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partnerships acquired an apartment complex, renovated and
converted it into condominium units, and sold the condominium
units to individual purchasers.
Beginning with Frey's second condominium conversion project,
entities associated with Kanter received limited partnership
interests in many of Frey's condominium conversion projects. The
Kanter entities that received such partnership interests included
Zeus Ventures, Inc. (Zeus), a subsidiary of IRA, and Zion
Ventures, Inc. (Zion), a subsidiary of Holding Co. Kanter also
brought other investors into some of Frey's condominium
conversion projects for which Kanter entities received a share of
development and management fees. Projects in which Kanter
entities received fees or interests included the Lakewood
Associates project and the 535 Michigan Avenue project.
The first condominium conversion project that Frey undertook
involving Prudential was a 1,000-unit townhouse apartment complex
called Village of Kings Creek at Miami, Florida. About 1979,
Frey approached a Prudential real estate department executive
working in Prudential's Miami, Florida, regional office about
purchasing the Village of Kings Creek apartment complex. The
apartment complex was owned by a pension fund managed by
Prudential. Frey offered to purchase the apartment complex for a
cash price of about $20 million. He also advised the Prudential
executive that Connecticut Mutual Life Insurance Co. would be
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