The Augusta Commission could be off the hook for enforcing the city’s building ordinances for safe housing if the financial group that signed up to buy the decrepit Azalea Park Apartments is successful in court.
On May 27, 2021, SMJ Investments signed an agreement with the Azalea Sureste Partners to buy the Azalea Park Apartments at 1814 Fayetteville Drive, for $10.5 million. The price was dropped to $10 million after an inspection of the property, and by September, the current owners agreed to fix code violations and put up $500,000 for repairs to building A.
That effectively dropped the purchase price to $9.5 million, according to the Richmond County Superior Court lawsuit SMJ Investments filed last October.
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According to the city records, the current assessed value of the apartment complex is just under $7.58 million.
SMJ Investments claims the Azalea Sureste Partners not only failed to do the promised repairs but also tried to falsify legal documents to make it appear SMJ Investments defaulted on the deal. SMJ Investments contends the ruse of default is Azalea Sureste Partners’ attempt to steal the $300,000 in earnest money SMJ Investments put down on the complex.
The list of city code violations at Azalea Park is extensive in nearly every building on the property, according to the lawsuit. One of the apartment buildings has been condemned by the city. The list of violations includes roof leaks that have led to extensive water damage in the apartments. Appliances as well as heating and air systems in one building don’t work. There’s exposed wiring, holes in walls, roach and rat infestations, broken and improperly installed sewer lines, and the owners haven’t obtained city permits to even start work on the fire damage to two buildings, according to the lawsuit.
SMJ Investments claims in the lawsuit that because the legal conflict involves property, financial award is not adequate compensation. SMJ Investments asks the judge to order Azalea Sureste Partners to complete the repairs that were promised in the sales agreement. SMJ Investments is seeking a court order to enforce the agreement.
The lawsuit is just the latest controversy surrounding the troubled apartment complex.
After numerous complaints, the Augusta Planning and Zoning Department placed the complex owners on probation in September when code enforcement officials found 23 serious violations at the complex,
Fire has also been a continuing issue for the complex with firefighters called to respond to three fires in the last 18 months, according to Jason DeHart, public information officer for the Augusta Fire Department.
The latest fire seems to have been electrical in nature as the smoke was observed coming from the walls. Georgia power had to be called in to cut power to the complex so that firefighters could battle the Jan. 18 blaze.
Seven families were displaced due to fire and smoke damage to their units and the Red Cross was called to assist the stricken families.
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On Jan. 25, the Public Services Committee demanded that the Planning and Zoning Commission file a complete report on the hazardous conditions at the next meeting on Feb. 8. If the problems are not fixed to code standards, the Augusta Commission can then move to revoke the business license which would displace over 70 remaining tenant families.
District 6 Commissioner Ben Hasan said at the meeting he hopes most of the severe problems at Azalea Park will have been resolved by the February meeting as any action by the commission will create more hardship for the tenants who live on the property.
“Rents are going up all over the city. The only reason people are living there is that’s all they can afford. It’s a bad climate to be in,” Hasan said.
Adding to the woes, a dead body was found on the property Sunday morning. The Richmond County Sheriff’s Office reported responding to a call about a shooting at the 706 Club. Deputies found the body of Kevin Coatney, 20, on the Azalea Parks Apartments property. The exact location was not specified. The coroner reported that Coatney was taken to Augusta University Medical Center, where he was pronounced dead at 2:45 a.m.
Senior reporter Scott Hudson contributed to this news story.
Sandy Hodson is a staff reporter covering courts for The Augusta Press. Reach her at sandy@theaugustapress.com.
