Milbank Buildings Sold to Scarsdale Landlord

Milbank's 10 Bronx buildings have over 4,000 housing violations among them. (File photo by J. Evelly)

 

Another chapter in the ongoing Milbank Bronx housing saga: the 10 crumbling apartment buildings were finally sold last week to a Scarsdale-based landlord after months of negotiations, according to Crain's New York.

Steve Finkelstein bought the mortgage and the deeds to the properties in a $28 million deal, the article reports, promising to start serious and immediate repairs at the violation-riddled buildings, and agreeing to report to HPD within 30 days about what work he's done.

Finkelstein, who owns 31 other buildings in the Bronx, told Crain's he expects to face an "amazing amount of work," but that he's sending eight-man crews into every building to start on repairs.

Tenants Hold Prayer Vigil; Demand Change

Residents at a portfolio of foreclosed and dilapidated buildings hold candles at a prayer vigil last night. (Photo by Jeanmarie Evelly)

Tenants from ten crumbling Bronx buildings gathered in the courtyard of 2770 Kingsbridge Terrace last night for a an emotional candlelit prayer vigil, fed up with conditions in apartments that many describe as unlivable. Their homes have been in foreclosure proceedings for over a year after private equity firm Milbank Real Estate defaulted on its $35 million mortgage.

"We shouldn't have to live like this," said Sergio Cuevas, whose apartment at 2785 Sedgwick Ave. is plagued by leaks, mold and rotting floors. "I don't invite anyone over to my home."

His neighbor, Chuck Davie, says he won't let his four-year-old son use their bathroom because the mold is so severe. He showers every morning at Bally's Gym to avoid using his leaky bathtub at home.

The vigil was held just hours after a Bronx Supreme Court judge ordered LNR Property LLC, the servicer to the loan that oversees the portfolio of buildings, to pay $2.5 million within the next 30 days on repairs. Housing advocates hailed the decision as a milestone step.

"As far as I know, this is the first decision of this kind," said Jonathan Levy of Legal Services-NYC, which filed a motion on behalf of the tenants to hold LNR or Wells Fargo, the bank that serves as the trustee on the mortgage, financially responsible for fixing the buildings.

Judge Orders Servicer to Pay $2.5 Million to Fix Milbank Buildings

A big update in the ongoing Milbank saga--the portfolio of ten apartment buildings that have fallen into disrepair since Milbank Real Estate went into foreclosure proceedings on them.

Tenants have been trying to get LNR, the servicer that oversees Milbank's $35 million mortgage, to help finance some of the 3,000 housing violations that need repairing, and Legal Services-NYC Bronx had filed a legal motion on behalf of the residents this year to try and make that happen.

Meanwhile, LNR is supposedly looking to sell the buildings to a mystery buyer in a deal that was rumored to be closing today. But according to Dina Levy of the Urban Homesteading Assistance Board, LNR came to Bronx Supreme Court and announced that they weren't ready to close on the transaction. The judge then ordered the Florida-based company to fork up $2.5 million in the next 30 days to start fixing some of the apartments' many problems.

"As far as I know, this is the first decision of this kind," said Jonathan Levy, of Legal Services-NYC.

The order, however, could be rendered moot if LNR's deal to sell the properties goes through in the next month. We'll have more details on this, and from tonight's candlelight vigil, later.

City Council Releases Report on Milbank's Woes

Council Speaker Christine Quinn at City Hall last week, announcing a new strategy to deal with distressed buildings like Milbank's (Photo by Jeanmarie Evelly)

Members of City Council and a number of housing advocacy groups unveiled a plan last Thursday to deal with the city's growing number of distressed, overleveraged properties--including 10 Bronx apartment buildings owned by Milbank Real Estate, which have been in worsening states of disrepair since the company went into foreclosure on the properties last year.

The program will elicit the help of pro-bono engineers and architects to assess the damage in properties like Milbank's so that tenants can have a detailed list of their building's problems, and better hold landlords accountable for making repairs.

"We believe it's important for residents to be armed, so they can advocate for their own solutions," said Andrew Reicher, executive director of the Urban Homestead Housing Board, which has been working with Milbank tenants for the past several months.

The first property survey, done by Baer Architect Group and the Northwest Bronx Community and Clergy Coalition, is a nightmarish list of 3,300 housing violations in the 10 Milbank's properties, which are scattered throughout the northwest Bronx. The study confirms what tenants have long been saying.

Complaints include leaking walls and ceilings, broken elevators, rotting floors and months without a working toilet in some apartments. It calculated that the cost of repairs for all the buildings could add up to over $24 million.

"It's reprehensible," said Charlene Barton, who lives in one of the properties at 1576 Taylor Avenue, and says she's been fighting a mold infestation for almost a year. "Why manage a building if you're not going to take care of it?"