Lender sues Texas developer over stalled multi-family project

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By Faith Williams (June 24, 2022, 6:31 p.m. EDT) — Mortgage lender Galaxy LLC filed a lawsuit in Delaware on Friday against Texas-based development firm Guefen Co. and several of its subsidiaries for failing to follow through on a contract building a multi-million dollar luxury multi-family development in Austin, Texas.

In the lawsuit filed with the Delaware Chancellery, Galaxy claimed the developers failed to honor their obligation to develop the Haven at Tech Ridge project, causing the lender to lose nearly $9 million.

Galaxy’s subsidiary GRC LLC’s mortgage loan and equity investment provided 85% of the capital to be used for the development, according to Galaxy’s complaint. The parties have reached a…

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