Posts Tagged ‘rent control’

Latest on Lembi Collapse

January 22nd, 2010 No Comments

From SF Business Times:

Klingbeil Capital latest to feast on Lembi holdings
Klingbeil Capital Management has joined the growing cadre of private real estate investment firms taking advantage of the dramatic implosion of the Lembi family’s apartment empire. The Washington D.C.-based owner paid $10 million for three San Francisco buildings previously owned by the Lembi Group, which has lost thousands of units to foreclosure over the past 18 months.
Klingbeil Capital Management purchased the 41-unit 646 Corbett St. in Twin Peaks for $6 million, and the 35-unit 620 Eddy St. in the Tenderloin for $2.6 million. The third building, the 19-unit 1082 Post St., was not disclosed, although it had been marketed just under $2 million.
The buildings at 646 Corbett St. and 620 Eddy St. were still owned by the Lembis, but sold in cooperation with the lender, Resource RE. The building at 1082 Post St. was among the 50-plus buildings the Lembis gave back to the Swiss Bank UBS in lieu of foreclosure.
Stephen Pugh and Mark Bonn of Alain Pinel Investment Group represented the sellers.

Same Business Plan, Different City

December 21st, 2009 No Comments

A British company, The New York Times reports, had the same idea as the Lembi’s did, and met a similar fate. Dawnay Day bought up 47 rent controlled apartment buildings in East Harlem hoping to “ease out” the lower paying tenants and rehabilitate the apartments for a more affluent crowd of urban pioneers. The bottom fell out from underneath them and the firm had to sell its yachts and museum quality art collection. As you can imagine, the apartments were not high on their “to do” list. Dawnay Day started charging tenants for basic repairs. As the Times’ article says, “anger, uncertainty and a degree of misery have set in” as the buildings move toward foreclosure.

http://www.nytimes.com/2009/12/22/nyregion/22dawnay.html?hp

Joaquin Rufiles and Josefina Toiralua with their daughter, Stephanie Rufiles, 18 months, in their East Harlem building.

Joaquin Rufiles and Josefina Toiralua with their daughter, Stephanie Rufiles, 18 months, in their East Harlem building.