The saga continues but there may be light at the end of the tunnel!
Some decisions have been made by the city concerning the fire code problem. The owner of the apartment in the adjacent build had been given a 30 day notice to vacate because there is no fire exit staircase and because the other staircase is in violation of the firecode due to the breach in the party wall. We'll wait and see how this works out with the city. Stay tuned :)
This has been a nightmare for the investors, and I am working on a due diligence list for commercial property, if anyone has one I would love to see it.