Investment Research Associates - Page 560




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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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