The troubled Kirby Apartments could soon have a new owner.
Residents of the 116-unit complex abandoned by investment group Vision & Beyond late last year have complained about a major sewage leak, collapsing ceilings, animal infestations, and other issues for months.
Resident Mamedy Doucoure told WVXU about the ceiling partially collapsing in his son's bedroom earlier this year.
"That day, I almost wanted to cry," he said. The ceiling went without repairs for months after large chunks of it fell.
Attorneys for court-appointed receiver Prodigy Properties filed in Hamilton County Common Pleas Court Aug. 11 for permission to put the property up for auction.
That filling indicated Prodigy had located a buyer willing to put down $150,000 in earnest money and pay at least $3.3 million for the property if other bidders don't bid more. The buyer, not identified in the documents, could also bid higher during the auction if the court allows it to happen.
Earlier this summer, Cincinnati Council approved $400,000 to fix a major sewage leak on the property. A city inspector indicated if the problem wasn't fixed, the city would be forced to issue orders to vacate the apartments, which would displace dozens of residents.
City attorney Mark Manning told Hamilton County Judge Christian Jenkins during a July 30 status conference that move is a last resort.
"Probably there are a lot of tenants who don't want to be moved from their house unless it's absolutely necessary," he said. "So we're trying to avoid that as much as humanly possible."
During that hearing, Prodigy indicated it was still trying to secure $2 million in financing to make repairs to the dozens of properties still under its receivership. Attorney Zach Prendergast did not mention a possible sale at the time.
Prodigy has gotten criticism for its handling of the Vision & Beyond receivership as conditions at multiple properties continue to be substandard. Last month, Jenkins agreed to let another receiver take over at some properties as a legal battle continues over ownership of them. That receiver was chosen by investors with stakes in the properties.
For its part, Prodigy says it's been difficult to secure the necessary financing to make needed repairs at the properties given the ongoing legal battle around them.
Meanwhile, residents continue to struggle with conditions at a number of properties. Dale Rico is another resident at Kirby. He says he's been struggling with problems since Vision & Beyond owned the buildings.
"My bedroom's leaking, my ceiling fell in," he told WVXU earlier this summer. "I've been arguing with people since September of last year."
Kirby Apartments is one of roughly 70 properties Vision & Beyond abruptly left without management. Its co-founders Stas Grinberg and Peter Gizunterman are accused of duping investors by improperly mortgaging properties the investors bought into and then leaving the country with the money. Lenders then sought to foreclose on the properties, leaving it unclear who has claim on them — the lenders holding allegedly fraudulent mortgages or investors who paid Vision & Beyond for ownership stakes.
Federal authorities arrested Grinberg earlier this year on fraud charges. He awaits indictment in the Butler County Jail.
Judge Jenkins will need to approve Prodigy's request for permission to put the property up for sale. Jenkins and attorneys for investors, lenders and receivers will meet again about the case Aug. 13.
Read more: