Exterior of Lakeside Tower when still under construction

The Lakeside Tower in Flower Mound, Texas has attracted a mechanics lien for $12 million from general contractor Yates Construction.

Located at 2800 Lakeside Pkwy, the condo tower was developed by Realty Capital Management LLC, a Tennessee-based firm.

Lakeside Tower is a 16-story luxury condo with 48 residences, four villas, two bungalows, and several amenities. The units range between 1,400 and 6,200 square feet, and the prices range between $700K and $4M. All in all, the tower has a square footage of 220,000 square feet.

Yates Construction was declared the general contractor of the project in 2016.

As stated by Richard Myers, Managing Director of Realty Capital Management: “We are very excited to be working with Yates Construction…Yates has assembled a great team of experienced high-rise experts and after about a year of meeting and planning we are looking forward to getting the Tower in the air.”

Lakeside Tower is situated on the banks of Grapevine Lake in the Dallas-Fort Worth suburb of Flower Mound. The tower is part of a massive $1 billion mixed-use development, the first of its kind in Flower Mound.

According to Alex Brown of Realty Capital in June of 2020, “the concept of a 16-story condominium in the suburbs of DFW was a difficult sell to the capital markets.” As a result, it took a year to find financial partners that shared the developers’ vision. Realty Capital Partners and Real Capital Solutions provided equity for the development and Trez Capital and Prosperity Bank provided the debt.

With signs of initial success, a reported 60% of the units were pre-sold to homebuyers in 2017.

After years of planning, Lakeside Tower broke ground in 2017. The development opened its doors in June of 2020.

Yates Construction claims over $12M is owed

Despite having sold over half of the units before doors opened, the owner of the property — RCS & RCM Lakeside LLC — is in debt to general contractor Yates for the amount of $12,186,180.63.

Yates filed a mechanics lien to claim those unpaid invoices on September 4, 2020 at the Travis County Clerk’s Office.

According to the lien claim, Yates provided labor and materials described as “the construction of and improvement to” the Lakeside Tower development.

A mechanics lien, also known as a construction lien, is filed when a contractor goes unpaid on a construction project. Mechanics liens attach to a property, which can hinder its sale until the contractor is paid.

According to Texas lien law, general contractors have until the 15th day of the third month after the last month labor and materials were furnished to file a mechanics lien on residential projects.

Additionally, on residential projects general contractors can enforce a mechanics lien either one year after the last date on which the claimant could file the lien, or one year after the termination, completion, or abandonment of the project.

If the debt between RCS & RCM Lakeside LLC and Yates doesn’t get paid promptly, Yates is well within the requisite timeline to foreclose.