MILWAUKEE — A Milwaukee County judge on Wednesday granted a receivership over dozens of rental properties linked to landlord David Tomblin after U.S. Bank said one of his companies failed to keep up with payments on a loan.
The ruling affects roughly 86 rental properties owned by RFR II A LLC, one of several companies operated by Tomblin, the owner of Highgrove Holdings, according to U.S Bank's attorney.
The properties represent roughly one-third of Tomblin's Milwaukee-area portfolio.
Watch: Judge orders new management for dozens of landlord's properties:
The decision comes less than three months after the City of Milwaukee filed major public nuisance lawsuits against Tomblin's companies, alleging widespread property neglect, code violations, vacancies, and unpaid property taxes across more than 200 properties.
For tenants like Carolyn Ferguson, the ruling brings hope.
"Now that they took the property, I thank God for that," Ferguson said. "Maybe we can get something done around here."
Ferguson recently showed TMJ4 what she described as years of unresolved problems inside the home she rents from Highgrove Holdings, LLC, including a leaking ceiling, damaged flooring, and electrical concerns.
U.S. Bank told the court Wednesday that Tomblin's company failed to keep up with payments on a loan tied to the properties and missed a deadline to bring the debt current. The bank then asked the court to appoint a receiver.
Tomblin's attorney did not oppose the receivership.
Instead, the attorney argued the company had been working with an investment bank to raise between $20 million and $30 million that could have been used to refinance debt and improve properties.
The attorney said potential investors became hesitant after the City of Milwaukee filed lawsuits against Tomblin's companies, and the case drew media attention.
The ruling was welcomed by Common Ground, a group that has organized tenants living in many of the affected properties.
"It's a new day for tenants," Common Ground organizer Kevin Solomon said after the hearing.
"The whole lawsuit — ours and U.S. Bank's — is to abate the nuisances," Solomon said. "We want to see them address the problems so tenants can have a new day."
The receiver will now collect rent and manage the properties.
The court ruling comes just days after Tomblin made his first public remarks since the city filed its lawsuits.
At a Monday news conference, Tomblin disputed claims that he was ignoring tenant concerns.
"We are addressing them, but in the proper time,” Tomblin told TMJ4.
TMJ4 reached out to Tomblin on Wednesday seeking a reaction to the receivership, but did not receive a response.
The newly appointed receiver said the immediate focus will be on stabilizing the properties and assessing tenant needs.
"First, my team will conduct a comprehensive assessment of the portfolio to better understand the condition of the properties and needs of residents," the receiver, Kali Resoluton Partners LLC, said in a statement.
"As that process moves forward, we will work diligently to preserve the properties while maintaining open lines of communication with tenants and other stakeholders."
For Ferguson, the court battle is secondary to what happens next.
"I'm just happy someone took it over because hopefully they'll do right by us," she said.
This story was reported on-air by Kaylee Staral and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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