Developer accused of duping buyer of $17M Regis apartments

The buyer of a million apartment building on the city s northside says he was defrauded by its developer who misled him about Regis University s long-term lease there Slipstream Properties a small Glendale-based developer of multifamily buildings turned King St into the -unit Vincent J Boryla Apartments between and when the university signed a -year lease Catamount Constructors handled construction The building s namesake Boryla was a professional basketball participant who won a gold medal in and later became general manager of the Denver Nuggets He was a Regis University donor and his son attended Regis High School before a professional football career In August the apartment building was bought for million by MJM Real Estate Investments a Tennessee company registered to a Robert Maxwell in Nashville Soon after MJM learned that not all was as it seemed according to a lawsuit it filed April MJM was alerted by Regis to the problems plaguing the premises that lawsuit recalls A boiler failure in the winter of was improperly fixed causing further damage to the boilers and an air conditioning difficulty before the sale wasn t fixed at all according to MJM Slipstream and Regis had a pattern and practice in which Regis would defer maintenance damaging the premises and Slipstream would pay for the damage MJM maintains That surprised MJM which says it was notified that the Regis lease was a triple net requiring Regis to pay for maintenance taxes and insurance coverage In reality Regis had borne little to no responsibility for maintaining the premises last month s lawsuit states By the summer of the university was demanding reimbursement for it had spent on repairs and warning MJM that five boilers would soon need to be replaced at a cost of alongside in cooling system fixes Those expenses fell on MJM Related Articles Global law firm moves into top floor of M Denver office tower Metro Denver homeowners can in the end exhale after years of rising home values and taxes Denver firm breaks ground on M multifamily project in Capitol Hill New industrial evolution in Arvada lands first tenant Colorado and Denver narrated owners to cut their buildings carbon emissions Did the rules go too far For that it blames Slipstream The buyer says the local developer tricked it into thinking the lease with Regis was a triple net and that the -square-foot building was in good condition It accuses Slipstream of common law fraud breach of contract and negligence This is the first we ve heard about this Peter Eklund a partner at Slipstream informed BusinessDen We haven t heard from the buyer until this Other than that we don t have any comment A spokeswoman and legal director for Regis which is not accused of wrongdoing and is not a party to the scenario declined to discuss the lawsuit or its lease along King Street MJM s attorney is Leah Capritta with the Denver office of Holland Knight Get more real estate and business news by signing up for our weekly newsletter On the Block