Owner of troubled Latitude Five25 apartment towers on Near East Side agrees to sell
The owner of the troubled Latitude Five25 apartments on the Near East Side has agreed to sell the property, according to a court order a judge approved on Tuesday.
According to the agreement between the owner, Paxe Latitude LP, of Lakewood, N.J., and the Columbus City Attorney's office, the owner will enter into an agreement to sell the property at 525 Sawyer Blvd. by Friday. The deal must close by Jan. 31, although the buyer could request an extension until Feb. 10.
A compliance hearing for repairs to address various health, sanitation and safety violations at the towers has been set for Feb. 13.
“City and county officials stepped up to respond to this crisis, and now we have a clear path forward to remove an ownership group that for years has failed to meet basic standards of living for tenants,” City Attorney Zach Klein said in a statement.
Klein's office said the buyer is Premium Capital Resources of Paramus, N.J., described as a privately held real estate investment and advisory firm.
The Dispatch left messages with S. Joshua Kahane and Michael Cassone, lawyers representing Paxe Latitude, seeking comment Wednesday.
According to the court order, Paxe Latitude will deposit $500,000 into a repair reserve account, with a third party, Lument Commercial Mortgage Trust, paying $150,000 out of that account to pay for work at the complex.
Paxe Latitude agreed to fully restore elevator service, heat and hot water to the complex by Jan. 29.
Paxe Latitude also agreed to reimburse the city $50,000 for overtime costs incurred responding to the property on Christmas Day and afterward. Water pipes burst at Latitude Five25 on Dec. 25, forcing residents to leave their apartments. More than 30 spent time at the Dodge Community Center in Franklinton.
Paxe Latitude agreed to pay up to $340,000 for the cost of hotel rooms, bus passes and food for residents.
Paxe Latitude is to maintain security and a fire watch at the apartment towers under the agreement approved by the judge, and no tenants will be required to pay January rent.
The agreement was reached after the city decided to evacuate the buildings last week after the water line breaks.
Franklin County commissioners on Dec. 28 unanimously authorized spending $750,000 to help Latitude Five25 residents find temporary lodging.
"The tenants have borne the significant brunt of the problems because of the dereliction of the current owners," Klein said.
Klein filed a contempt action on Dec. 27 in Franklin County Municipal Court's Environmental Division against Paxe Latitude, asking the court to appoint a receiver and order the owner to pay for all repairs and relocation costs.
At the time, city officials said 152 of the towers' 400 units were occupied.
The order said no units can be reoccupied until the owner complies with the city's emergency orders for health and safety repairs.
Graham Bowman, a lawyer with the Legal Aid Society of Columbus, which represented Latitude Five25 tenants, said his group's goal was to make sure tenants were taken care of and compensated for what they experienced.
Bowman said it is still unclear as to whether the condition at the apartments can be improved enough for tenants to move back, mentioning the extensive water damage. He said tenants can break their leases to find other places to live if they want.
"The residents are still in a very precarious situation," Bowman said. "We want to make sure this property is maintained as decent housing."
Klein said, "It may require demolition. I don’t know."
In September, the Columbus City Attorney's office filed a contempt action against Paxe Latitude for violating a May 2022 court order to fix code violations and address security concerns at the apartments.
The apartments used to be known as Sawyer Towers, once a public housing complex.
mferench@dispatch.com
@MarkFerenchik
This article originally appeared on The Columbus Dispatch: Owner of troubled Near East Side apartment complex agrees to sell
