Landlords endangered tenants with uninhabitable conditions at Indy apartments, lawsuit alleges
Attorney General Todd Rokita files civil action against Lake Castleton Apartments management
Attorney General Todd Rokita and his Homeowner Protection Unit team have filed a civil lawsuit against the owners and property managers of Lake Castleton Apartments in Indianapolis, alleging that they have systematically failed to repair critical systems such as air conditioning and plumbing.
Further, the landlords ignored or failed to promptly address over 130 health code citations, the lawsuit alleges, and continued leasing uninhabitable units in violation of state law.
“We are committed to protecting vulnerable Hoosiers from exploitative practices that threaten their safety and well-being,” Attorney General Rokita said. “All landlords have a legal and moral duty to provide habitable housing, and when they repeatedly fail to do so, my office will hold them accountable. We especiallyproblems with out-of-state landlords.”
Defendants in this case are Lake Castleton Owner LLC, the property owner, and Pepper Pike Property Management LLC, the property management company. Both are foreign limited liability companies registered with the Indiana Secretary of State.
The lawsuit alleges they conducted business in Indiana without fulfilling basic landlord obligations. The complex, which consists of approximately 1,261 units across 97 two-story buildings, is located at 7601 Carlton Arms Drive, Indianapolis. It was acquired in March 2022 by Cleveland-based Pepper Pike Capital Partners for a record $171 million — the highest price ever paid for a single apartment property in Indiana at the time.
Allegations of uninhabitable conditions — including broken air conditioning units, sewage backups, water damage, mold and pest infestations — have been corroborated by actions from the Health and Hospital Corporation of Marion County. Between July 2024 and September 2025, the health department filed approximately 132 ordinance violation cases against the defendants. As of October 24, 2025, 14 of these cases resulted in judgments against Lake Castleton Owner LLC.
Consumer complaints filed with the Attorney General’s office further detail the harm, with tenants reporting collapsed ceilings, prolonged lack of heat or hot water, unresponsive maintenance, and requests to remove negative reviews in exchange for concessions. Site visits by the Homeowner Protection Unit in April and May 2025 documented severe issues, such as damaged bathtubs and units unfit for habitation.
On Oct. 3, 2025, an agreed order appointed a receiver for the property in a separate Marion County court action, highlighting the severity of the ongoing problems.
The lawsuit alleges that the defendants’ conduct violates Indiana’s Deceptive Consumer Sales Act (Ind. Code § 24-5-0.5-1 et seq.) through unfair, abusive, and deceptive acts, including misrepresentations about habitability, as well as systemic violation of landlord-tenant laws under Ind. Code § 32-31-8. The lawsuit primarily aims to secure restitution for affected tenants, including financial losses, as well as injunctive relief to prevent further violations.
It also seeks civil penalties of up to $5,000 per knowing violation, treble damages for senior consumers and reimbursement of the Attorney General’s investigative costs. If necessary, the state may pursue additional remedies in light of the existing receivership. The lawsuit — which is linked here — also requests a jury trial.
Hoosiers are encouraged to contact the Office of the Indiana Attorney General about any suspected scams or scam attempts. Consumers can file a complaint by visiting indianaconsumer.com or calling 1-800-382-5516.
