The Student News Site of Saint Louis University

The University News

The Student News Site of Saint Louis University

The University News

The Student News Site of Saint Louis University

The University News

Problems beleaguer Lofts on Laclede

One of the largest providers of off-campus housing for Saint Louis University students may be in jeopardy. Former tenants of the University Heights Lofts began filing complaints with the Better Business Bureau in 2008, many of which center on failure to return security deposits.

Most recently, on Oct. 28 the partnership that owns the Lofts filed for chapter 11 bankruptcy.

The partnership owes more than $40 million to Fannie Mae, the Federal National Mortgage Association, according to an article published in the St. Louis Business Journal. The Chapter 11 Voluntary Petition was filed with the U.S. Bankruptcy Court – Eastern District of Missouri (St. Louis).

Chapter 11, referred to as “reorganization” bankruptcy according to the website of the United States Courts, usually involves a corporation or partnership. A chapter 11 debtor typically proposes a plan of reorganization to keep its business alive and pay creditors over time.

Danielle Meier, a junior in the College of Arts & Sciences and a current tenant in the Lofts, said that management has not notified tenants of the current legal or financial condition of the property. “I would think that it was within our rights as residents to receive information about the situation in order to dispel any myths or at least offer some reassurance,” she said.

Story continues below advertisement

Bruce Development Co. began a $60 million historic redevelopment project on the complex three years ago. The company website states that the original financing project came through a mixture of state and federal historic tax credits, tax increment financing (TIF) and conventional financing.

The 260,000 square foot renovation includes 264 rental loft-style apartments and 40,000 square feet of commercial space. A management company, Midland Management, was created by Bruce Development solely to manage its developments and investments. Midland currently manages over 4,000 rental units.

At present, Midland Management has a BBB rating of F on a scale from A+ to F. The reasons for the rating include 30 complaints filed against the business in the last 36 months. Midland has failed to respond to 15 of these complaints. The BBB website lists that reasons for the complaints include billing or collection issues, contract issues, and refund or exchange issues.

Bill Smith, a trade practice investigator with the BBB, said that whenever the BBB receives a complaint, they send out letters and attempt to contact the company. Smith said that the BBB received no response to any of its attempts at contact and during the course of the investigation he went to the Midland offices to speak with someone regarding the 15 unanswered complaints. “Even after that, they have not resolved many of the complaints,” he said.

The BBB also notes that complainants allege that Midland failed to return security deposits after tenants had moved from rental properties. Section 535-300 of the Missouri Revised Statues states that security deposits must be returned within 30 days of the end of a lease. Several of these complaints regarding security deposits are still pending. Neither Midland nor the Lofts leasing office returned phone messages for comment.

A recent SLU graduate said that she had to wait more than 90 days to receive her security deposit from Midland after moving out of the Lofts at the end of June.

The Lofts leasing office told her to contact Midland, and after calls went unanswered, she sent a letter threatening legal action. She received her deposit back in early October, two weeks after the letter was sent.

Former SLU student Colleen Smith did not have to fight for her security deposit, but she likened her experience as a tenant living in the Lofts to living in a “housing project.”

Issues with the management and a lack of building cleanliness made living in the Lofts, “a very expensive nightmare,” Smith said.

Smith said she initially was willing to pay higher rent to live in the Lofts for “the convenience of living close to school in a secure building,” but her experience was not satisfactory.

She said the elevators were constantly broken and that the building was “unsanitary.”

Due to these conditions, observers “would never know that [the property is] a four-year-old rehab,” she said.

Current tenants seem to have mixed reviews of their experience thus far living in the Lofts.

Jon Gutzeit, a senior in the College of Arts & Sciences, said, “In all honesty, things have gotten a little better since I signed my lease and moved in this past May.”

He also said that if “all stays the same,” he plans on staying in his apartment next year.

Though current tenant Lyle Wilson, a senior in the College of Arts & Sciences, doubts that he will ever receive his deposit back after he moves out, he said he can’t complain about the inexpensive rate he pays each month.

“The conditions may not be ideal and management may be difficult to work with, but I’m young and can afford a little extra [stresses] in that area so long as it takes the stress off my wallet,” Wilson said.

Tenant opinions aside, the future of the apartment complex is now in the hands of the U.S. Bankruptcy Court.

Tenants seem to agree that the potential loss of a convenient source of housing due to these issues would be a shame, but as Meier said, “I can’t afford to play financial roulette with a security deposit of enough money to buy next semester’s books.”

View Comments (1)
Donate to The University News
$1410
$750
Contributed
Our Goal

Your donation will support the student journalists of Saint Louis University. Your contribution will help us cover our annual website hosting costs.

More to Discover
Donate to The University News
$1410
$750
Contributed
Our Goal

Comments (1)

All The University News Picks Reader Picks Sort: Newest

Your email address will not be published. Required fields are marked *