The jailed owner of S2 Real Estate Group, Sam Stair, has appointed a property management company to oversee and collect rent from his properties while he’s locked up.
The move comes as federal prosecutors prepare to file a motion, seeking to take the unusual step of putting all of Stair’s 150 properties under a receivership where another company would essentially run his business. If a judge approves that, it would deny Stair all income from his properties.
Stair, 52, of Hales Corners, is charged with conspiracy, drug counts, maintaining a drug house and money laundering. If convicted, he faces a mandatory minimum of 10 years in prison and up to life behind bars.
Stair is one of 18 defendants in a sprawling federal drug case in which prosecutors allege he let drug dealers live in his properties and sell narcotics from them, getting a cut of the drug profits.
Stair has hired Smart Asset Management to manage his 150 properties, with about 500 total units, while he remains in federal custody, and Smart Asset may be the official property manager throughout the duration of the court case, according to Stair’s criminal defense attorney, Dan Adams.
In addition to the properties Stair personally owns, he manages several others for property owners across the city, Adams said.
Tenants who are unsure whether they live in a property owned by S2 Real Estate Group can call Smart Asset Property Management at 262-232-8738 to determine if their property is now under its management, Adams said.
“This is obviously a dynamic situation, and I think it’s everyone’s intent that the tenants be taken care of and that there is an open and transparent process for maintaining these properties going forward,” Adams said.
Smart Asset Management owner Adam McCarthy said he will collect rent to maintain the properties, and any funds left over after general upkeep will be held for Stair.
The management company will also be notifying all S2 Real Estate Group tenants that they will be taking over through posted notices on their doors.
Tenants can pay through Smart Asset Management by registering for a new portal account with the company through AppFolio, a property management application.
Tenants may get an email or text message from Smart Asset Management prompting them to register for an AppFolio portal account, McCarthy said.
Tenants can also pay rent by mail with a money order or cashier’s check, McCarthy said.
Tenants in apartments previously managed but not owned by Stair, who are unsure where to pay their rent, should also get a money order or cashier’s check with their name and the date listed.
They should get a receipt as proof they had the funds on time, but they should hold onto the payment, Lindenberg said.
Tenants who do not pay rent while their landlord is in jail can still be evicted, according to Shawanna Lindenberg, housing department manager at Community Advocates.
What does this mean for Stair’s federal case?
During Stair’s detention hearing in federal court on April 27, prosecutors said they want to put all of his properties in a receivership where someone else would control his rentals, to protect his legitimate renters.
The prosecutors said they knew of no other case like Stair’s, where the government has moved a landlord’s property into a receivership during a federal criminal case.
Adams argued that the receiver would not be effective, as Stair knows the workings of his company best and needs to be hands-on in order to manage it.
However, Adams did not comment on how Smart Asset can manage the company better than a receiver.
Prosecutors are expected to file a motion regarding a court-appointed receivership for Stair’s properties. There may be a hearing following that motion.
Public safety reporter David Clarey and investigative reporter John Diedrich contributed to this article.
Alyssa Salcedo covers Silver City, Layton Park and Burnham Park for the Journal Sentinel’s Neighborhood Dispatch. Contact: asalcedo@usatodayco.com.
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This article originally appeared on Milwaukee Journal Sentinel: Jailed Milwaukee landlord Sam Stair hands off properties to management firm
Reporting by Alyssa N. Salcedo, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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