Ex-Victory Square Apartments landlord out, new owner plans upgrades for Canton complex

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CANTON – City attorneys say newly provided documents show the new owner of Victory Square Apartments is not connected to the former landlord who failed to fix the deplorable living conditions that prompted federal housing officials to relocate the tenants.
Phillip Schandel, assistant law director with the Canton Law Department, said representatives of Victory Square's new owner, Lippert Road Apartments LLC, on Aug. 12 provided internal company documents, including an assignment agreement and company operating agreements, that show Green Victory Square, which had owned Victory Square Apartments since 2021, sold its interests in the now vacant, three-building apartment complex at 1206 Lippert Road NE, 1209 Eighth St. NE and 1223 Eighth St. NE.
The documents, which the law department provided to the Canton Repository, also show that Hannah Brach of New York is the sole member and owner of Lippert Road Apartments, which uses a Cleveland address. A purchase price is not shown in the documents.
Canton officials initially believed the city had been deceived when the Canton Repository began asking questions about a document Brach filed with the Stark County Auditor's Office that stated Green Victory Square was the sole owner of Lippert Road Apartments. The document and subsequent inspection of the apartment complex prompted the city to refile the lawsuit it previously dismissed against Green Victory Square and add Lippert Road Apartments as a defendant. The lawsuit asks a Stark County Common Pleas judge to declare the 81-unit apartment complex a public nuisance.
Attorney: Victory Square ownership transferred by drop and swap
Fred P. Schwartz, a Cleveland Heights-based attorney representing Lippert Road Apartments, said Brach and Green Victory Square used a real estate transaction known as 'drop and swap' to transfer ownership of Victory Square Apartments.
He explained the transaction this way: The seller (Green Victory Square LLC) creates a new entity (Lippert Road Apartments LLC), which the seller owns. The seller then 'drops' or transfers the property (Victory Square Apartments) to the new entity. The buyer (Hannah Brach) purchases the seller's membership interests in the new entity. The seller takes the money from the purchase and exits the new entity, leaving the buyer as the sole member of the new entity and owner of the property.
According to real estate investment experts, the drop-and-swap method allows sellers to avoid paying capital gains taxes because the seller is expected to reinvest the purchase proceeds into a similar property.
When asked why Brach — and not Green Victory Square — created Lippert Road Apartments LLC in February, Schwartz, who did not represent Brach during the real estate transaction, said Brach's filing of the articles of organization is immaterial because Green Victory Square was the original owner.
Brach also filed an affidavit of facts with the Stark County Auditor's Office that attested Green Victory Square was the sole owner of Lippert Road Apartments in June, which was two months after she and Troy Green, owner of Green Victory Square, finalized the drop-and-swap paperwork. Brach filed the affidavit to explain why the property transfer should be exempt from conveyance fees.
Schwartz said it is not uncommon for delays to occur in filing documents. He said Brach's affidavit had been created before the deal closed.
It's unclear why Green Victory Square did not follow through with the proposed purchase agreement it had — and gave city officials — that shows Mayer Brach of New York-based MBC Group LLC was to buy Victory Square for $2 million.
Green National, the parent company of Green Victory Square, did not return messages seeking comment.
Will Canton's lawsuit against Victory Square's owner continue?
Schandel said the new information may lead the city to dismiss Green Victory Square from the lawsuit it filed on July 9, but the lawsuit will continue against Lippert Road Apartments.
The complaint seeks a judge's order to force Lippert Road Apartments to fix the problems at Victory Square and pay the city's fines and fees for building code enforcement.
Using an administrative warrant, Canton code enforcement officers inspected Victory Square on July 8 and found that conditions were worse than in May 2024 when the U.S. Department of Housing and Urban Development moved the tenants to hotels due to unsafe and unsanitary living conditions.
'Right now, it's in no shape to live in,' Schandel said. 'Our lawsuit is going to remain until that changes.'
Schwartz said city officials and residents will start to see improvements at Victory Square soon.
'The article I want you to write, but you won't be able to write for probably 60 days, is the transformation of this building, which is going to happen,' he said.
Reach Canton Repository staff writer Kelli Weir at 330-580-8339 or [e-mail].
This article originally appeared on The Repository: Victory Square Apartments new owner not connected to former landlord
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