University House halts leasing of LSU area apartments
Owners of University House, an upscale housing community near LSU previously called “The Standard,” have halted new leases and are moving some residents from the property because of what owners describe as “substantial defects” and “pervasive leaking,” WAFB-TV reports.
In 2017, Daily Report broke the news that the owners of the 287-unit University House, The Scion Group, are suing LMK Baton Rouge Construction claiming they’ve already encountered $3.2 million in needed repairs to the property and anticipate having to spend millions more.
The owners say that after purchasing the relatively new property in 2015 for $108.6 million, it was discovered to be riddled with structural problems.
Since the company halted leasing, two current residents say they’ve been given the option to either move to one of The Scion Group’s other housing communities in Baton Rouge or remain at the current property and endure major construction noise.
University House, whose purchase was the most expensive commercial transaction in Baton Rouge on record, was featured in Business Report’s latest cover package.
Business Report analyzed the assessments of more than a dozen of the largest commercial transactions in the parish between 2014 and 2016—deals that occurred several years ago and should have been updated by now on the tax rolls.
On average, the properties are assessed at just 55%—slightly more than half—of their sale price, resulting in a potential loss to the parish of more than $2.3 million in just a single year.
University House was assessed at just $3.3 million, meaning the owners pay about one third of the taxes they would pay if it had been assessed at its selling price.