All Forum Posts by: Brett Henricks

At this point it's really going to depend on your property. I've only spoken to one investor that complained that Crew was running their property into the ground. I have had a lot of investors say they don't understand because their property is 90% occupied. So, in most cases your Crew property is a going concern and your damage is the missed distributions. You have your share of the asset intact. Hopefully.

Crew has many of their properties that amortize after 6 years, i.e. they have to start paying principal. If they are paying any distributions at all or none they quite possibly won't be able to cover the additional cost. They could be faced with having to sell these properties. I know of quite a few that amortize starting in 2026. At that point they will be selling a significant amount of property into whatever the market is at the time. Crew investors could benefit or suffer depending on how those property sales go.

We need more investors to come forward. Please encourage any Crew investor you know to reach out so we can share your story.

The purpose of my original post and all subsequent posts was never to hold an investment seminar or dole out investment advice. The sole purpose was to connect with other Versity/Crew Enterprises investors who had their distributions suspended or some other kind of distress. To that extent Bigger Pockets has been an excellent venue for that. Originally I knew of 3 properties with suspended distributions. I have now connect with one or more investors in 14 Versity/Crew Enterprises properties. Thank you all for sharing your experiences. Besides other distressed investors I have heard from attorneys, Broker Dealers and RIA's. All of which has been much appreciated. To that extent I am still wanting to hear from Versity/Crew Enterprises investors with suspended distributions. Here are 11 Versity/Crew Enterprises properties that I have not heard from other investors about. I'm told that all have suspended distributions or are in distress. Please reach out if you are an investor in any of these properties or any of the 14 properties already identified in this post.

345 Flats, Kent OH       9 X 9, Provo UT    900 Factory, Logan UT     Campus Walk, Chico CA     

Milano Flats, Rexburg ID        One on 4th, Stillwater OK         Rockland, Lawrence KN

Tailor Lofts, Chicago IL          The Nine, Memphis TN           The Ridge, Morgantown WV

University Park, Berkeley CA

My Crew Enterprises property Inspire on 22nd in Austin has restarted distributions this month at 1.0%. Compared to the promised 5.34% I am underwhelmed. What to do with all that money? Last month they restarted my other property Wolf Run in Reno at 1.73%. I should be happy since at least it's something for the moment.

I say for the moment because both of these properties Amortize in 2026. I have no confidence that Crew can pay the principal that they then owe.

The feedback from my BD's from Crew is that they will sell the properties at that point. We will see if they can actually pull that off or it's just another empty Crew promise. If they do pull it off, at what price do they do it? Will it be enough to make investors whole and also pay the missed distributions accruing at 2%. I spoke to one investor that Crew did sell the property. He did not get all his principal back.

Here you go for the owners of the 14 properties I have heard from Crew Enterprises/Versity investors with suspended distributions the lawsuit where the principals of Versity and now Crew are suing each other over siphoning off your distributions.

On July 27, 2023, Brian Nelson formally issued a written demand to Blake Wettengel and Tanya Muro, requesting the following information and actions:

Accounting Records: An electronic copy of all accounting books and records of Versity I, from their inception to the present, including the general ledger and all other accounting files. ​

Original Documents: The original of each document or agreement in their possession bearing Nelson’s original-ink signature, to which Versity I is a party. ​

Tax Returns: A full and complete copy of all state and federal income tax returns for Versity I and related entities. ​

Financial Statements: A full and complete copy of all annual financial statements, including but not limited to income statements and balance sheets, for the time period January 1, 2018 through December 31, 2022, and for January 1, 2023 to the present, for Versity I. ​

Organizational Documents: A copy of the operating agreement, limited liability company agreement, or other organizational agreement, and all amendments thereto, or other organizational documents if any, of Versity I. ​

Additionally, Nelson demanded that Wettengel and Muro take the following actions:

Resignation: Resign from any alleged positions they held with Versity I. ​

Return of Funds: Return all wrongfully diverted funds. ​

Bank Accounts: Resign from all bank accounts. ​

Cease Transfers: Refrain from transferring any more money to themselves. ​

Asset Disposal: Stop disposing of assets. ​

Unfortunately, Wettengel and Muro ignored these demands and did not provide the requested information or take the necessary actions. ​

Please let me know if you need any further details or have any questions regarding this matter.

He also stated : On or around August 15, 2023, Blake Wettengel and Tanya Muro suspended investor payments that they were required to make each month. ​ Instead, they began transferring funds to themselves or their entities under the guise of alleged overdue management fees. ​ These transfers were a pretext and were done to damage Brian Nelson and the investors in the properties managed by Versity I. ​ The actions were taken in retaliation for Nelson asserting his rights.

Eric, thanks for the feedback you sent in your e-mail. Looks like the following:

Proforma NOI $6M, actual NOI $3.9M. Proforma NI $3M, actual NI $400k. 87% off of the Proforma.

Proforma Operating Income $8.7M, actual $7.1M. 

NI of $400k unlikely to support resumption of distributions. Currently there are $8.44M in deferred distributions which would be paid last upon a sale of the property.

I continue to hear stories like this from Versity/Crew Enterprises investors, I am interested in yours. Please reach out.

I have seen the evidence of this Capital Call by Versity/Crew Enterprises. What laws have potentially been broken here? 

As an investor in Delaware Statutory Trusts I was under the impression that by investing in DST's you were safe from a Capital Call. Well, I just heard of a Crew Enterprises/Versity property where the Sponsor did just that. Can someone explain how they can do that?

Thank you Crew/Versity investors for continuing to get in touch with me. I have now confirmed a 14th Crew/Versity property with suspended distributions. This one is in Chicago called The Buckingham. It's a student housing property.

Thank you to all the Crew/Versity Investors who have gotten in touch with me. I did want to point out that there is another forum on Reddit that has comments just like I have been hearing from you on Bigger Pockets. Here is the link.

https://www.reddit.com/r/realestateinvesting/comments/1ff1ew6/any_feed_back_on_a_dst_sponsor_called_crew/

Encouraging all Crew/Versity investors to reach out to me, I am interested in your experiences with Crew/Versity DST's. I am learning a lot and I appreciate it. The more I can learn about the 13 Crew properties with suspended distributions or other distress the better.

Versity/Crew investors, at this point I am aware of 13 properties in the Versity/Crew portfolio that have some kind of distress going. Typically the excuses that are given are the same, 1) Property Tax Increases 2) Insurance Premium Increases 3) Adverse local market conditions. Many investors have had distributions suspended with promises to have them restarted that never seem to happen when they say they will. Other investors have had distributions restarted but at a significantly reduced rate. One of my properties (Wolf Run) was supposed to be at a 6.02% rate. I have not had any distributions since March 2024. Last week I finally got a distribution at 1.73%. Kind of sad. My other property there is no communication about. No 4th qtr report, nothing (Inspire on 22nd). Here are the 13 properties. If your an Investor in one of them please reach out, I'd like to hear your story.

Astoria- Celebration FL   Apex- Orlando FL   Hayworth Tanglewood- Houston TX

Inspire on 22nd- Austin TX   CP Cincy- Cinn. OH   Oakbrook- Baton Rouge, LA

Shadow Glen- Manor TX   The Element- Sacramento CA   The Walk- Tuscaloosa AL

Wolf Run- Reno NV   Vintage Horizon West- Winter Garden FL   AW Newport- Tempe AZ

4 & J- San Diego CA