MACON, Ga. — A company that holds the $5 million mortgage on the Crystal Lake Apartments wants a judge to appoint a receiver to manage the troubled complex.
They say the current owners, Crystal Lake Holdings, defaulted on the loan by failing to make monthly payments in January and February.
They claim the owners also violated their loan agreement by failing to maintain the complex and prevent any fire or safety hazard.
The lender, a company named LMREC III Note Holder II Inc., filed a complaint against the Crystal Lake owners March 12 in Bibb County Superior Court.
They claim that the Crystal Lake owners are "wrongfully converting and concealing rent payments" and the complex currently doesn't take in enough revenue to pay operating expenses and keep up their loan payments.
As a result, the property is deteriorating and damaging the value of their investment.
Last month, the Macon Water Authority shut off water to Crystal Lake because the bill was past due. When water was restored, county officials ordered part of the complex evacuated due to health and safety problems.
They want a Bibb County judge to appoint the receiver to ensure that the bills are paid, repairs are made and their investment is protected, until Crystal Lake is sold or foreclosed.
The LMREC lawsuit cites 13WMAZ coverage of last month's mandatory evacuation from Crystal Lake as evidence of its "statte of disrepair."
According to the lawsuit, Crystal Lake Holdings borrowed $5.2 million to buy the complex in May 2017.
We could not reach Crystal Lake Holdings owner Steve Firestone for comment.
On Thursday, Macon Water Authority said they would not turn off water for the complex because the mortgage holder, LMREC III, had paid the past-due water bill, which was around $40,000.
