Four apartment buildings in East Orange, New Jersey are referred to in bankruptcy documents filed by apartment owner and operator Connolly Properties Inc. in the U.S. Bankruptcy Court in Newark in the last week of July.

The same apartment buildings were the target of motions of foreclosures filed by Fannie Mae in the U.S. District Court in Newark two days before the bankruptcy case was filed.

According to the documents filed by Fannie Mae against Connolly Properties, its CEO David Connolly and the 4 limited liability companies holding the 4 apartment buildings, the Connolly enterprise owed $17.8 million for the acquisition of the apartment buildings in June 2007. Connolly agreed to pay Fannie Mae approximately $115,700 a month until July 2017, but Fannie Mae claimed Connolly has failed to pay its monthly due since April 1.

Fannie Mae also included in its filing a letter in June to David Connolly demanding immediate payment for almost $18 million, representing the loan balance plus interests and late fees.

In the Fannie Mae filing, Connolly Properties was also accused of reducing the value of the apartment buildings because of its failure to maintain the properties and pay water, sewer and other municipal charges.

Meanwhile, in the bankruptcy documents filed by Connolly, additional loans by Connolly and the four LLCs to various entities were listed. Included are unsecured loans of $230,469 owed to Hess Corp., $182,626 owed to Citibank, $47,908 owed to PSE&G and over $56,000 owed to law firm Brach Eichler.

Connolly also included in its filing a document ordering utility companies to continue providing services to the 4 apartment buildings, which have lots of tenants.

Jon Searles, spokesperson for Fannie Mae, said that typically in apartment foreclosures, the court appoints receivers that become managers of the properties, doing things such as collecting rents, repairing defects and ensuring the safety and good quality of life of tenants.

Ron Simoncini, spokesperson for Connolly Properties, said that the firm is negotiating with Fannie Mae concerning the debts and is hoping to continue as operator and owner of the buildings.

The biggest of the 4 buildings, called Fulton Towers, is an 11-story building with 114 units. It was built in 1929, the same year the building on 158 S. Harrison was built. The building on 120 S. Harrison was built in 1925.

Recently, Connolly Properties became the target of criticisms from local officials and tenants for substandard conditions in several of its 29 distressed properties in East Orange and in other cities.