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Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Your Trusted Katy / Fulshear & Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Looking to invest, buy, sell or lease? We can help.

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Looking to invest, buy, sell or lease? We can help.

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eXp Commercial - Viking Enterprise Team's real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the Katy- Houston area. Our knowledge, experience, and reputation sets us apart from many firms.

A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

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5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

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💰 $10M Real Estate Scheme: Colliers Under Fire! 💰

🌟 Colliers Faces Fraud Allegations: Impact on CRE Investors 🌟

Commercial Real Estate

January 24, 2025•4 min read

🌟 Colliers Faces Fraud Allegations: Impact on CRE Investors 🌟

💰 $10M Real Estate Scheme: Colliers Under Fire! 💰

In the world of commercial real estate, trust and transparency are the cornerstones of any successful investment. But what happens when those cornerstones crumble? A recent lawsuit against Colliers and associated parties has rocked the industry, revealing a tangled web of alleged deception that left 17 investors, many of them retirees, facing significant financial losses.

The Investment That Wasn’t 🌟

The story centers around a $10 million medical office property in South Jordan, Utah. Marketed as a lucrative investment opportunity, the property was sold as having a long-term anchor tenant and promised monthly passive income ranging from $1,430 to $8,170, depending on ownership share. Investors were told this was a safe, hands-off investment, backed by the reputable Colliers name and branding.

But according to the lawsuit, the reality was starkly different. The property’s true valuation was $2.6 million, a far cry from the advertised $10 million. The promised anchor tenant, Neuragenex, never moved in and later filed for bankruptcy—leaving the investors with little to no income and mounting frustrations.

How It Unraveled 🕵️‍♂️

The lawsuit, filed in the U.S. District Court for the District of Utah, accuses Colliers, five of its current or former brokers, and other entities of inflating property values and misleading investors. Using funds raised from new investors to cover payouts to existing ones, the defendants allegedly concealed the property’s financial struggles.

This isn’t the first time these players have come under fire. The same group is named in a separate lawsuit in Texas, involving another alleged property scheme with similar tactics.

The Personal Toll 💔

Among the affected investors is Cheryl Tomac, a 75-year-old former family law attorney forced into retirement after a stroke. Tomac had invested nearly $326,000 from the sale of her legal practice’s property, expecting the passive income to cover living expenses and support her husband, who has dementia. Initially, she received $1,700 per month as promised. But after Neuragenex filed for bankruptcy, her payouts dwindled to just $200—devastating her carefully planned retirement.

Tomac’s story isn’t unique. Court records show that most investors involved in this deal are over 65, highlighting the vulnerability of retirees in high-stakes investments.

The Accused 🎭

Key players in the alleged scheme include Utah-based Millcreek Commercial Properties, which has since ceased operations, and its founder, Kevin Long. The suit also names his son, Jerald Adam Long, a former chief operating officer at Colliers, along with other high-ranking Colliers officials like Utah CEO Lew Cramer and co-owner Brandon Fugal.

Interestingly, the lawsuit alleges that Millcreek’s operations have continued under a new company, KGL Advisors, with Long still at the helm—a claim that raises questions about accountability in the industry.

Legal Fallout ⚖️

The Utah investors are seeking damages for emotional pain and suffering, as well as the return of all funds. The suit lists 18 civil infractions, including elder abuse and the sale of unregistered securities. Both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are reportedly investigating the case, signaling potential criminal charges ahead.

Settlement talks are underway, but no defendants have formally responded to the allegations. Meanwhile, the legal and financial impacts of this case could set new precedents in how the industry handles fractionalized ownership and investor protections.

What This Means for CRE Investors 📈

This case serves as a stark reminder of the importance of due diligence in commercial real estate. While passive income investments can be attractive, investors must:

Verify Property Valuations: Cross-check appraisals with independent sources.
Understand Tenancy Agreements: Confirm tenant commitments and financial health.
Research the Players: Look into the track records of brokers, managers, and developers.
Consult Professionals: Work with trusted financial advisors and attorneys to vet deals.

Moving Forward 🛠️

The Colliers lawsuit is a cautionary tale that underscores the need for increased transparency and regulatory oversight in CRE. As the legal battle unfolds, it’s clear that the stakes go beyond financial losses—they affect the trust and integrity that form the foundation of the real estate industry.

For now, all eyes are on Colliers and its co-defendants as the courts determine accountability. In the meantime, let this serve as a lesson to approach every deal, no matter how reputable the source, with a healthy dose of skepticism and a commitment to thorough investigation.

💬 What’s your take on this case? Have you experienced anything similar in your real estate ventures?

I’m an experienced Commercial Real Estate Broker, please feel free to reach me at 281-222-0433.

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Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

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eXp Commercial - Viking Enterprise team real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the greater Katy & Houston MSA area. Our knowledge, experience, and reputation sets us apart from many firms.