November 15, 2019
In August 2019, RED Development placed Union Dallas, a $350 million, mixed-use high-rise in Dallas’ Uptown submarket, up for sale. Months later, former RED Development managing director Dan Lowe filed a civil lawsuit against RED Development managing partners Michael Ebert and Scott Rehorn. Lowe is claiming that Ebert and Rehorn violated fiduciary duties through “massive self-dealing and fraudulent schemes” to enrich themselves, at the expense of investors.
The suit comes with a temporary restraining order against the property’s sale. Furthermore, the lawsuit claims the values of RED properties outside the Dallas area, in which Lowe has an interest, have been diluted. A hearing on the temporary restraining order is scheduled for December.
The almost fully-leased Union, which contains an office tower, apartments and a shopping center, is at Cedar Springs Road and Field Street.
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