T
ides Equities' principals Sean Kia and Ryan Andrade are facing yet another lawsuit from a lender, Electra Capital, which claims they triggered recourse guarantees on two mezzanine loans backed by Texas apartment complexes. The loans, totaling $8 million, were secured by the Tides on Randol West in Fort Worth and the Tides on Green Oaks in Arlington. As guarantors, Kia and Andrade are personally liable for damages.

    Electra Capital's CEO Sam Greenblatt did not comment on the lawsuit. The complaint alleges that Kia and Andrade failed to address issues with the properties, including outstanding accounts payable, mechanics liens, judgments, and uncompleted renovations. Electra claims this was a breach of their contractual obligations, which required them to address these issues.

    The lender is seeking $6 million from Kia and Andrade personally for breaching guarantees, plus attorney's fees. This lawsuit adds to the growing list of complaints against Tides Equities' principals, with Starwood Mortgage Capital, Acres Capital, and Rialto Capital Advisors also filing suits over personal guarantees. The total potential liability for Kia and Andrade could be as high as $68 million.

    The recent surge in lawsuits has raised questions about whether the personal liabilities of Tides principals are now high enough to bankrupt them. Just a few weeks ago, Benefit Street Partners retook control of another Tides property after the sponsors defaulted on nearly $67 million in debt.