ValCap Group Buys Plano Multifamily Property in Receivership

A Plano apartment complex at the center of a legal feud has changed hands after it was put in receivership.

ValCap Group bought Bellevue at Spring Creek, at 2401 W. Spring Creek Parkway, according to a release from GREA, which brokered the sale. The buyer assumed the property’s $33.5 million Freddie Mac loan, which was provided in 2020 and matures in 2030, loan documents show.

The interest rate on the loan is 3.34 percent, according to a letter of intent ValCap filed when the court approved the sale.

The 278-unit garden-style apartment complex was built in 1982 and was more than 90 percent occupied when the sale closed. Amenities include a pool, gym and clubhouse. The property was valued for tax purposes at $36.8 million this year.

The property has been in receivership since November after investors sued owner Nicholas Residential and its founder Paul Panza for mismanaging the property.

When Panza bought the property in 2017, the investors contributed $1.8 million to the acquisition. In September, it was the last property in Nicholas Residential’s portfolio. The investors alleged Panza locked his employees out of the property’s management systems and was diverting funds for the property into his personal bank accounts.

The group also claims Panza has been “engaging in substance abuse” on the job and skipping investor meetings.

Panza has since been removed from managing the property. There’s a trial scheduled for October.

ValCap’s Nick Trajcevski referred to those issues in the sale announcement: “The property had been mismanaged prior and through receivership, and we see a clear path to restoring performance through operational improvements and targeted capital upgrades.”

ValCap is an investor based in Dallas that specializes in acquiring and managing multifamily properties. It manages a portfolio worth $800 million, according to its website.