Posts Tagged ‘San Francisco real estate’

Now the Lembi hotels are in trouble

April 10th, 2010 No Comments

Andrew Ross in the SF Chronicle has been staying on top of the continuing dismantling of the Lembi real estate empire. Earlier this month, he noted that the Lembi group was about to be sanctioned $30,000 by the court for not providing their part of discovery in a law suit brought by former tenants who could not get their security deposits back. In February, the court fined the Lembis $50,000 for not meeting discovery requests for the suit brought by the San Francisco City Attorney’s office in 2006.

The other bad news for the Lembis was that Yvonne Lembi Detert, the daughter of Frank L who runs the family hotel business, was having a hard time making payroll. Her highly leveraged hotels haven’t been doing very well during the downturn. The company recently placed the hotels in Chapter 11 bankruptcy protection. Lembi-Detert was able to make payroll in the beginning of the month but it was unclear if mid-month paychecks would be forthcoming. Sick days and vacation days were not being paid either.

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.