University Affiliates Sue Developers

A group of Harvard and MIT affiliates are suing the developers of their planned residential community for preventing them from moving into an apartment complex in Kendall Square.

Though the affiliates have already submitted their deposits, they allege that the developers have failed to take the necessary steps towards reaching a final closing date.

The plaintiffs—a dozen current and former faculty members who have put down initial deposits for units in 303 Third Street—are part of an independent project known as “University Residential Communities” that has sought to create a residential cooperative that would provide an academic setting in the Cambridge environment.

The project originally limited rooms in the apartment complex to older affiliates of MIT and Harvard, but has since opened up to anyone seeking a condominium in that community.

A few years ago, URC organizers entered into an agreement with the developers of the complex—a joint venture between Equity Residential and Extell Development Co.—in which 168 units of one of the two buildings would be sold through URC.

According to URC Executive Manager Bob Simha, the former director of planning at MIT, 38 people signed purchase and sale contracts and submitted their initial deposits.

He said that they have received more than 60 other inquiries, but further contracts have been put on hold.

In the past year, plaintiff and MIT President Emeritus Paul E. Gray said that the developers had altered their plans and that communication between the developers and URC has broken down. In a meeting with URC last November, the developers voiced their desire to convert the remaining condominiums into rentals, but has not met with the plaintiffs since, according to Gray.

“Instead of coming out and saying, ‘look we’ve changed our mind,’they’ve ignored us since November,” said Gray.

Equity Residential spokesman Marty McKenna declined to comment on the project because litigation is still pending.

With no word on the closing dates for the condominiums, those who have entered into purchase and sale contracts can neither move into their condominiums nor back out of the contracts without losing their deposits. Nevertheless, the twelve plaintiffs are still intent on moving into their apartments. Some had sold their former apartments under the assumption that the building would be completed in 2008.

“They are hanging by their thumbs out there,” said Simha. “You can imagine how uncomfortable that can be.”

As part of the suit, the developers are required to provide an explanation of the delay within 30 days of the April 13 filing, said the plaintiff’s attorney, Jeffrey J. Upton.

If communication resumes, “this need not be a contentious fight,” Upton said.

—Staff writer Noah S. Rayman can be reached at nrayman@fas.harvard.edu.