradewind Apartments began soon after Nitya Capital's acquisition, prompting several meetings with city officials to address the necessary repairs. Despite these discussions in 2021, 2022, and 2023, the conditions remained substandard. The situation worsened during the summers of 2022 and 2023 as residents endured extended periods without air conditioning, a serious concern given Texas' extreme heat. In January 2024, residents faced a hot water outage and a partial shutdown of all water services.

    City Manager Cliff Keheley stated, "The City expects all landlords to provide safe and sanitary conditions for all tenants." The city's actions are a necessary step to seek improved living conditions for the residents at the Tradewind Apartments.

    Representing Tradewind Apartments, attorney Daniel Rowland argued that the property was already in poor condition before Nitya Capital's involvement. He claimed that Nitya had invested over $850,000 in maintenance between October 2021 and April 2023 and argued that the city was targeting them unfairly. Rowland stated, "It’s frustrating because that money that we put to the citations we’d rather put into the property to fix it up, and that’s what we’ve been trying to tell them for this entire time."

    The City of Mesquite is seeking a court order to enforce code compliance and impose a fine of $1,000 per day for each day of noncompliance. A hearing is scheduled for October 3, and Tradewind Apartments has yet to file a formal response to the lawsuit.

Mesquite city officials sue Nitya Capital affiliate over substandard apartment conditions.