Jon Venetos’ Lurin Capital has filed for bankruptcy, stopping the foreclosure sale of a Houston apartment complex owned by the firm. The ownership entity of Latitude 2976 Apartments filed for Chapter 11 protection in the Southern District of Texas on Monday, according to court documents. The foreclosure auction was set for Tuesday.
The bankruptcy filing lists between 50 and 99 creditors and estimates both assets and liabilities at $50 million to $100 million each. Mark Shapiro signed the filing as Lurin Capital’s chief restructuring officer.
“This filing provides us with the time and structure necessary to address our balance sheet and position the property for long-term stability,” Jon Venetos said in a statement.
Lurin Capital’s office is located at Rosewood Court, an Uptown Dallas building at 2101 Cedar Springs. In December, landlord Rosewood Property Company sued Lurin, claiming it abandoned its lease last fall. The lawsuit also alleges that Venetos personally guaranteed the lease and owes $5.3 million.
Fannie Mae has been attempting to take control of Latitude 2976, which includes 734 units at 201 and 301 Wilcrest Drive in Houston. In November, Fannie Mae claimed Lurin defaulted on a $77.2 million mortgage tied to the property. Since then, Latitude 2976 has faced multiple foreclosure notices, with the most recent scheduling a sale for Tuesday.
The bankruptcy automatically halts any foreclosure proceedings.
This development is part of ongoing legal challenges facing Lurin Capital over the past year from lenders, vendors, cities, and landlords regarding unpaid debts.
Earlier lawsuits began when Acore Capital Mortgage accused Venetos of defaulting on nearly $400 million in loans connected to properties in Florida. Fannie Mae later sued over an alleged $77.2 million default related to Latitude 2976. Vista Bank and Keybank have also filed lawsuits alleging defaults; Acore claims Venetos personally guaranteed loans from them and still owes $81 million.
Some lawsuits from Keybank and Vista include fraud allegations against Venetos. Keybank claims he transferred funds from his accounts with them into a personal account totaling $24,570. Vista accuses him of falsifying lender account statements to secure additional loans elsewhere. Former employees have alleged that Lurin submitted inflated repair costs or invoices for work not performed when requesting loan reimbursements from lenders.
Additionally, Lurin has been sued by both Plano (north of Dallas) and Huntsville (Alabama) over conditions at properties owned by the firm.
