The walls are closing in on Alan Stalcup
The head of GVA was slapped with yet another suit alleging he went behind investors’ backs on a deal by scoring a secret loan and cross-collateralizing it with another portfolio.
This time, the investor filing suit is upping the ante, alleging Stalcup is taking steps to hide assets from creditors by “fraudulently transferring them into trusts” in violation of Texas state law.
Stalcup did not respond to a request for comment.
The claims lodged by Prudent Capital Investments, an Austin-area firm, focus on Stalcup’s failure to disclose that he had taken out a $153 million loan to finance the so-called Carolina Roundup deal without its knowledge.
GVA in 2022 paid $132 million for the portfolio, which includes 11 properties in the Carolinas and Oklahoma, and told Prudent and other investors he would tap a $95 million loan to close the deal, according to the suit.
Stalcup then cross-collateralized the $153 million loan — originated by Benefit Street Partners — with additional properties Prudent had not put equity into. The terms gave Benefit Street the right to seize the Carolina Roundup if Stalcup failed to pay back the loan, the complaint alleges.
Because Stalcup has faced a steady stream of foreclosure filings, Prudent’s fear is GVA may also default on the $153 million loan, jeopardizing Prudent’s investment.
Overwatch Fund, another investor in the Carolina Roundup, lobbed similar allegations at Stalcup in May. A court this month approved a protective order that would keep certain information in the case confidential or “for attorney’s eyes only,” according to the order.
Prudent’s allegations cut through some of that opacity.
“With his real estate empire crumbling and his debts and creditors mounting, Stalcup has begun attempting to hide his and GVA’s assets in the Fernald Point Trusts,” the firm writes in the complaint, referring to a trust GVA allegedly opened to fraudulently conceal his assets.
Prudent claims Stalcup as of early August had moved $100 million in assets into the trusts, a move that defrauds creditors, including Prudent.
Creditor is defined broadly under Texas law, and can encompass any person that has a claim to payment or property. Prudent, which has asked a court to award it punitive damages and disgorgement of the fees it paid to GVA, has such a claim.
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GVA, a syndicator that grew at a rate rivaling Tides Equities, faced foreclosure filings across the Texas Triangle as of January and had defaulted on $600 million in debt. Stalcup in March lost the 285-unit Solara in San Antonio to lender LoanCore Capital. The property sold for less than half of the $56 million loan is collateralized.
Overwatch, which also invested in the Solara, sued GVA in April over an alleged $7 million equity loss it weathered after the foreclosure.