CANTON – City officials say they were told that Victory Square Apartments would be sold for $2 million to a New York-based company with a good track record of fixing failed properties.
But Stark County real estate records show it wasn’t true.
New York-based Green Victory Square, which acquired Victory Square Apartments in 2021 and was sued by Canton last year for failing to fix health and safety hazards at the 81-unit complex, told Canton attorneys that Mayer Brach of MBC Group LLC was buying Victory Square.
Canton Law Director Jason Reese said they gave the city a purchase agreement that shows Brach was to pay $2 million for the purchase of the three-building complex at 1206 Lippert Road NE, 1209 Eighth St. NE and 1223 Eighth St. NE. The agreement, which was signed by Brach and Troy Green of Green Victory Square, said the closing was to occur before January 9, 2025, and was contingent on approval by Canton and the court.
But Stark County auditor records show that Green Victory Square transferred the Victory Square property on June 18 to Lippert Road Apartments LLC, a Cleveland company created in February.
Hannah Bach, representing Lippert Road Apartments, stated on the auditor form that the new owner obtained the property “for no money or other valuable consideration,” and that Green Victory Square is the sole owner of Lippert Road Apartments.
Messages seeking comment from Green National, which is the parent company of Green Victory Square, and from Hannah Brach were not returned.
Canton law director: Previous owner’s involvement ‘actively concealed from the city’
Green Victory Square’s involvement comes as a surprise to Canton officials, who learned about it Thursday after the Canton Repository asked questions about the connection.
Canton sued Green Victory Square last year to force the out-of-state landlord to fix the health and safety hazards that had persisted at Victory Square since at least mid-2023. The hazards had prompted the U.S. Department of Housing and Urban Development to take the rare step of ending its housing subsidy contract with Green Victory Square and then relocating the tenants.
Reese wrote in an emailed response to the Canton Repository that the city had been communicating with Green Victory Square and the proposed new owners for months as part of the lawsuit and before the sale of the property.
“This was not communicated to the city by Green Victory Square LLC or its attorneys at any time and appears to have been actively concealed from the city,” Reese said.
Court records show the city dropped its lawsuit against Green Victory Square on June 18 — which is the same day that the property transfer with Lippert Road Apartments was completed.
Why did Canton drop its lawsuit?
Reese said Canton dismissed its lawsuit against Green Victory Square because Victory Square Apartments no longer fits under the subsidized housing portion of the nuisance statute, the units have been mostly cleaned out, roof replacement plans have been approved by the city building department and the $40,200 in city fines have been paid.
“The fact that Green Victory Square LLC is still effectively the owner has no effect on the case,” Reese wrote. “However, the city will continue to monitor the property through its building department and law department and will refile the case if the conditions do not improve.”
Before the property transfer was completed, The Canton Repository had contacted MBC Group to discuss the company’s plans for Victory Square.
A representative called back and said the company’s owner, Hannah Brach, plans to renovate all three buildings.
“Our plans are to put her back in nice shape,” said the representative who declined to provide his name. “They’ll be very nice apartments.”
He expected that at least half of the 81 apartment units would be ready to rent within three months, with the rest ready to reopen within six months.
When asked how the extensive repairs could be made so quickly, the representative said the company purchases and renovates properties nationwide. He said it owns another Ohio apartment complex in Cleveland.
The address that Lippert Road Apartments used for its Victory Square acquisition paperwork refers to an apartment complex in Euclid that was purchased in 2023 by Euclid Apartments LLC, where Mayer Brach is the managing member, according to Cuyahoga County public records.
Mortgage records filed with the Stark County Recorder’s Office show that Hannah Brach, representing Lippert Road Apartments, obtained a $4 million commercial loan for Victory Square Apartments. The loan documents list the borrowers as Brach, Signature Appliance Center in New Jersey, Farbes Painters in New York and Seeit Signs in New York. Business filings show each company is either affiliated with the Brach family or uses the same New York address that is used for MBC Group LLC.
Reach Canton Repository staff writer Kelli Weir at 330-580-8339 or kelli.weir@cantonrep.com.
This article originally appeared on The Repository: Victory Square Apartments’ new owner connected to ex-owner. Canton says it was deceived
Reporting by Kelli Weir, Canton Repository / The Repository
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