Jailed landlord David Kircher's Ypsilanti properties for sale on two separate auction blocks
Jailed landlord David Kircher's Ypsilanti and Ypsilanti Township properties will be for sale at two auctions in July.
Around 30 properties will be for sale as part of a bankruptcy auction held at Colliers’ Ann Arbor office, while another five will be sold in the Washtenaw County Treasurer’s Office upcoming tax foreclosure auction.
Kircher filed for Chapter 11 in U.S. Bankruptcy Court in Detroit in February and a judge approved a motion to appoint a trustee to oversee his assets.
He is serving a five-year term in state prison in Jackson for illegally diverting raw sewage into the Huron River via a public sewer from the Eastern Highlands apartment complex he owned in 2004.
Tom Perkins | For AnnArbor.com
According to court documents, Kircher owns 36 properties in Ypsilanti and Ypsilanti Township, which are valued at approximately $5.6 million.
All proceeds from the bankruptcy auction will go to pay back Kircher’s debts, while proceeds from the tax foreclosure auctions will pay down back taxes he owes.
According to court documents, Kircher holds $2.7 million in debt. The largest debt is to the State of Michigan, to which he owes $1.1 million, mostly stemming from a fine for dumping the raw sewage. He also owes $112,448 to DTE Energy and $80,000 to Ypsilanti Township for legal fees. His former attorney, George Ward, is owed $25,000 for his services.
Documents show Kircher is involved in numerous lawsuits, one of which involves a dispute over the $3.5 million Eastern Highlands complex on LeForge Road in Ypsilanti Township. That complex is not part of either auction.
Ann Arbor’s Colliers, which was appointed by the court to oversee the sale of the properties governed by bankruptcy court, was asking $947,000 for Kircher’s portfolio of homes it controls. The properties vary from single-family homes to lots to student housing near Eastern Michigan University. Many are condemned or in disrepair.
Colliers has taken offers for the properties and its court-appointed trustee has set a reserve price that bidders must meet. That reserve is kept secret, and bidders, who will gather at Collier's office on July 26, will be told if their bid exceeds the reserve and previous offers.
Colliers’ Brendan Cavender said his office is marketing the homes with the help of Keller-Williams, and the properties are available for viewing and inspection prior to the auction.
“We’ve been hearing from people who want to invest in EMU campus real estate who are looking for good investments. There are people looking to fix up single-family residences. We’ve had a multitude of people inquire about them," Cavender said. "Some people are looking to get rich quick by putting a little money in and flipping them.”
If the properties don’t sell, Colliers can continue to market them.
Among the Ypsilanti properties at the Colliers auction are: 118 Ballard Street, 424 Ballard, 125 College Place, 130 College Place, 107 E. Cross Street, 302 E. Cross, 5 Driscoll Court, 3 Driscoll Court, , 220 N. Lincoln Street, 707 Pearl Street, 414 Perrin Street, 50 S. Summit Street, 46 S. Summit, 116 N. Summit, 43 S. Summit, 49 S. Summit, 11 S. Summit, 413 Washtenaw Ave., 313 Washtenaw and 315 Washtenaw.
The Ypsilanti Township homes include: 850 Allen Ave., 1536 Foley Ave., 649 Oswego Ave., 661 Oswego and 1117 Holmes Road. The auction also includes two homes in Wyandotte and one in Whitmore Lake.
The homes that are headed to the tax foreclosure auction through the Washtenaw County Treasurer's Office include 1133 Buick, 1145, Buick, 1766 Eilene and 1144 Buick in Ypsilanti Township.
The property at 422 N. Hamilton in the City of Ypsilanti is also in tax foreclosure and will be available for viewing through the city and treasurer office’s open house program.