Tarragon's Practices Leave Sour Taste

Tarragon Corp.(TARR Quote) is hoping to expand its recently formed condo-management business, but the division has already lost one management contract and more could follow because of unhappy residents in Florida.

Last week, the Montreux at Deerwood Lake condo community in Jacksonville, Fla., voted on a new property management company to replace Sage Residential, a division of Tarragon, TheStreet.com has learned.

A resident and board member at the community had threatened legal action against Tarragon over alleged self-dealing. Rather than face a lawsuit, Tarragon agreed to terminate Sage's management contract at Montreux, according to documents obtained by TheStreet.com. ...