Creditors have filed for foreclosure on a student housing facility in Youngstown that is connected to a local developer who is a defendant in a state corruption case.
In a court filing dated Monday, U.S. Bank National Association and their partners filed for foreclosure on the Flats at Wick, LLC, 139 W. Madison Ave.
Youngstown developer Dominic Marchionda and the Mahoning County Treasurer are also named as defendants in the foreclosure filing.
Flats at Wick, LLC is in default of a $5.5 million dollar loan on the facility with a balance of $4.7 million plus fees and interest amounting to $5.2 million.
According to the court filing, the loan is in default because the borrower “failed to deposit all rents into the restricted accounts, fund all required reserves, and deposit excess cash as required by the loan agreement.”
The loan was originated in December 2012 for $5.5 million. Flats at Wick, LLC, was notified in April 2018 and then again in September of that same year that the loan was in default.
An extension was given in December 2018, but the loan was not made good and preliminary foreclosure procedures were implemented March 31, 2019, with the company receiving one last chance to make good on the loan by April 5, 2019.
The property is ordered to be sold.
Flats at Wick, LLC, is not affiliated with Youngstown State University and is only listed on YSU’s housing website as a “referred” off-campus property, among others, and does not inspect the units.
Developer Dominic Marchionda was indicted last year on corruption charges. Marchionda’s NYO property group is affiliated with Flats at Wick, LLC. He is facing 101 counts for charges including bribery, theft and engaging in a pattern of corrupt activity.
Others buildings affiliated with Marchionda include Erie Terminal Place and the Wick Towers.