State housing authority asks court to appoint receiver for troubled Model Tobacco apartments in South Richmond

Virginia’s housing authority is asking a Richmond court to appoint a receiver for South Richmond’s iconic Model Tobacco apartment building after it says the company behind its redevelopment stopped making payments on a $34 million state loan this May. 

The Model Tobacco Development Group, helmed by former Detroit Lions player Christopher Harrison, bought the old tobacco factory complex on Richmond Highway for $8.6 million in June 2020. The developer has since converted the site into 220 residential units using a $34.7 million construction loan from Virginia Housing and roughly $20 million in state and federal tax credits. The apartments opened to tenants in 2022.  

But this May, Model Tobacco Development ceased its monthly loan payments to Virginia Housing and has also failed to carry out major necessary repairs to the roof, said the housing authority. 

The situation appears to have been compounded by Harrison’s October indictment on federal embezzlement charges related to the Model Tobacco development and a project in North Carolina. Under the conditions set by the court for his release ahead of trial, Harrison is prohibited from conducting “any financial transaction” related to Model Tobacco Development Group and other companies related to the project that he has a stake in.  

Harrison pled not guilty and is seeking a jury trial.

“At this point, it is unclear whether [Model Tobacco Development] is able to operate in any corporate capacity to fulfill its duties and obligations related to the loan and property,” wrote Virginia Housing in a petition filed in Richmond Circuit Court on Dec. 11. “At a minimum, the criminal restrictions … placed on Harrison seriously call into question whether the borrower or tenant are able to manage their affairs.” 

A phone call to the C.A. Harrison Companies, the parent of the Model Tobacco Development Group, was not returned. An email to the company’s general inbox was returned as undeliverable. 

The special receiver Virginia Housing is asking Richmond Circuit to appoint would have the power to manage and operate the Model Tobacco site ahead of any foreclosure sale or other arrangements for the property. 

“In view of … the real possibility of waste and damage to the property, immediate action is necessary with respect to the preservation and management of the property,” wrote Virginia Housing in its petition. 

Court filings show Trigild IVL, LLC, a firm that specializes in receivership cases, is willing to act as Model Tobacco’s receiver. 

Virginia Housing has said appointing a receiver would also allow the site’s property manager, WPM MidSouth LLC, to remain in place. This fall, WPM’s on-site manager resigned and the company notified Model Tobacco Development that it intended to terminate its management agreement at the end of November due to a lack of communication. 

“If the existing management agreement for the property is terminated, there will be no party equipped to handle various functions vital for the day-to-day operation of the property, such as coordinating necessary repairs, maintenance and clearing, insuring that property-related expenses such as insurance premiums are timely paid, and collecting rents,” the authority wrote in a court filing. 

According to Virginia Housing, WPM MidSouth has agreed to continue in its role on a month-to-month basis if a receiver is appointed.