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Owners of embattled Euclid apartment complex haven't made a $38 million loan payment since October

Posted: 5:52 PM, Jan 26, 2018
Updated: 2018-01-26 18:14:01-05

Ongoing issues with rats, overflowing trash and crumbling balconies now appear to be catching up with a massive apartment community plagued with problems.

News 5 has confirmed the $38 million loan for North Pointe Apartments in Euclid is in default.


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It’s the latest twist in our months-long investigation into ongoing issues there and the tenants caught in the middle.

The group of investors who own the 949-unit complex have not made a payment since October.

Right now, they're on the hook for millions of dollars in repairs needed to bring the distressed apartment community up to city code.

"Is there anything below an F? F-,” said Donte Williams.

It's the grade Williams gives the management company that's in charge of maintaining his home.

"I wouldn't advise anyone to move here or live here," said Williams.

The North Pointe resident, along with many others, tell News 5 apartments there are infested with bugs and ants.

"They crawl on you. I mean I have bites on me," said Williams.

Just this week, the Cuyahoga County Board of Health re-inspected the property to see if the rat infestation is under control. That inspection showed many of the same issues remain, with unsecured trash and rat burrows topping the list, despite a promise to fix them.

"I want them to keep their word to what they say they would do," said Williams.

The board's legal counsel tells News 5 both the ownership and management company have failed to achieve the desired results and they will likely request a court injunction.

Despite the Board of Health's recent findings, Yasmeen Drake said she has seen some improvement at North Pointe since our stories exposing deplorable living conditions started airing.

"I think it was all the attention, so you guys are doing your job doing what you're supposed to do. We have to keep the awareness and hold them accountable," said Drake.

The City of Euclid is also holding North Pointe owners accountable, reaching an agreement for them to make millions of dollars in repairs to fix crumbling balconies and the underground garage.

"We all have to stay vigilant. If we go to sleep again then the same thing may happen again," said Drake.

Questions are now surfacing about the owners' ability to follow through after defaulting on their $38 million mortgage.

Trepp, a company that tracks large commercial loans in default, reports the amount of cash flow available to pay down North Pointe's debt has decreased every year since 2015. They point to a drop in occupancy.

"A lot of people did move out," said Drake.

At last check, Euclid City Councilman Daryl Langman said the vacancy rate for North Pointe was at 35 percent.

Drake, who has lived there for four years, is hopeful things will continue to improve.

"I'm just grateful for any sort of change, any sort of progress and I hope they continue to keep it up," said Drake.

Councilman Langman tells News 5 he feels North Pointe being in default is a relief since the current ownership has been nothing but a headache.

Those owners have until July of next year to complete repairs. They will soon likely be back in court for on-going health violations.