GREENSBORO, N.C. -- A lending group that partially funds the owner of the Cascades Grandview Apartments on West Market Street in Greensboro is suing the building's owner and has officially taken control of the building.
The city of Greensboro said the lawsuit put the building in receivership, meaning the lenders have cut out the owner in an attempt to recoup as much money as they can, believing the owner will be unable to pay back the loans his or herself.
Grayson Russell represents Spartan Heights Apartments, LLC, which is owned by a private equity firm in New York. Russell said he is currently on a fact-finding mission for his clients, but the plan is to eventually fix the things that have gone wrong with the building.
The air conditioning failed in late June, forcing residents to deal with scorching July heat without it. The city of Greensboro condemned the building on August 16 after Duke Energy cut the power, the result of delinquent bills. Now the power is back on, but just one of the two elevators is function.
The building is also zoned as a dormitory for use by college students and most the residents are not students. Housing for nonstudents requires single room occupancy zoning, which requires more common space per every occupied room and more parking than dormitory use.
The city's zoning administration had planned to begin fining the owner of the building for the zoning violation next week. Considering the change in leadership, zoning administrator Mike Kirkman said the city will hold off on fines.
Kirkman said having someone to answer phone calls and hold accountable for the Cascades Grandview Apartments is a welcome change for Greensboro. Up until Friday's lawsuit and Monday's ownership change, the city struggled to get in touch with whomever was responsible for the upkeep of the building.