Lender
KHCA / Knights Hill
Bridge lender. New York Index 651885/2024. About $56 million unpaid on Vintage, Walk, One on 4th, and Hayworth.
Bridge money so Crew could close DSTs before selling the equity. The verified first amended complaint (NYSCEF Doc 119, 13 Aug 2024) alleges they sold syndications on Hayworth, Vintage, Walk, and One on 4th and did not repay the line.
The VIP Bonds circular calls the 27 May 2021 / 12 Apr 2022 revolving mezz the Crayhill Credit Facility (12.50%; $65,361,830 outstanding as of 30 Jun 2023). That first amendment is the loan exhibit already on this page.
That pleading’s table puts alleged misappropriated proceeds at $56,157,281. Alleged uses: Apex South Creek (KHCA had declined to finance on 13 Sep 2022), Dana Point land, Anaheim hotels, an acquisition fee to Versity, and a Capistrano house. Those are allegations. The original unsealed complaint is Doc 49 (filed 17 May 2024; Exhibit E of the Delaware BCS2 DocketAlarm bundle, paywalled). A later amendment the forum flags as Doc 137 (13 Sep 2024) was not pulled from NYSCEF.
Doc 49 says KHCA financed eight Core Assets and was repaid on four; the unpaid four are the ones still on this page. Vintage IB, LLC — the initial beneficiary KHCA funded — sued Vintage in Delaware on 1 Jul 2025 (C.A. 2025-0757). That complaint says KHCA took over as manager of Vintage IB on 30 Jun 2025 and still holds no less than 14% of the beneficial interests. Allegation.
The 12 Apr 2022 LeaseCo side letter (complaint Exhibit D) sends Vintage LeaseCo excess revenue and the disposition / financing / construction fees to Vintage IB until Full Redemption. KHCA is a named third-party beneficiary. The 11 Jan 2022 PPM also says a default on the revolving bridge facility, including a loan unrelated to Vintage, may require Vintage syndication proceeds to pay that facility.
10 Apr 2026 order (Justice Bannon): contract and alter-ego live against Crew / Versity / Wettengel / Muro / Nelson. Fraud and conversion dismissed as duplicative of contract. KHCA appealed the dismissed counts.
First in line on Vintage’s stack. Shulman, on the BiggerPockets thread, recommended rejecting a Capital Square takeover that would load this unpaid bridge onto investors.
Timeline
- 11 Jan 2022Vintage PPM. Maximum offering $75.4 million; ~$62 million Walker & Dunlop / Freddie Mac; Emerson exclusive managing BD. Sponsor named as Versity Investments. Bridge equity ~$50.35 million via a revolving facility; default on an unrelated loan may divert Vintage proceeds. PPM estimates; Form D later lists $88.0 million.
- 2–21 Apr 2022Operating agreement 12 Apr: two managers; initial CFO Jennifer Welker, CIO Frank Muhlon. Same day: Vintage Trust Agreement (IB 100%; Sorensen Entity Services Delaware Trustee; Vintage ST Signatory Trustee; Chris Sorensen Independent Trustee), master lease DST → Vintage LeaseCo (10 years 3 months), Book & Ladder PMA at 2.5% of Monthly Gross Revenues, Walker & Dunlop first mortgage $52,346,000, buy $119.6 million from Vintage Horizon Owner, LLC (PPM and IB complaint), and first sale; Vintage LeaseCo side letter sends excess revenue and disposition fees to Vintage IB until Full Redemption (KHCA is a third-party beneficiary); and the KHCA loan amendment naming the new sponsor — the VIP Bonds circular calls that first amendment the Crayhill Credit Facility and adds Versity Invest as co-guarantor. Form D 21 Apr 2022. Related persons: Wettengel and Muro. Selling group includes Tim Sherer and Brian Nelson at Emerson.
- 30 Jun 2022Hayworth bought for $105,500,000 from TDC Tanglewood (PPM / PSA / circular / Delaware opinion). Senior loan $48,000,000 at 5.25% from TC Debt Opportunities. Same-day master lease (DST → Hayworth Tanglewood LeaseCo; 7 years 3 months) and Book & Ladder PMA at 2.5% of Monthly Gross Revenues; Tanya Muro signed both sides. Versity EquityCo II contributed $50,089,148.27 of bridge equity through Hayworth Tanglewood IB (PPM); the later IB complaint puts the total contribution at $58,959,026.60 including $8,869,878.33 of EquityCo money. Trust Agreement dated 29 Jun. Side letter the same day: excess revenue and disposition/financing/construction fees to the IB until Full Redemption; KHCA agents are third-party beneficiaries.
Hayworth PPM / lease / side letter · C.A. 2025-0748 Exs A, C, D
- 7 Jul 2022Hayworth PPM. Maximum offering $76,767,365 (matches Form D 11 Jul); WealthForge exclusive managing BD; 9.30% load. Sponsor named as Versity Invest. Post-close form. Circular later lists up to $77,578,947.
- 13 Sep 2022KHCA declined to finance Apex South Creek (300-unit Orlando multifamily). Allegation in the KHCA complaints. After the 1 Aug PSA.
- 30 Jun 2023 · circular snapshotVIP Bonds circular as of 30 Jun 2023 (sponsor disclosure, signed 21 Feb 2024). Vintage “fully syndicated”; circular says financing outside the first mortgage repaid — later Vintage IB complaint alleges leftover IB interests. Walk ~1% remaining, ~99% occupied. Hayworth 33.32% remaining, ~81% occupied. One on 4th 20.27% remaining, ~99% occupied. Apex 90.886% remaining, ~91% occupied; leftover-equity notes $40.8 million outstanding. Crayhill line $65,361,830 outstanding.
- 20 Oct–7 Dec 2023Brian Nelson sues Blake in Orange County (20 Oct, 30-2023-01356667). Dismissed without prejudice 7 Dec — the settlement (term sheet 3 Dec 2023, attached as Exhibit A to the 26 Nov 2025 JAMS award). Crew was to buy Nelson’s interests in Versity Investments, NBPRE, and Book & Ladder for $30 million. Closing deadline December 2024. ~18 properties eventually return to him; five stay with Crew.
- Apr–May 2024KHCA files NY Index 651885/2024 (original complaint NYSCEF Doc 49, 17 May 2024). Delaware SOS name change to Crew Enterprises on or about 11 Mar 2024. Nelson files arbitration (JAMS 5200001507 / 5200001580). Distributions stop across the portfolio around May 2024 (4th & J and Oakbrook the same month, per a 16 Apr 2025 post) — the same weeks as the yield-enhancement and rebrand PRs.
- 13 Aug 2024KHCA files a verified first amended complaint (NYSCEF Doc 119). Alleges $56,157,281 of syndication proceeds diverted from Hayworth, Vintage, Walk, and One on 4th. Allegations.
- Dec 2024NY TRO. Unsealed KHCA complaint becomes the thread’s source document.
- 8 May 2025Hayworth listed at $88 million (IB complaint). Walker & Dunlop call for offers 27–29 May 2025. Allegation that a sale was imminent as of the 30 Jun filing.
- 30 Jun–1 Jul 2025KHCA says it became manager of Vintage IB, LLC (30 Jun letter) and of Hayworth Tanglewood IB the same day. Vintage IB, LLC v. Vintage, DST, Del. Ch. C.A. 2025-0757 filed 1 Jul. Same evening, Hayworth Tanglewood IB v. Hayworth Tanglewood DST, C.A. 2025-0748 (Transaction ID 76552285): verified complaint (HTML preview) plus exhibits A–D. Hayworth complaint alleges ~$37.7 million sold of ~$77.9 million, ~$20.1 million to the bridge lender, IB still ≥60%, and diversions including ≥$5 million to Apex and ≥$2 million to Sunstone. Allegations.
- Aug 2025Johan maps KHCA DSTs: Hayworth, Vintage, Walk, One on 4th, Apex. Board consensus: sue the BD. Real Deal (18 Aug): Buckingham and Tailor Lofts delinquent.
- 15 Jan 2026 · Delaware
- Mar–10 Apr 2026Forum posts describe McQuade engagement letters as BD-funded; the letters themselves were not reviewed. NY order 10 Apr 2026 (Justice Bannon, 2026 NY Slip Op 31536(U)): contract and alter-ego live; fraud/conversion dismissed as duplicative. Real Deal (11 Mar): Midland/Wells foreclosure on The Buckingham.
- 13 Apr 2026 · Crew recordingBlake: “agreement in principle” with Crayhill/KHCA; independent trustee; third-party AM replacing Crew; PM replacing Book & Ladder.
- 3–9 Aug 2026 · forumMadelyn: Capital Square webinars for Walk, Vintage, One on 4th, Hayworth. On the thread she recommended rejecting unless the new sponsor is not contractually bound to KHCA.