TLC Property Realty faces lawsuit

An out-of-state company has filed suit against Springfield-based TLC Property Realty LLC for alleged violations of local property management agreements in 2023 and 2024. Accusations in the civil suit include payroll overcharges and improper markups of vendor invoices.

The plaintiffs listed in the case filed late last month in Greene County Circuit Court are 15 commercial real estate properties owned by Fargo, North Dakota-based Edgewood Real Estate Investment Trust. The lawsuit noted the properties were managed up until April 15, 2025, by TLC Property Realty LLC, which along with TLC Properties, is a business unit owned by Coryell Collaborative Group, according to past Springfield Business Journal reporting.

According to the lawsuit petition filed Dec. 29, TLC managed the 15 properties on Edgewood REIT’s behalf until last spring when it was terminated as property manager. An audit conducted in early 2025 revealed “certain irregularities with respect to TLC’s billing and expense reimbursement practices in violation of the management agreements.” The lawsuit petition said the management agreements entitle the plaintiffs to audit and inspect property-related records and obligate TLC to return all records related to its management of the properties upon termination of the agreements.

The apartment properties mentioned in the lawsuit are Cambium, Cambridge Park, Coryell Crossing, Hawthorn Suites, Heer’s Luxury Living, Highland Park, Marion Park, Orchard Park, Sandstone Heights, Scenic Station, Tera Vera, Tera Vera II, The Falcon, Trail’s Bend and Watermill Park. A March 2025 joint news release from Edgewood REIT and TLC Properties said Investors Management and Marketing Inc., also based in Fargo, would take over as the new management company for the properties as of April 15, 2025, according to past Springfield Business Journal reporting.

Based on invoices and payroll allocations submitted by TLC, the audit revealed payroll overcharges totaling roughly $290,000 for 2023 and 2024, according to the lawsuit petition. The overcharges were allegedly attributable to trainers and operations personnel not authorized under the management agreements.

Additionally, the plaintiffs allege improper markups for vendor invoices, totaling $384,000 in 2023 and 2024. According to the lawsuit, TLC consistently applied a 15% markup across invoices in 2024, including maintenance supplies, appliances and office supplies, resulting in $126,000 in excess charges. The year prior, markups averaged 27%, leading to an overcharge of approximately $258,000.

“These markups extended beyond the scope of the management agreement and applied arbitrary discounts to inflated ‘retail’ pricing not verifiable against vendor documentation,” the lawsuit reads.

The plaintiffs in May and August of last year sent letters to TLC notifying the company of what it called material overcharges and unauthorized reimbursements in connection with its management of the properties in 2023 and 2024, according to the lawsuit. It demanded repayment from TLC, along with certain business and financial records of TLC for 2019-22, including all payroll records, financial statements and all company invoices and vendor passthrough billings.

The plaintiffs allege in the lawsuit that TLC never replied to either letter or satisfied any of the company demands. As a result, the plaintiffs are asking in the lawsuit for the court to order an accounting of TLC’s business and financial records for 2019-2024 and the months of January-April 2025, and award all sums wrongfully diverted by TLC or charged to or collected from the plaintiffs.

Additionally, the plaintiffs seek reimbursement of attorneys’ fees and any other relief the court deems appropriate, along with a temporary restraining order to prohibit TLC from altering, concealing or destroying the requested records or any assets that may rightfully belong to the plaintiffs.

Matt Moriarity of Kansas City-based Polsinelli PC is listed as the plaintiff’s attorney in the lawsuit. Moriarity did not return messages seeking comment by press time. Upon contacting Edgewood REIT, SBJ was referred to the company’s legal department, which also did not return a phone call.

Mehl Maigi, director of marketing for TLC Properties, said via email that the company didn’t believe it would be appropriate or fair to all concerned parties to comment on the pending legal matters.

“We’ve only just learned of the lawsuit and haven’t yet been served, but our legal team has obtained copies of what was filed and will be responding accordingly in due course,” Maigi said, declining to identify its legal representation. Attorneys are not listed for the defendants in court records.

Edgewood REIT entered the Springfield market through the 2018 purchase of Missouri Valley REIT Inc. from the local Williams family of businesspeople, according to past reporting, and the company in 2021 purchased the downtown Heer’s building. The company acquired its 16th Springfield property in July 2025, following the purchase of Quarry Town, a mixed-use development in Galloway Village at 4006 S. Lone Pine Ave.