08/31/2010 // West Palm Beach, FL, USA // Tara Monks // Tara Monks
Philadelphia, PA – On Monday, August 30, 2010, 51 owners of condominium units within the 43-story Murano at 21st and Market streets in Center City filed a lawsuit against Thomas Properties Inc. of Los Angeles, as reported by the Philadelphia Enquirer.
The 345-page lawsuit accuses Thomas Properties, along with real estate agents and others, “of misstatements and lies about the level of sales at the Murano, along with other misinformation about the property and the units, from the beginning of marketing in 2005 through at least August 2009.”
According to The Enquirer, Thomas, in efforts to accelerate sales, hired Accelerated Marketing, of Boston, to auction 40 units of the property.
The 40 units were sold at prices concordant with the realities of the current market, which shows a 7 percent decline in value since August 2007. Other sales at the Murano followed. Twelve more units sold in the second quarter of this year.
The June 30 quarterly report released by Thomas stated that the increase in after-tax cash flow for January to June compared with the same period of 2009 because of “increased Murano condominium sales.”
The same report stated that Thomas had extended the construction loan secured by the remaining units at Murano until July 31, with the right to two six-month extensions.
Thomas Properties Inc. did not return calls for comment on Monday.
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