The Dallas Morning News Real Estate Column

Mar. 28, 2003 - If David Deniger has learned anything about the real estate business, it's that it's hard to do a deal with a maharishi. 

Almost six years ago, Mr. Deniger's Olympus Real Estate signed a contract with the Maharishi School of Vedic Science to buy a Dallas hotel. And although most real estate transactions close in quick order, this was no ordinary purchase. 

The seller was the organization founded by 1960s spiritual icon Maharishi Mahesh Yogi. Maharishi Yogi founded the international Transcendental Meditation movement. He is the bearded gent made widely popular in the flower children days by his association with the Beatles. 

"Oh, that maharishi!" Just how many do you know? 

What most folks don't know about the maharishi is that he's a big real estate investor -- nothing on the order of Trammell Crow, but a player nonetheless. The TM people own buildings and land all over the world. 

In 1993, the school paid about $2 million for the tired old Hilton Inn (renamed Hiltop Inn) at Mockingbird and North Central Expressway. 

It bought the building out of foreclosure and planned to convert it to a school and dormitory space for people who wanted to immerse themselves in TM. 

Four years later, Mr. Deniger's firm bought the almost derelict building for between $3 million and $4 million. 

At least that's what they thought. The seller's representatives never showed up at the closing table. 

"I don't think that's ever happened to me -- it was a big surprise," Mr. Deniger said. 

The deal has been tied up in court since then -- unmoved by any amount of positive thinking. 

Olympus is suing to make the maharishi complete the sale. Maharishi School of Vedic Science claims its contract had expired and wasn't valid. 

"We're still actively attempting to enforce our contractual rights," said Mr. Deniger, who intends to keep fighting for the purchase. If nothing else, it's become a matter of principle for him. 

You can imagine Mr. Deniger's surprise when, a few weeks ago, the maharishi's organization began running big ads to sell the now-renamed Hotel Santa Fe for $20 million -- about five times what Olympus had planned to pay. 

The property is on the tax rolls for about $5.2 million, and that's just for the 5.4 acres of land. The 396-room hotel is valued by the Dallas Central Appraisal District at just $1,000. 

The Maharishi World Peace Fund, which placed the advertisements, said it plans to use the money from the hotel -- along with an additional $108 million it expects to get from some vacant land in the Colony (about twice what it paid) -- to fund its world peace movement. 

The organization wants to build "108 world peace palaces" with money from the sales. 

The Maharishi World Peace Fund did not respond to e-mail requests for information about how it plans to sell the hotel if it is still tied up in court challenges. 

Mr. Deniger is understandably skeptical about all of this. 

"We're dealing with people who don't have a commercial perspective," he said. "That hotel is certainly not worth $20 million -- you can quote me on that." 

Somebody had better tell that to the guru. 

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