Mesquite Sues Nitya Capital over Apartment Conditions

A legal dispute has erupted between the City of Mesquite and the owner and manager of Tradewind Apartments, located at 2136 Tradewind Drive.

The City of Mesquite has filed a lawsuit against the Texas Workforce Housing Foundation, the non-profit organization that owns the complex, and Residences at Tradewind Apartments LLC, the management firm, the Dallas Morning News reported.

The lawsuit, filed in Dallas County earlier this month, alleges that more than 750 citations have been issued to the complex since 2003, with issues ranging from lack of air conditioning to water outages.

Nitya Capital originally purchased the 308-unit property in 2021 and subsequently sold it to the Texas Workforce Housing Foundation in 2023. However, a 99-year lease agreement with the foundation allowed Nitya to maintain control over the complex’s management, effectively making it the key player in addressing the ongoing issues.

Problems at the Tradewind Apartments reportedly 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. A further crisis occurred in January 2024 when residents faced a hot water outage and a partial shutdown of all water services.

“The City expects all landlords to provide safe and sanitary conditions for all tenants,” said City Manager Cliff Keheley in a statement. “The action taken by the City is a necessary next step to seek improved living conditions for the residents at the Tradewind Apartments.”

Representing Tradewind Apartments, attorney Daniel Rowland disputed the city’s claims, arguing that the property was already in poor condition before Nitya Capital’s involvement. He noted that Nitya had invested over $850,000 in maintenance between October 2021 and April 2023 and claimed the company was being targeted by the city’s actions.

“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,” Rowland said.

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, with Tradewind Apartments yet to file a formal response to the lawsuit.

— Andrew Terrell