Victory Park's German Owners and KC-Based Co. At Odds Over Development That Wasn't
An interesting case, originally filed a few weeks ago in Dallas County District Court, showed up at the federal courthouse yesterday: Victory Park UST Joint Venture I, L.P., v RED Development, LLC, which involves "the development of certain commercial property located near the American Airlines Center." The plaintiffs are the German-and-Florida-based owners of Victory Park; the defendant is a Kansas City-HQ'd developer of shopping centers. And the fight stems from a proposed development at Victory that never happened and probably never will.
According to the initial complaint, filed in late August, RED Development and its Dallas offshoot told Victory Park UST back in July 2010 that it had the money lined up for the development -- around $1.5 million, which, says the suit, was to come from the Dallas Police and Fire Pension System via its relationship with CDK Realty Advisors. According to the suit, after RED Dallas said the deal was good to go in the summer of '10, Victory Park UST "agreed to contribute certain commercial real estate in Victory Park to a newly formed partnership in exchange for RED Dallas's agreement to purchase an interest in that new partnership, all for the general purpose of retail development in Victory Park."
But the plaintiffs insist RED Dallas never lived up to its end of the bargain. Attempts were made to revive and/or rework the deal up till May of this year, when it was revealed RED didn't have approval from the police and fire pension fund after all. RED Development and RED Dallas not only deny the allegations, but it's the party that asked for the case to be removed to Dallas federal court. All the relevant docs follow.