What do professional baseball players do with the millions theyrack up during their careers? Some, like Maurice “Mo” Vaughn, formerly aNew York Mets first baseman (after alonger career with the Red Sux…er, I mean Sox), enter the realestate business. Vaughn’s company (which he formed with hisattorney, and fellow managing director Eugene Schneur),Omni NewYork, develops and revitalizes properties andneighborhoods, working with community groups on social improvementsas well as providing affordable housing.

Lately, it’s made a big splash in the distressed real estatemarket. Yesterday, the Real Deal reported that the firm wonan auction for 14 rent-stabilized troubled apartment buildings inthe Bronx that held a loan balance of nearly $24 million. Omniinitially purchased the notes last year, a deal that was touted bycity officials and housing advocates alike. The properties weredeemed abandoned by former owner Ocelot Capital Group, and were insuch a detrimental state that the NYC Housing Preservation andDevelopment department put all but three of them on the list ofworst-maintained buildings in the city. So last year Vaughn agreedto shell out $1 million in emergency repairs, spending about halfof that by midyear 2009.

But this wouldn’t be a New York City real estate deal withoutsome controversy. According to some in the market, Omni bought thenotes from Fannie Mae through Deutsche Bank at an almost 80%discount, or $5 million. Those contesting the deal say the debtcould have garnered a much higher price, and blame political andmedia pressure, as well as the efforts of a certain nonprofitgroup, UrbanHomesteading Assistance Board of Manhattan, whichlobbied for Omni’s purchase.