Karmel Mall owner faces foreclosure suit against his Minneapolis apartments over maintenance issues

Fannie Mae has initiated foreclosure proceedings against Basim Sabri's Rana Village and Karmel Village in Minneapolis, citing over $530,000 in unmet repair obligations. The lawsuit requests the court to appoint receivers for the properties on Pleasant Avenue S. Sabri contends that many repairs are exaggerated and that he has addressed the majority of necessary issues. He maintains that he is up to date on his loan payments and is prepared to pay off the mortgages if needed. The city has issued multiple citations for code violations at both locations, including pest control and safety equipment deficiencies.

A consultant's report indicated significant repair needs, including $250,000 for Rana Village's exterior cladding. Despite acknowledging some maintenance shortcomings, Sabri believes foreclosure is unwarranted. His developments are significant in the local Somali community, particularly with the Karmel Plaza shopping center.