Multifamily investment firm Lurin Capital, led by Jon Venetos, is facing legal action from the city of Huntsville, Alabama, over the condition of one of its properties. The lawsuit was filed on January 2 in Madison County Circuit Court and claims that Lurin has abandoned The Flats at Redstone, a 231-unit apartment complex located at 2022 Golf Road.
According to the complaint, the property has been vacant for two years and lacks utility service. The city alleges that there are missing windows and doors, boarded-up exteriors, overgrown vegetation, siding hanging from buildings, a deteriorating playset, and a pool filled with dirty water. The lawsuit states that these conditions “pose a substantial risk of illness or injury to anyone who enters the property.”
Huntsville officials first raised concerns about safety issues at the complex in February 2022. Although Lurin secured building permits for improvements, not all work was completed as required. In August, the city issued seven code violation notices to Venetos’ company and set a deadline of December 15 to address them. The lawsuit asserts that these violations were not corrected.
The city is asking the court for an injunction ordering Lurin to make repairs and requesting authorization to sell the property if compliance is not achieved.
This legal move comes as residents at another Lurin-owned Huntsville property, The Sutton at 190 Shelton Road, have reportedly gone days without running water. According to a local NBC affiliate report, tenants have had to use bottled water for bathing and flushing toilets.
Lurin Capital and Jon Venetos are facing increasing scrutiny from lenders, vendors, municipalities, and landlords due to unpaid bills and reported poor conditions at their properties. Earlier cases include a temporary restraining order in November requiring evacuation of residents from a Plano property owned by Lurin because of unsafe living conditions such as lack of water and gas.
Acore Capital Mortgage initiated legal proceedings last spring after alleging that Venetos defaulted on nearly $400 million in loans tied to twelve Florida properties. Since then, Fannie Mae has sued for an alleged $77 million default while Vista Bank and Keybank also filed lawsuits claiming defaults on other loans. In October lawsuits brought by Acore Capital Mortgage claim that Venetos personally guaranteed money borrowed but still owes $81 million.
Venetos also faces litigation from Rosewood Property Group over allegations he failed to honor his lease obligations for his Uptown Dallas office space at Rosewood Court; they claim he owes $5.3 million.
Some lawsuits by Keybank and Vista allege fraud. Keybank claims Venetos transferred more than $24,000 from business accounts into a personal account. Vista accuses him of submitting falsified lender account statements when seeking additional loans elsewhere. Additionally, former employees have accused Lurin Capital of inflating repair costs on loan reimbursement requests by submitting invoices for work never performed.
