Richmond, Va. – A finance giant has requested to be excused from a hefty $40 million lawsuit centered around the development of Richmond’s Diamond District, a sprawling urban redevelopment project once co-managed by the firm. Loop Capital, a Chicago-based investment bank, along with Thalhimer Realty Partners, finds itself entangled in legal disputes after supposedly departing from a former partnership with Republic Properties, the Washington D.C.-based company that initially spearheaded the development.
The discord traces back to a reorganization of the project’s leadership. After a fallout with Republic Properties in May 2023, Loop Capital and Thalhimer Realty Partners formed Diamond District Partners (DDP) and renegotiated the development terms directly with the city, contrary to the initial partnership with Republic. Republic alleges that this reformation breached their prior agreement, thus prompting the lawsuit filed against Loop Capital and Thalhimer in July.
In a legal response submitted last week, Loop Capital emphasized its disengagement from the project, arguing for its removal from the lawsuit due to its non-involvement in the newly formed DDP, nor in the subsequent dealings with the city. This stance was bolstered by declarations that Loop Capital advisor Gregory Peck had requested Thalhimer to detach Loop Capital from any commitments related to the project as early as April.
Backing Loop’s position, Thalhimer filed their memorandum supporting dismissal of the lawsuit, casting Republic’s motions as spurred by regret for withdrawing from the initial city deal—a move they dubbed “quitter’s remorse.”
Republic, in contrast, holds that the defendants, including Loop Capital and Thalhimer, unilaterally pursued the project without properly disbanding the earlier partnership under RVA Diamond Partners LLC. They argue this led to a breach of what they contend was a standing partnership agreement.
The city’s support for the project has continued unabated, with significant developments including the approval of a city bond sale to fund the project’s anchor baseball stadium. Despite Loop’s earlier participation in facilitating these financial aspects, they were notably absent from mentions in critical meetings by mid-May, indicating their fading involvement.
However, the lawsuit continues to unravel as Republic seeks to reclaim what it estimates as $40 million in lost project value, naming not only Loop and Thalhimer but encompassing figures such as Thalhimer principal Jason Guillot and Loop CEO James Reynolds, among others.
Representing the parties are high-profile legal teams: Reed Smith for Loop and its associates, Williams Mullen for Thalhimer and DDP, and Offit Kurman for Republic. An initial court hearing is anticipated in December, which may give the first judicial insights into this complex dispute.
At stake is the outcome of the 67-acre Diamond District development that envisions transforming Richmond’s landscape to include new living spaces, businesses, and a municipal ballpark. The project now relies on Thalhimer’s lone guidance over the first 30-acre phase, juxtaposed with separate management of the ballpark by the Richmond Flying Squirrels, financed through the city’s initiatives.
As this legal battle unfolds, the implications will resonate not only through the local community eager for redevelopment but also among the myriad financial, legal, and urban planning spheres watching closely.
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