News Summary
Millennia Companies has defaulted on a $52 million mortgage for The Statler apartment building in Cleveland, leading to a foreclosure lawsuit. The company owes $60.7 million to Union Labor Life Insurance Company, which is seeking judicial action to sell the building. This development raises concerns about Millennia’s financial stability and ongoing legal issues, including misappropriation allegations against owner Frank Sinito. The historic building, transformed into apartments, is now in jeopardy, marking another challenge for the company amidst mounting troubles.
CLEVELAND – Millennia Companies, a major player in downtown real estate, has defaulted on a $52 million mortgage for The Statler apartment building, which is now facing foreclosure as detailed in a lawsuit filed in federal court in Cleveland. The company owes a total of $60.7 million to Union Labor Life Insurance Company, including additional fees and interest, prompting the insurer to request a federal judge to order foreclosure and the subsequent sale of the building to settle the debts.
The historic Statler building, established in 1912, initially operated as an upscale hotel and has been transformed into a residential facility featuring 295 apartments, a yoga studio, a community center, and a coffee shop on its ground floor. Millennia purchased The Statler in 2018 for $40 million, intending to convert the space into high-end living units. A private equity firm involved in the acquisition estimated the total cost of purchasing and renovating the building at approximately $53 million.
To support these improvement projects, the Cleveland City Council approved tax increment financing in 2018. However, Millennia, through its subsidiary Statler Cleveland Holding, LLC, secured the $52 million mortgage in 2022, which has now defaulted. The legal action marks another chapter in the ongoing struggles faced by Millennia through financial discrepancies and controversies surrounding the company and its owner, Frank Sinito.
Sinito, who stepped down as CEO in June 2024 but remains the owner, has been at the center of the issues regarding Millennia’s operations. Earlier this year, federal agents raided Sinito’s home due to allegations from the U.S. Department of Housing and Urban Development (HUD), which accused the firm of misappropriating or failing to properly account for $4.7 million. In light of these violations, HUD imposed a five-year ban on Millennia from securing federal contracts.
In May, a HUD administrative judge confirmed unauthorized transfers of funds amounting to $3.1 million, although penalties remain undecided as Millennia contended that it could not pay the $7 million in fines that HUD sought. Additionally, Millennia is confronting various lawsuits concerning the living conditions within its low-income housing properties, contributing to the negative spotlight on the company.
The foreclosure lawsuit involving The Statler building is the second recent foreclosure case for an apartment building in downtown Cleveland. This follows the foreclosure of Reserve Square in July, which occurred due to a defaulted $78 million loan.
Millennia Companies maintains ownership of several other notable properties in downtown Cleveland, including the Key Tower skyscraper, and holds a significant presence in the low-income housing market across the nation. As the foreclosure process moves forward, the fate of The Statler and its impact on the surrounding community remains uncertain.
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Additional Resources
- Cleveland.com: Statler Building Foreclosure
- Wikipedia: Foreclosure
- News 5 Cleveland: Federal Agents Search Home
- Google Search: Frank Sinito
- WKYC: Federal Investigators Raid House
- Google Scholar: Millennia Companies
- Fox 13 Memphis: Agents Raid Home of Millennia CEO
- Encyclopedia Britannica: Real Estate Foreclosure
- Spectrum News 1: Federal Agents in Ohio
- Google News: Millennia Companies
Author: STAFF HERE CLEVELAND WRITER
CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton
