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CitiApartments/Skyline Tightens Grip on S.F. Apartment Market
The San Francisco Business Times reports today that the ever-expanding Lembi real estate empire added another 15 apartment buildings to its portfolio in February. This brings the number of San Francisco apartment units controlled by CitiApartments (aka Skyline Realty) to 6152. The investor groups controlled by the Lembi family paid $137.6 million for the properties, which are located throughout San Francisco. The purchases renew questions as to the impact Lembi’s increased control of the San Francisco apartment market, as the group was sued by the City Attorney’s Office in August 2006 for unfair business practices. Is an ownership group charged with violating city rent control laws driving law-abiding landlords out of the San Francisco? And what are the implications for tenants when one company exerts dominant control over the city’s 40-120 unit rental market?
San Francisco Business Times reporter J.K. Dineen came up with another major scoop today, revealing further expansion of the Lembi/CitiApartment/Skyline real estate empire. The February 2007 purchases adds 452 units to the company_s portfolio. While the properties were bought by four separate limited liability corporatons (LLC’s), all shared CitiApartments’ 2099 Market St. address.
The buildings include a 114-unit building at 825 Post St., a 51-unit building at 982-990 Post St., a 33-unit building at 3649 Market St., a 40-unit building at 4130 Cesar Chavez, and 35 units at 808 Leavenworth St. The properties span every neighborhood on the eastside of San Francisco, including Nob Hill, Noe Valley, the Marina, Western Addition, Russian Hill, and Pacific Heights.
In November 2006, Skyline purchased ten apartment buildings. Dineen of the Business Times reported then that Skyline will often pay 16-18 times the building’s gross rent – whereas most investors refuse to pay more than 13 times gross rent..
City Attorney Dennis Herrera sued CitiApartments in August of 2006, alleging that the Lembi-controlled properties could pay higher prices for apartment buildings due to its strategy of illegally driving out longterm tenants and then dramatically increasing rents. The city alleged that the Lembi’s even used armed security guards to “convince” tenants paying below-market rents that moving out was in their self-interest.
More
http://www.beyondchron.org/news/index.php?itemid=4282#more
The buildings include a 114-unit building at 825 Post St., a 51-unit building at 982-990 Post St., a 33-unit building at 3649 Market St., a 40-unit building at 4130 Cesar Chavez, and 35 units at 808 Leavenworth St. The properties span every neighborhood on the eastside of San Francisco, including Nob Hill, Noe Valley, the Marina, Western Addition, Russian Hill, and Pacific Heights.
In November 2006, Skyline purchased ten apartment buildings. Dineen of the Business Times reported then that Skyline will often pay 16-18 times the building’s gross rent – whereas most investors refuse to pay more than 13 times gross rent..
City Attorney Dennis Herrera sued CitiApartments in August of 2006, alleging that the Lembi-controlled properties could pay higher prices for apartment buildings due to its strategy of illegally driving out longterm tenants and then dramatically increasing rents. The city alleged that the Lembi’s even used armed security guards to “convince” tenants paying below-market rents that moving out was in their self-interest.
More
http://www.beyondchron.org/news/index.php?itemid=4282#more
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