News Summary
Millennia Companies has defaulted on a $52 million mortgage for The Statler apartment building in downtown Cleveland, leading to imminent foreclosure. The company owes a total of $60.7 million to Union Labor Life Insurance due to legal and financial troubles, with allegations of mismanagement and unsafe living conditions surfacing. Owner Frank Sinito is under federal scrutiny following a raid at his home, adding to concerns about the company’s commitment to its tenants. Cleveland officials are advocating for stronger laws to address the situation.
Cleveland – Millennia Companies has defaulted on a $52 million mortgage for The Statler apartment building located in downtown Cleveland and is now facing foreclosure as a result. The company owes a total of $60.7 million to Union Labor Life Insurance Company, factoring in additional fees and interest, according to a lawsuit filed on Thursday in federal court in Cleveland.
Millennia Companies, which is one of the largest property owners in downtown Cleveland, has come under increasing scrutiny amidst legal and financial troubles. The owner, Frank Sinito, is currently dealing with the fallout from federal agents executing a raid at his home just a day prior to the lawsuit. This raid is part of ongoing investigations that have scrutinized Millennia Companies and its financial practices.
This situation arises after the U.S. Department of Housing and Urban Development (HUD) took significant action against Sinito and his company, barring them from entering federal contracts for five years. This exclusion was due to the mismanagement of $4.9 million that went missing from 19 properties linked to HUD, either federally insured or funded.
Millennia is not a small player in the real estate market; it owns or operates over 280 apartments across 26 states, which totals more than 31,000 apartment units. In the Cleveland area alone, the company has substantial holdings including Fairfax Homes, 75 Public Square, The Garfield, Langston Commons, The Statler, Rainbow Place Apartments, Lexington Village, and Kingsbury Tower.
The company’s assets also feature significant commercial properties. In 2017, Millennia purchased Key Tower for $267.5 million and has acquired other prominent structures such as The Garfield Building and The Centennial, formerly known as the Huntington Building. Additionally, Millennia is involved in the culinary scene in Cleveland, owning upscale restaurants like Marble Room and Il Venetian.
However, despite its vast portfolio, Millennia has faced numerous criticisms regarding the living conditions of its low-income housing. Tenants have reported alarming issues, including pest infestations, mold problems, and serious safety concerns. These allegations were notably highlighted in a series of investigative articles titled “Living Hell,” published in March 2021, which investigated tenant experiences across Millennia properties and spurred federal investigations into the company’s dealings.
In a recent development, a class-action lawsuit was initiated in 2023 by residents from an Arkansas Millennia apartment complex, seeking $864 million in damages linked to a gas explosion that was attributed to the company’s negligence. Such incidents have raised questions about Millennia’s commitment to maintaining safe living conditions for its tenants.
Add to this the shadow of Frank Sinito’s family history, which includes ties to organized crime. His father, Thomas Sinito, was a prominent figure in the Cleveland mafia, known for involvement in several serious criminal activities, including loan-sharking and various conspiracies, which further complicates the perception of Millennia Companies.
With growing concern among city officials, Cleveland City Council members are advocating for more robust laws aimed at holding absentee landlords accountable for neglected properties. Millennia Companies has become a focal point in discussions about ensuring better living conditions for residents of the city, amidst its mounting financial and legal challenges.
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HERE Resources
Millennia Companies Faces Foreclosure on The Statler Building
Additional Resources
- Cleveland.com: Statler Building Foreclosure
- Wikipedia: Cleveland
- Cleveland.com: Millennia Company Investigation
- Google Search: Millennia Companies
- News 5 Cleveland: Building Neglect Issues
- Google Scholar: Frank Sinito
- Cleveland.com: 75 Public Square
- Encyclopedia Britannica: Real Estate Management
- Baltimore Sun: Apartment Fire Incident
- Google News: Millennia Real Estate
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
