HOUSTON-Kaplan Management Co. has taken over management responsibilities for three foreclosed multifamily properties previously owned by New York City-based GFI Capital. The three properties, which total 1,375 units, include Cambridge at City View, City View Place and Springfield at City View.
These class C properties are the first round of GFI Capital assets in Houston that are scheduled for foreclosure or receivership, according to local sources. According to its website, the company owns 12 more City View-branded properties, all of which will be going back to the lender, sources report. GFI Capital did not return GlobeSt’s call to discuss the distressed properties.
CW Capital of Washington, DC foreclosed on Cambridge at City View, City View Place and Springfield at City View in July and immediately hired Kaplan to take over the properties, according to Michelle Rhone, Kaplan’s vice president of management. The two companies have worked together previously on other properties in Arizona, Texas and Nevada.
GFI Capital acquired the communities from Lincoln Property Company more than five years ago. During its ownership, the properties languished and became a haven for criminals, Rhone tells GlobeSt. CW Capital hired Kaplan to work through the properties’ distress.
“This lender believes there is value in these assets, and their goal is to hold them for a minimum of two years,” Rhone says. “We are evicting those tenants who don’t pay rent and working to create a new City View by improving the tenant profile and building a community.”
Rhone says Kaplan is working with the Houston Police Department to open a police substation at City View Place. Moreover, the company has created a plan to establish a number of civic programs to serve the City Place assets including a wellness clinic, tutoring from Houston Independent School District, vocational training and YMCA swimming lessons.
Additionally, Kaplan will work with CW Capital to address deferred maintenance issues, Rhone says. The lender has already invested $100,000 to address immediate maintenance needs at the properties, she adds.
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