GVA’s Alan Stalcup could possibly be going through a hefty penalty after a court docket sided with a lender searching for as much as $110 million..
Starwood was awarded abstract judgment this week in three New York instances in opposition to Stalcup personally, over his function as CEO of the Texas-based multifamily syndicator GVA. The lender said Stalcup owes the firm money after he breached “bad boy” recourse guarantee agreements he signed on loans tied to Atlanta, Orlando and Nashville-area properties.
How a lot Stalcup could need to pay on the ensures continues to be up within the air. Starwood has demanded as much as $110 million throughout the three fits filed in June. The court docket ordered a judgment of $7.9 million in opposition to Stalcup in a single case, though that judgment has not but been entered. Within the different instances, complete judgment will likely be labored out after discovery.
Paul Lackey, a accomplice at Stinson who’s representing Stalcup within the fits, stated Stalcup disagrees with the rulings and has filed appeals.
“These issues arose from market circumstances affecting your entire multifamily sector and there aren’t even any allegations of misconduct by him,” Lackey stated in an announcement.
Lackey stated the selections are improper partly as a result of the underlying properties have been price as a lot or greater than the debt.
Starwood claimed within the three New York Supreme Courtroom instances that GVA-connected debtors failed to deal with liens on the properties introduced by third events. These liens triggered agreements that Stalcup signed, saying he could be accountable for the debt beneath sure circumstances, the lender argued.
Attorneys for Starwood didn’t reply to a request for remark.
The court docket choices could possibly be a troubling signal for Stalcup, who’s going through a number of fits from lenders and traders tied to GVA, with some alleging fraud.
Stalcup gained prominence in actual property together with his multifamily syndicator GVA. The corporate was turning a 44 % inside fee of return at its peak, Stalcup has stated, earlier than rates of interest rose and the plan was now not profitable.
Stalcup has blamed GVA’s losses on interest rate changes and the multifamily market. His authorized adversaries have as an alternative stated they have been defrauded.
An organization related to Texas investor Bryan Kastleman has sued Stalcup and GVA accusing the company of re-packaging bad debt as assets. Stalcup has countered that paperwork within the case have been doctored by a former worker and has offered professional testimony that the transfers have been in keeping with IRS guidelines.
Stalcup can be going through a New York swimsuit from lender Profit Road Companions linked to $346 million in loans. The lender in 2025 accused GVA of “committing forgery and fraud that may make even brazen criminals blush.” The lender stated GVA misappropriated insurance coverage proceeds, co-mingled tenant safety deposits and let the buildings underlying the mortgage fall into waste and disrepair. Discovery and depositions have began in that case.
One other investor, Overwatch Fund, beforehand filed a case in opposition to GVA alleging fraud, however the plaintiff withdrew the case, which was then dismissed and can’t be refiled. An affidavit from Overwatch CEO Ben Loughry has stated the corporate was unable to search out proof supporting the allegations that GVA had transferred at the very least $100 million into trusts with the intention to defraud collectors.
“You’re an investor and also you need some cures,” Stalcup stated of his accusers in an interview with The Actual Deal earlier this yr. “If you happen to’re indignant and also you’re caught, how do you truly get cash? Effectively, it’s a must to declare fraud.”
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