BCS1 v. The Walk DST

Investor petition to remove The Walk ST, LLC as signatory trustee of The Walk, DST and appoint an independent successor. Walk counterpart of BCS1 on Vintage and BCS2 on Apex. Counsel Potter Anderson & Corroon. Allegations.

Filed 18 Sep 2025. The pleading in this archive is the verified second amended and supplemental petition, efiled 22 Jun 2026 02:48PM EDT (Transaction ID 79836404). The public docket listed that filing 23 Jun 2026. The efiling stamp is C.A. 2025-1055-DG (Gibbs); this site keeps the SEM docket used on the public caption.

Motion to dismiss heard 14 Jul 2026 and taken under advisement. No opinion posted as of 31 Aug 2026. Last public docket noted 17 Aug 2026, a redacted letter on “developments affecting the Delaware Statutory Trusts,” the same letter as on the Vintage BCS1 docket. Not a decision.

The leftover-IB caption on the same DST, as recited here, is The Walk IB, LLC v. The Walk, DST, C.A. 2025-0754-SEM. That pleading is not in this archive. The KHCA bridge case is KHCA v. Versity.

Petition

Petitioners BCS1, DLS1, and MS & DS allege they invested $4,638,609.92 on or about 15 Jun 2022 and hold 18.8628%. A 1 Jun 2026 affidavit of Joseph McQuade (Exhibit M) alleges engagement by holders of another 40.19%; with petitioners, 59.05%. McQuade Law Group is BD-paid in other Emerson / Sherer work; here he is counsel for this investor group via engagement letters. The owner list and signatures are not republished. Allegations.

The petition recites the sealed Trust Agreement (28 Apr 2022) and PPM (28 Apr 2022 plus 29 Apr 2022 supplement) as Exhibits A–B. Those remain sealed (103086818). From those recitals and the circular already on EDGAR: close 29 Apr 2022 at $45,500,000; BankPlus first mortgage $27,834,000 (seven-year; the circular uses the same principal and coupon and does not name the lender); bridge alleged about $15.95 million (the petition uses $15,959,315.23 in the introduction and $15,950,315.23 where it cites the supplement); offering $24,694,414, alleged fully subscribed. Master tenant The Walk LeaseCo; property manager Book & Ladder; asset manager Versity Invest / Crew. Delaware Trustee Sorensen Entity Services; Independent Trustee Chris Sorensen. Wettengel alleged 76% of Crew, Muro 24%. Offering, lease, and PMA live on Walk.

The petition alleges investor proceeds were not used to repay the bridge or retire the initial beneficiary; that KHCA then claimed the same interests the petitioners bought; that the signatory trustee refused books-and-records demands (28 Feb 2025 and 10 Jul 2025), including the beneficial-owner list needed for a majority vote under Trust Agreement §10.01; that distributions stopped or were reduced; and that Crew is moving toward a sale or 721 that would devalue holders to pay Crew’s lenders. It recites UCC-1s against Crew, the initial beneficiary, and the signatory trustee, including unsold interests. Allegations.

Three counts: declaration of Cause (willful misconduct, fraud, and/or gross negligence) under §10.01; declaration that the majority-vote, BankPlus-consent, and guaranty-release conditions are excused under the prevention doctrine; removal and appointment of an independent successor. Verifications of Brian, Daniel, and Marvin Schreiber are separate docket items (103086815–817) and are not in this PDF.

Exhibits

Exhibits C–M are the public bundle. Trust Agreement and PPM stay sealed as A–B.

• C — Nelson v. Wettengel, Orange County 30-2023-01356667, ROA 2 (20 Oct 2023). First copy of that complaint in this archive. Allegations.
• D — 3 Dec 2023 term sheet (KHCA NYSCEF Doc 241). Same instrument attached to the later JAMS award. Named bridge-lender schedule not republished.
• E — Secured Income Fund-II v. Sunstone Anaheim Owner, Orange County 30-2025-01524765 (6 Nov 2025). Alleges a $13.4 million 26 Jun 2023 loan to Sunstone Anaheim Owner and Greyrock Wolf, Wettengel guaranty, $14,419,638.71 as of 8 Oct 2025. Collateral alleged: Days Inn 1030 W. Ball Rd, Anaheim; Budget Inn 1042 W. Ball Rd, Anaheim; 1980 Valley Rd, Reno. That pleading is not a separate page here.
• F — Sunstone Development, LLC Chapter 11 petition, C.D. Cal. Bankr. 8:25-bk-11049-TA (later SC), Doc 1, filed 22 Apr 2025. Wettengel, manager. Affiliate NB Strands, LLC, 8:24-bk-12640-SC (16 Oct 2024). This is the petition, not Doc 72. The petition body had written “Sunset” / 11045; the exhibit is Sunstone / 11049.
• G — KHCA opposition to REITLER KAILAS & ROSENBLATT LLP withdrawal (NYSCEF Doc 257).
• H — KHCA original verified complaint, NYSCEF Doc 49. Already on disk as BCS2 Exhibit E. Not the first amended complaint (Doc 119).
• I — Bannon 17 Dec 2025 interim order, KHCA Mot. 013, NYSCEF Doc 505. Defendants enjoined from transferring property except ordinary course.
• J — Vintage IB verified complaint, C.A. 2025-0757. Already on disk.
• K — Nelson v. Crew, Orange County 30-2025-01499716 (28 Jul 2025). Already on disk.
• L — Versity I / Nelson / NBPRE, Orange County 30-2025-01535878 (24 Dec 2025). Already on disk.
• M — McQuade affidavit, 1 Jun 2026. Majority allegation above. Attachments omitted.

The petition also recites One on 4th IB, LLC v. One on 4th, DST, C.A. 2025-0753-SEM, and Hayworth IB. The One on 4th IB pleading is not in this archive. Recitals of the Apex money judgment and the JAMS / Nelson awards follow the entered instruments on those case pages, not the petition’s paraphrases.