Possible foreclosure of the KeyBank tower in downtown Columbus due to a new lawsuit

As several tenants vacate a downtown Columbus skyscraper due to its poor conditions, the building’s owner now faces foreclosure.

Recently, the company AFF IV 88 E Broad filed a lawsuit, identifying itself as the lender that invested $11.8 million in acquiring the 88 E. Broad St. tower. The company is demanding $9,320,807 from the building’s owner and borrower, Baruch Broad Street, claiming that they “failed to meet their obligations under the loan terms by not making timely payments.”

The loan agreement between AFF IV and Baruch was made on January 21, 2022, requiring full repayment exactly two years later. The lender stated in court that Baruch did not meet this deadline and discovered on April 8 that the building’s primary tenant, KeyBank, threatened to stop paying rent unless Baruch settled the utility bills.

Since Baruch Broad Street is a shell company, the lender sent a summons via certified mail to the CEO of Zamir Equities, Asher Roshanzamir, who is listed as Baruch’s agent with the Ohio Secretary of State. No business records for AFF IV 88 E Broad were found at the Ohio Secretary of State’s office or in the Delaware County Register. However, Michelle Fowler, managing director of The Ardent Companies, stated in court that her company owns and controls AFF IV.

On the same day the lawsuit was filed, Ardent also submitted a motion to place the building in receivership, which would remove Baruch’s control and assign it to a third party. Such a decision allows the judge to approve the action without all parties being present. Ardent’s attorney, Jonathan Hawkins, argued that this was critical, citing utility and safety concerns raised by tenants leaving the building, such as OH Pizza and Brew and the Ohio Auditor’s Office.

As of Friday morning, the judge had not ruled on the motion. If approved, Prodigy Properties will manage the 88 E. Broad St. tower as the receiver.

AFF and Ardent, by extension, are the latest entities seeking funds from Baruch and Zamir Equities. Additionally, Harvard Maintenance sued Baruch for $170,000, citing unpaid bathroom supplies and cleaning services at the KeyBank tower. Harvard won this lawsuit as Baruch did not appear in court.

Speer Mechanical also sued Baruch on April 19, citing unpaid work at the tower since August 2022. The contractor placed a $487,000 lien on the skyscraper and sought foreclosure on the lien and accrued interest prior to any court decision. AFF and Ardent acknowledged the other lawsuits, saying they “may claim an interest in the property” in their foreclosure case.

While acknowledging the other companies, AFF and Ardent argued in court that, as the mortgage lender, they should receive “first priority” in any potential foreclosure payment.

As of Friday, Baruch and the other defendants had no legal representation appointed for the foreclosure proceedings.

Available foreclosures: Columbus – 5.

By Elias DaSilva | September 18, 2024.