INDIANAPOLIS (WISH) — Indiana Attorney General Todd Rokita has filed a civil lawsuit against the owners and managers of Lake Castleton Apartments in Indianapolis, alleging they endangered tenants by failing to maintain habitable living conditions.
The lawsuit, filed Thursday in Marion Superior Court 4, claims that the property management systematically neglected critical repairs, including air conditioning and plumbing, and ignored over 130 health code citations. Despite these issues, the landlords allegedly continued to lease uninhabitable units, violating state law, said a news release issued Tuesday.
The defendants named in the lawsuit are Lake Castleton Owner LLC and Pepper Pike Property Management LLC, both registered as foreign limited liability companies in Indiana. The apartment complex, located at 7601 Carlton Arms Drive, consists of approximately 1,261 units and was acquired for $171 million in March 2022 by Cleveland-based Pepper Pike Capital Partners.
Allegations of uninhabitable conditions at the complex include broken air conditioning units, sewage backups, water damage, mold, and pest infestations. These issues have been corroborated by actions from the Health and Hospital Corp. of Marion County, which filed 132 ordinance violation cases against the defendants between July 2024 and September 2025. As of Oct. 24, 14 of these cases resulted in judgments against Lake Castleton Owner LLC.
Consumer complaints to the attorney general’s office describe severe problems such as collapsed ceilings, prolonged lack of heat or hot water, and unresponsive maintenance. Some tenants reported being asked to remove negative reviews in exchange for concessions. Site visits by the attorney general’s office’s homeowner protection unit documented severe issues, including damaged bathtubs and units unfit for habitation.
On Oct. 3, a separate court action in Marion County appointed a receiver for the property, underscoring the severity of the ongoing problems.
The lawsuit alleges violations of Indiana’s Deceptive Consumer Sales Act and landlord-tenant laws, seeking restitution for affected tenants and civil penalties of up to $5,000 per knowing violation. It also requests a jury trial and aims to prevent further violations through injunctive relief.
Deputy attorney generals Chase M. Haller and Timothy M. Weber filed Rokita’s lawsuit.
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