The ownership of Williamsburg of Cincinnati, a large residential property, transitioned from a private investment group to a court-controlled structure following lawsuits over substandard living conditions. This change places the property in a unique legal position within the Cincinnati real estate landscape. The current situation reflects a judicial intervention designed to protect tenants and stabilize a major local housing asset, providing a temporary answer to the question of its control.
Defining the Entity Known as Williamsburg of Cincinnati
Williamsburg of Cincinnati is a large apartment and townhome complex located in the Hartwell neighborhood at 200 West Galbraith Road. The property is one of the largest single housing assets in the area, offering a substantial portion of the community’s rental stock. It comprises 976 individual units, including studio, one, two, and three-bedroom apartments and townhomes. The complex covers approximately 138 acres. Although originally constructed in 1967, the property has recently become known for its extensive deferred maintenance and poor living conditions.
The Current Ownership Structure
The legal owner of the Williamsburg of Cincinnati complex is currently a court-appointed receiver, a temporary controlling party assigned by the judiciary. This entity was formally put in place by Hamilton County Common Pleas Court Judge Tom Heekin in June 2023. The receivership stripped the previous private owners of all management and control over the property’s operations and finances. This action resulted from a consolidated legal effort, including a public nuisance lawsuit filed by the City of Cincinnati and a foreclosure action initiated by the mortgage holder, Fannie Mae. The receiver acts as an officer of the court, tasked with operating the property, collecting rents, overseeing necessary repairs, and preparing the asset for a future sale.
Corporate History and Previous Owners
Before the court-ordered receivership, the complex was owned by BRC Williamsburg Holdings LLC, a Delaware limited liability company that acquired the property around 2018. The ownership structure involved two investment firms, Dasmen Residential LLC and Rhodium Capital Advisors LLC, identified in court documents as the parent company and the entity holding itself out as the owner. The City of Cincinnati’s lawsuit alleged the property was already in disrepair at the time of the 2018 acquisition. This ownership group was later implicated in a federal mortgage fraud conspiracy concerning the property’s financing. The former manager of BRC Williamsburg Holdings LLC, Boruch “Barry” Drillman, pleaded guilty in December 2023 to his role in the multi-million dollar fraud scheme.
The Scope of Business and Key Holdings
The scope of business for the Williamsburg of Cincinnati complex is the provision of residential rental housing to a large segment of the city’s population. The property represents a large-scale housing investment and a substantial piece of the Hamilton County real estate tax base. The complex includes significant green space and community amenities like a fitness center and swimming pools, although many were in a state of disrepair. The asset’s size and unit count mean that its condition and management directly impact the availability and quality of affordable housing in the Hartwell neighborhood and surrounding areas.
Operational Impact and Key Leadership
Operational leadership now rests with the court-appointed receiver and the professional management team they have installed. The receiver manages all day-to-day activities, including maintenance, rent collection, and vendor contracts. This intervention was necessary because the previous ownership operated the complex with only ten full-time maintenance staff and five office staff for nearly 1,000 units, leading to a profound lack of upkeep. The current leadership’s focus is on stabilizing the property by addressing hundreds of outstanding code violations and health concerns, which is a significant undertaking in the local construction and service economy.
Financial Structure and Future Outlook
The complex’s financial history is marked by leveraged debt and subsequent distress. In 2019, the previous owners obtained a substantial $74.25 million loan, which was secured by the property and backed by Fannie Mae. This financing was fraudulently obtained, as borrowers presented a false, inflated purchase price to lenders. The financial condition deteriorated, leading to the loan becoming more than 90 days delinquent, and the property’s appraised value plummeted from $99 million at the time of the loan origination to a reappraised value of $34 million. The future outlook centers on the receiver’s mission to stabilize operations and maximize the property’s value before an eventual sale. Once the complex is restored to a habitable state, it will likely be sold to a new, long-term owner to satisfy the outstanding mortgage debt and resolve the legal actions.