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Highgrove Holdings stripped of nearly 90 Milwaukee properties
A judge placed nearly 90 Highgrove Holdings properties into receivership after the landlord missed a $2 million payment and tax deadline.
MILWAUKEE - An embattled Milwaukee landlord lost nearly a third of its real estate portfolio after a judge ordered nearly 90 properties into receivership. The reason is the landlord, Highgrove Holdings, failed to pay up.
Judge's order
What we know:
"The court is granting US Bank’s appointment of receiver, consistent with stipulation," said Milwaukee County Judge Michael Hanrahan.
Judge Michael Hanrahan
The agreement being Highgrove Holdings pay more than $2 million, and clear the unpaid property taxes to reinstate a bank loan. The deadline was in May.
Highgrove's attorney said they were lining up new investors.
What they're saying:
"The city filed a lawsuit the day before the stipulation was entered and decided to litigate this case in the media. That's what happened. And so, guess what? where did the investors go? Well, they got a little bit shaky. And so it's taking longer now than the 60 days to raise that money," said James Barton, attorney.
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Highgrove's attorney declined to comment after the hearing.
What's next:
Once a judge signs off on the order, Madison-based Kali Resolution will take over, focusing on stabilizing and managing the properties during the transition.
In a statement, Kali Resolution Partners said in part:
"First, my team will conduct a comprehensive assessment of the portfolio to better understand the condition of the properties and needs of residents. As that process moves forward, we will work diligently to preserve the properties while maintaining open lines of communication with tenants and other stakeholders. I understand that tenants have concerns and soon we will be in touch with them directly."
The other side:
For community coalition group Common Ground, the day was a victory against Highgrove and its owner, David Tomblin.
"We look forward to the next two thirds being taken from him, too. because Milwaukee is not going to tolerate slumlords," said Kevin Solomon.
Kevin Solomon
Tomblin and Highgrove is currently being sued by the city to be declared a nuisance over neglected property, unpaid taxes, and poor living conditions.
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On Monday, Tomblin said he would hold a news conference in the future to address a number of issues he said have since been corrected.
The Source: Information in this post was produced after having attended the hearing on the matter.