Flats at Wick Student-Housing Complex Sold for $4.4M
YOUNGSTOWN, Ohio – A student-housing complex near Youngstown State University that factored prominently in a public corruption scandal five years ago has been sold to a New York developer for $4.4 million.
According to records from the Mahoning County Auditor’s office, The Flats at Wick, 139 Madison Ave., was sold Jan. 27 to LHU Flats at Wick L.P.
The Ohio Secretary of State’s office shows that LHU filed amended articles of incorporation on Jan. 12. The documents list LHU FAW LLC of Monroe, N.Y., as the entity’s general partner. The articles of incorporation names Chesky Hoffman as the authorized representative for the partnership.
Businessman Dominic Marchionda and NYO Property Group developed the Flats At Wick in 2012 on the corner of Elm Street and Madison Avenue, just north of the university.
In 2019, Morgan Stanley Bank filed a foreclosure action against the Flats, claiming the developer was in default of a $5.5 million loan that was secured in December 2012.
The plaintiff in the foreclosure was U.S. Bank National Association, which acted as trustee for Morgan Stanley, according to papers filed in Mahoning County Common Pleas Court.
The property went up for auction in August 2022, and U.S. Bank acquired the 49-unit apartment complex for $5.1 million.
According to auditor’s records, the Flats at Wick is appraised at $4.4 million for tax purposes.
Marchionda was indicted on corruption charges in 2018, alleging he used public grant money for purposes other than the Flats at Wick project and other downtown developments.
The developer pleaded guilty in August 2020 to four counts of tampering with records and agreed to step down from management at NYO Properties. Marchionda was sentenced to five years of community service.
Also indicted were David Bozanich, former city finance director, and former Mayor Charles Sammarone. Sammarone pleaded in March 2020 to two counts of tampering with records. He received five years’ probation and 30 days of supervised community service.
Bozanich in August 2020 pleaded guilty to two misdemeanor counts of unlawful enrichment of a public official and two felony counts of bribery and tampering with records.
Bozanich was sentenced to a year in prison.
Published by The Business Journal, Youngstown, Ohio.