A Texas-based real estate fund has filed suit in federal court against the former developer of a Williamson County mixed-use project.
Stratford Land Fund is seeking damages related to a loan it made to Terry Rasmussen and SV Properties for the purchase of the Stream Valley development at the intersection of Goose Creek Bypass and Lewisburg Pike.
Stratford alleges that it loaned Rasmussen $6.5 million in 2011 with the understanding the purchase price for the project was $12 million. In addition, Stratford says it was assured by Rasmussen and his attorney, Donald Barrett, that existing mortgages on the project, held by Fifth Third Bank, would be suborned and then assigned to Stratford as collateral.
As it turns out, Stratford discovered when attempting to foreclose on the note after Rasmussen failed to make his first payment that Fifth Third's notes still had priority. Stratford also learned the purchase price for Stream Valley was far less than Rasmussen intimated. He bought the project for $4.5 million after allegedly telling Stratford he'd be making a $5 million equity investment.
Attempts to reach Rasmussen for this story were not successful. Stratford execs are making numerous breach claims, plus fraud and negligent misrepresentation. They are seeking undisclosed amounts of punitive and actual damages.
Stream Valley, meanwhile, was bought by Tower Investments earlier this year.