We're following through on this story:
- The WCPO 9 I-Team began reporting on landlord John Klosterman's numerous building code violations and criminal cases in 2018.
- Then, we reported on how his growing legal and financial issues forced Klosterman to sell his real estate empire.
- Now, we're showing you what's happening to those former Klosterman properties.
CINCINNATI — Local leaders and officials with the Port Authority gathered Thursday for a ribbon-cutting ceremony celebrating the completion of two renovated homes on Sedam Street.
The homes are the first phase of a larger effort to restore housing in the neighborhood and create new opportunities for home ownership. The project comes after years of reporting by WCPO 9 News on properties that had fallen into severe disrepair under the ownership of former landlord John Klosterman.
According to Port Authority officials, the two homes unveiled Thursday were previously owned by Klosterman. They are among 18 homes slated for full renovation, with all projects expected to be completed by December.
WATCH: How these homes will help encourage home ownership in Sedamsville
Klosterman lost dozens of properties in 2023 through a receivership acquisition involving the Port Authority and the City of Cincinnati.
City officials said at the time that he owed nearly $600,000 in unpaid city taxes, code violation fines and related fees. The newly renovated homes will be listed for sale between $120,000 and $180,000, with the goal of transitioning the properties from neglected rentals into owner-occupied housing.
Officials say the broader initiative is designed not only to improve housing conditions but also to prevent neighborhood decline caused by absentee and large-scale property owners.
“You know, a lot of where we are seeing large portfolio ownership go is private equity,” said Lindsey Florea, senior vice president of real estate for the Port Authority. “It’s coming into neighborhoods and buying up multiple properties on one street and taking equity out and not reinvesting. Then, when it gets to a significant amount of disrepair, they walk away. So getting in early is important.”
Florea said the overall investment for the renovation effort is approximately $8 million.
The Sedamsville redevelopment project is part of a broader strategy to stabilize neighborhoods, rehabilitate distressed properties and increase access to affordable homeownership opportunities across Cincinnati.
