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Kanter also arranged for subsidiaries of IRA (Zeus) and of
THC (Zion) to invest in some of Frey’s projects as limited
partners.
In early 1980, Ballard approved the sale by a pension fund
managed by Prudential of a large apartment complex in Florida
known as Village of Kings Creek to a limited partnership
organized by Frey. Ballard visited the project during the
conversion period. Frey was very successful in converting the
property to condominiums. Shortly thereafter, in the fall of
1981, Prudential entered into a several joint venture condominium
conversion projects with Frey (under which Frey managed the
conversion of Prudential properties into condominiums).
At this time, Kanter and Frey committed their earlier oral
fee-sharing agreement to writing. The Frey/THC participation
agreement provided that for condominium conversion projects
involving Prudential properties, and any future condominium
conversion projects not involving Prudential properties, THC and
Frey would participate in capital contributions and profits and
losses as 33-percent and 67-percent partners, respectively. In
addition, after October 1, 1981, THC would receive 5 percent of
any development fees derived from any condominium conversion
projects not involving Prudential properties. Frey agreed to
share development fees with THC as a way to compensate Kanter for
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