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GVA’s Alan Stalcup sued over private jet
Stalcup sold jet right before properties were up for foreclosure
Alan Stalcup is no stranger to legal battles, but this one’s on a whole new plane.
Stalcup, the founder of troubled multifamily syndicator GVA, is being sued after allegedly buying a private jet but not handing out enough flights as part of the deal.
VMD Aviation sued Stalcup, who lives in Austin, claiming he bought a 2000 Cessna Citation X for $2 million and agreed to give VMD 11 roundtrip flights from Southern California to Idaho, according to a court complaint filed with Santa Barbara Superior Court. The flights were “personally guaranteed” by Stalcup, who allegedly rents a home in Santa Barbara, according to VMD.
But before he gave VMD all 11 flights, Stalcup sold the plane, the complaint said. The remaining 7.5 roundtrip flights are valued at more than $450,000.
Stalcup did not respond to a request for comment and has not answered the court complaint.
Federal aviation records show Stalcup sold his plane in October, though a price was not disclosed.
Stalcup sold the plane weeks before more than 10 GVA properties across Texas, South Carolina and Tennessee landed in foreclosure, according to notices of default and media reports.
The firm has defaulted on a $288 million loan from LoanCore Capital, tied to four apartment complexes across the Sun Belt, and $125 million in other LoanCore-issued debt tied to two properties in Austin. It is delinquent on $56 million in loans from Ready Capital.
GVA is not the only syndicator — those who pool cash to buy property — that is struggling. Many, including Elevate and Tides Equities, used floating-rate debt while rates were low to buy properties and are now being squeezed by soaring debt obligations. Many of these borrowers have now defaulted on their loans.
GVA more than doubled the size of its apartment portfolio in 2022, making it the 41st largest landlord in the U.S., according to the National Multifamily Housing Council. The firm made hefty portfolio buys, too, including 2,900 units across Oklahoma, North Carolina and South Carolina for $458 million, and 1,670 units across Texas, South Carolina and Tennessee for $380 million.