Rapid City SD – A settlement agreement filed Sept. 11 in the Tzadik Sioux Falls Portfolio III bankruptcy case sets hard deadlines for the sale of three properties tied to Rapid City developer Adam Hendry — a South Dakota ranch, a Florida farm, and LaCrosse Estates Apartments, the 265-unit complex at 761 E. Anamosa St. that has operated quietly under Tzadik ownership since 2021.
The agreement (Doc. 840) resolves an objection creditor Alejandro Arguelles and his company, Gatoralex Consulting, LLC, filed last month against a proposed refinancing transaction (Doc. 831).
It was filed “held in escrow subject to final exhibit documentation,” with signature pages for Hendry, Arguelles, Gatoralex, and the Tzadik entities still blank as of filing.
The Terms of the Agreement
Under the agreement, SD Purchaser LLC — a newly formed Delaware entity acquiring the reorganized debtors’ membership units — will pay Arguelles and Gatoralex $2 million at closing and an additional $1 million within 30 days (Doc. 840, §§2.1-2.2).
In exchange, the Arguelles creditors will release their lien against real property owned by Tzadik Sioux Falls Portfolio III, LLC, partially satisfying a $10,645,377.97 state court judgment against Hendry entered in October 2024.
The $1 million deferred payment is secured by a promissory note and a first-priority mortgage against Star Village, the Rapid City mobile home park at 27 Signal Drive, held by a new entity called Star Village Owner LLC (Doc. 840, §3.1).
The note and mortgage are held in escrow and destroyed if the deferred payment is made on time; if not, they become enforceable and can be recorded against Star Village (Doc. 840, §3.6).
For 45 days after closing, Star Village cannot be mortgaged, sold, or otherwise encumbered without Arguelles’s written consent (Doc. 840, §5.1).
Both Star Village Owner LLC and SD Purchaser LLC are signed into the agreement by Derrick Barker Jr., identified as Managing Member of both entities.
Three Properties, Three Deadlines
Separately from the Star Village mortgage, the agreement accelerates sale deadlines already set out in Hendry’s personal Chapter 11 plan (the “Hendry Plan,” Dkt. 444 in Case No. 25-14711, confirmed at Dkt. 519) for three properties (Doc. 840, §7.3):
- Raza Ranch, LLC — a sale contract for the land surrounding the Raza Ranch parcel is due by June 1, 2027; a separate contract for the parcel where the Raza Ranch building sits is due by Dec. 1, 2027. Each closing must follow within 30 days of its contract deadline.
- L’Chaim Farm, LLC — a sale contract is due by Sept. 1, 2027, closing within 30 days. L’Chaim Farm operates a 6.5-acre kosher urban farm in Dania Beach, Florida, offering horseback riding, a petting zoo, and community events; Hendry has publicly described it as the only all-kosher farm in Florida.
- Tzadik LaCrosse Apartments, LLC — a sale contract for LaCrosse Estates is due by Feb. 1, 2028, closing within 30 days.
If any of these deadlines are missed, the agreement reverts to the auction procedures already built into the Hendry Plan (Doc. 840, §7.3).
Hendry is separately barred from authorizing any mortgage or lien against any of the three properties until Arguelles is paid in full, and from allowing any of them to file for bankruptcy protection for two years after the agreement takes effect (Doc. 840, §7.5).
Notably, Hendry himself has no authority to decide how or to whom these properties are sold.
That power belongs solely to Daniel Stermer, the court-appointed Plan Administrator for Hendry’s personal bankruptcy case, who retains sole authority to market, list, negotiate, and close the sales (Doc. 840, §7.4)
The LLC Trail
South Dakota Secretary of State filings confirm a pattern across several Hendry-linked entities.
Cheyenne River Ranch, LLC, Tzadik Rapid City Portfolio I, LLC, and L’Chaim Meats, LLC each reported owning agricultural land as recently as 2023, then reported not owning agricultural land beginning with reports filed in 2024 — the same window in which Cheyenne River Ranch Meats, LLC (organized 2022) was dissolved, effective Dec. 18, 2024, and Tzadik Cattle, LLC went delinquent with the Secretary of State’s office.
A commercial listing separately marketed by Beach City Realty — “The ‘Lchaim Farms’ – Woodland Lane Assemblage” — advertises roughly 10 contiguous acres in Dania Beach for redevelopment, citing a nearby agricultural-to-mixed-use rezoning as precedent.
Property records for a neighboring parcel at the same address list Hendry, James Halperin, Christina [surname unconfirmed], and Christine Alletto — the same CPA who signed recent South Dakota registered-agent filings for Cheyenne River Ranch, LLC and Tzadik South Dakota Portfolio II, LLC — along with a trust identified as ALEF, as owners of record.
What’s Still Ahead
The agreement required the Tzadik bankruptcy court’s approval by Sept. 10, and requires approval from the court overseeing Hendry’s personal bankruptcy case no later than Sept. 15 (Doc. 840, §8.1).
Separately, a hearing on broker Brad Stearns’s objection over commission terms and the underlying refinancing motion — previously continued from Sept. 8 — is also set for Sept. 15 (Doc. 837).
If the transaction does not close within 20 days of the agreement’s effective date, it terminates automatically and Arguelles’s original lien and objection rights are restored in full (Doc. 840, §12.1).
Sourcing
This piece is based on court filings in Case No. 25-13865-MAM (U.S. Bankruptcy Court, Southern District of Florida), including Doc. 831, Doc. 837, and Doc. 840; South Dakota Secretary of State business entity filings; and a commercial real estate listing independently located and reviewed by the Sentinel.
Derrick Barker Jr.’s relationship, if any, to Nectar, Inc. — which raised objections to related Star Village terms during the Sept. 8 hearing — has not been independently confirmed as of publication.
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