Texas Monthly’s pub­lisher sues project de­vel­oper

Uni­ver­sity Park hasn’t grown as promised, law­suit con­tends

Austin American-Statesman - - BUSINESS & PERSONAL FINANCE - By Shonda No­vak

The par­ent com­pany of Texas Monthly mag­a­zine is su­ing the de­vel­oper of its new head­quar­ters build­ing.

Em­mis Pub­lish­ing LP’s law­suit, filed this week in state District Court, ac­cuses Andy Sar­wal and his in­vestor group, East Av­enue IG LP, of breach­ing a lease agree­ment.

Sar­wal was the orig­i­nal de­vel­oper of Uni­ver­sity Park, the project at the for­mer Con­cor­dia Uni­ver­sity cam­pus.

Texas Monthly is the sole ten­ant in the only of­fice build­ing con­structed to date in a planned $750 mil­lion devel­op­ment.

Texas Monthly moved into the build­ing in Au­gust.

Len­ders re­cently fore­closed on the eight­story of­fice build­ing on the site, which is west of In­ter­state 35 and north of 32nd Street.

In the law­suit, Em­mis Pub­lish­ing con­tends that Sar­wal and his group failed to pro­vide promised ben­e­fits, in­clud­ing a ho­tel, restau­rants, a health club and a cin­ema or up­scale farm­ers mar­ket gro­cery.

The agree­ment spec­i­fied dates that con­struc­tion was to be com­pleted for the projects, in­clud­ing at least three restau­rants that were to be fin­ished by June 30 and a ho­tel that was

to be built by Jan. 31, 2011.

If those and other build­ings weren’t con­structed by the dead­lines, Sar­wal and his group were to make monthly pay­ments based on a per­cent­age of Texas Monthly’s rent, the law­suit states.

Hy­att has pre­vi­ously said that it in­tends to build a 203room An­daz bou­tique ho­tel at Uni­ver­sity Park.

The law­suit says Sar­wal also failed to de­liver on a brand­ing aware­ness cam­paign for Texas Monthly con­sist­ing of a ban­ner high­light­ing the mag­a­zine’s cover along the park­ing garage, which is vis­i­ble from I-35.

Sar­wal de­clined to com­ment on the law­suit. Wil­liam Rhea, an at­tor­ney for Em­mis Pub­lish­ing, was not avail­able for com­ment.


Andy Sar­wal and his in­vestor group have failed to de­velop the for­mer Con­cor­dia Uni­ver­sity prop­erty as promised, ac­cord­ing to a law­suit by the pub­lisher of Texas Monthly. The mag­a­zine is the sole ten­ant in the only of­fice build­ing built on the land to date.

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