A spokeswoman for Wells Fargo tells GlobeSt.com she hasn't seenthe motion, and she referred inquiries about the properties' upkeepto the special servicer, LNR Partners. Calls to LNR and to MilbankReal Estate Services, which defaulted on a $35-million mortgage onthe portfolio, were not returned by deadline.

The filing on behalf of tenants at the portfolio was announcedWednesday by attorneys from Legal Services NYC-Bronx and severallawmakers, including City Council Speaker Christine Quinn. "Asproperties like these move into foreclosure, tenants are left in astate of limbo, not knowing who is responsible for criticalrepairs," Quinn says in a release. "Through this lawsuit, we'resaying that lenders must be held accountable for the propertiesthey helped finance. No family should have to live in deplorableconditions because of the unsustainable investments that someoneelse made."

In 2007, Los Angeles-based Milbank acquired the rent-stabilizedapartment buildings, on the premise that the Bronx was poised forgentrification, according to the filing. The acquisition wasfinanced through a $35-million Deutsche Bank loan in connectionwith the $3-billion COMM 2006-C8 CMBS trust.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.