398:
the multi-unit apartments sold in the city as they became available. Critics claimed that the only reason CitiApartments could afford the premium was that it made more money on buildings than companies that operate within the limits of the law, or that it made unrealistically optimistic promises to its lenders about its ability to force rent-controlled tenants out of their apartments.
362:
residents." Among the city's claims are: intimidating tenants into leaving rent controlled units, unannounced visits by armed guards, illegally entering units, changing locks, shutting off utilities, retaliating against tenants who refused buy-outs, remodeling units without necessary permits or inspections, and illegally renting out residential units as hotel rooms and
88:
25:
347:
Founder Frank Lembi's son, Walter Lembi, was a significant owner until his death in 2010. Grandson Taylor Lembi also owns two apartment buildings and is part of the business. David Raynal, COO, is Frank Lembi's nephew. In various combinations and through affiliated companies they own the buildings
465:
On Oct. 29, 2009 the San
Francisco Chronicle published a story stating the Clark County, Nev., district attorney's office, has "a warrant out for Walter Lembi, managing director of the financially troubled Lembi Group, for allegedly passing $ 298,500 worth of bad checks earlier this year at Caesar's
427:. The company's lenders typically provided higher than usual loan reserves that would give CitiApartments sufficient money to make interest payments while also paying off or evicting existing tenants, based on a financial model by which it would replace at least 75% of the tenants within two years.
506:
CitiApartments through interviews and press releases categorically denied all claims, and rejected all criticism made against it with respect to violating its tenants rights. It described itself as an upstanding property manager, and claimed that any disputes with tenants were groundless, minor, or
515:
In
February 2020, Four real estate companies owned by San Francisco's largest landlord, the Lembi Group, filed a bankruptcy court in California for Chapter 11 protection. The companies are members of the CitiApartments Inc, Lembi Group's biggest shareholder of apartments in San Francisco. The four
397:
CitiApartments often paid as much as 50% more for a building than its value to the rest of the market, and as a result may have raised overall market prices by 5-10%. This drove away competition from weaker and more cash-sensitive property investors. Starting in late 2006 it bought nearly all of
190:, which at its peak owned and managed more than 300 buildings directly and through a number of affiliates. In recent years the companies suffered a financial downturn, and have been the subject of intense criticism and litigation for allegedly illegal business practices as a residential landlord.
361:
On August 16, 2006, the Office of the City
Attorney of San Francisco filed a lawsuit against CitiApartments and related companies and individuals claiming an "egregious pattern of illegal business practices" that amounted to a "panoply of lawlessness, intimidation tactics, retaliation against
388:
suit, by former tenants alleging a deliberate pattern of illegally withholding and delaying return of rental deposits. CitiApartments was sanctioned more than $ 30,000 in one instance, and $ 50,000 in another, for what a judge described as "willful" failure to comply with document discovery
257:
Frank Lembi, originally a pharmacist, became a real estate broker after returning from military service in 1946. Shortly after, he formed
Skyline Realty as a brokerage. He bought the business outright upon his business partner's death in 1968. Lembi's empire today includes:
418:
as low as 5% of the total purchase price (as opposed to 30-40%, which is more common for comparable commercial real estate purchases). Because of the high prices paid for buildings, and the high amount financed, the buildings have negative
369:
In April, 2006, 23 tenants filed a private lawsuit against the companies. Among the claims are intimidation of tenants by armed guards, harassment and threats, coercive interrogation sessions to pressure tenants into signing agreements,
502:
and causes, and provided one nearly free studio apartment to a needy family. It disseminated numerous press releases on the subject since the inception of the lawsuits and adopted the slogan "Restoring San
Francisco's Neighborhoods."
435:, which would have a ripple effect that depresses commercial real estate throughout San Francisco. Such predictions came to pass in January, 2009, when the parent company had to assign 51 of its (then) 307 properties to one lender,
458:. As of that time the company was attempting to renegotiate approximately $ 1 billion in loans, and in possible default on another $ 164 million loan. By the summer of 2009 the company had transferred 51 properties to one lender
430:
Critics long complained that in the event of a market downturn or other unexpected event, CitiApartments was in danger of defaulting on its mortgages and would have to sell them at distressed prices or in
377:
In addition there have been numerous lawsuits against the companies on behalf of individual plaintiffs. One of which was handled by San
Francisco landlord/tenant attorney Drexel Bradshaw of
539:
977:
374:
intended to harass tenants, and tenant lockouts, all intended to force below-market rent controlled tenants to leave so the company could renovate and re-rent at a higher rate.
446:(which hurt the effectiveness of its strategy of replacing existing rent-control tenants by attrition and eviction), inability to renew or refinance existing loans due to the
972:
987:
306:. Because most of the city's housing stock comprises smaller buildings, with only several large complexes, the company achieved a dominant position within its market.
450:, and a resulting decrease in value and saleability of commercial properties that made it impossible to re-sell buildings to avoid foreclosure. Given the high
982:
876:
282:
Beginning in the early 1990s
Skyline Realty shifted its focus from brokering real estate to buying and managing apartments. CitiApartments has taken a
967:
486:
of the 1980s. Frank's son Walter was
President starting in 1982 or 1983. He and son Walter were named in numerous lawsuits related to that company.
905:
543:
801:"For San Francisco Landlord, Bell Tolls on a Debt-Heavy Plan:Bets on Rent-Regulated Properties Sour As Market Seizes Up, and Lenders Shiver"
381:, who sued CitiApartments under the RICO statute of 1970. The fraudulent use of the telephone and U.S. mail is cause for RICO prosecution.
548:
221:
units housing more than 7,000 residents, making it the second-largest owner of residential rental property in San
Francisco at the time.
447:
67:
384:
In July, 2009 several additional lawsuits were filed against CitiApartments Inc. and at least 56 related entities, including one
321:
without cause, CitiApartments could not immediately profit from building upgrades. Instead, it took a longer-term approach by:
49:
631:
45:
Sections need placed in correct order. Also extensive controversy section which needs checked for NPOV and editing per NOCRIT.
295:
210:
Frank Lembi and various members of his family. Among the most prominent of these are Trophy
Properties and Ritz Apartments.
815:
737:
594:
479:
147:
Frank Lembi, Founder and Chairman; Walter Lembi (deceased); David Raynal, managing partner and Chief Operating Officer;
40:
459:
439:, in lieu of foreclosure, because they collectively had a negative cash flow of approximately $ 3 million per month.
774:
752:
561:
616:
299:
203:
187:
335:
Re-renting upgraded units at much higher market rates, or as high-rent furnished corporate suites or hotel rooms
657:
595:"The Sky's the Limit: Frank Lembi owns rental units galore in SF and he and his family are shopping for more"
483:
942:
738:"Yahoo calls for policy on Web censorship / Portal -- under fire for helping China -- preps for hearing"
722:
679:
443:
442:
In 2009 the Lembi Group was in financial distress due to a combination of softening rents due to the
371:
363:
35:
241:
214:
950:
451:
291:
233:
855:
516:
companies put 16 residential assets together, which became leverage for a $ 132.4 million loan.
946:
498:'s older housing stock, CitiApartments had co-hosted various housing-related and low-income
475:
407:
455:
237:
229:
225:
168:
700:
961:
495:
424:
800:
454:
and the group's having initially paid above-market prices, many of their loans were
635:
415:
385:
310:
283:
207:
87:
775:"CIM Group goes for Lembi buildings; 23 rental properties at risk of foreclosure"
929:
432:
287:
183:
923:
917:
199:
499:
420:
411:
218:
834:
314:
303:
318:
202:
of Skyline Realty, Inc., and also operates buildings owned by various
436:
326:
935:
723:"City Insider : Judge sanctions CitiApartments in city lawsuit"
482:
to prevent insolvency due to bad high-risk real estate loans in the
378:
313:
laws, which prohibit all but very modest rent increases and prevent
263:
540:"Lawsuit alleges CitiApartments drained tenant deposit accounts"
213:
As of 2006 and 2007 CitiApartments and its affiliates owned 307
474:
Frank Lembi was Chairman of Continental Savings of America, a
18:
914:- informational website for tenants opposed to CitiApartments
462:, and was in foreclosure proceedings on more than 60 others.
267:
406:
CitiApartments and its sister companies bought buildings on
271:
259:
911:
680:"Outraged Tenants And Housing Coalition Picket Landlords"
701:"Economic Cleansing: Tenants Bite Huge SF Landlord Back"
332:
Waiting until tenants left before renovating their units
294:
purchases of mid-sized older buildings in nearly every
877:"Four CitiApartments affiliates file for bankruptcy"
167:
159:
151:
141:
126:
118:
110:
102:
94:
634:. City and County of San Francisco. Archived from
507:normal and incidental for a landlord of its size.
753:"CitiApartments fattens up S.F. rental portfolio"
816:"Real estate leader's name on bad-check warrant"
8:
978:Privately held companies based in California
80:
973:Real estate companies of the United States
918:The Scumlords: Skyline Realty's goon squad
908:- contains text of San Francisco complaint
630:Office of the City Attorney (2006-08-16).
494:To promote its position as a caretaker of
86:
79:
988:1940s establishments in the United States
588:
586:
584:
582:
580:
578:
533:
531:
529:
68:Learn how and when to remove this message
542:. San Francisco Examiner. Archived from
262:(created to substitute CitiApartments),
856:"CitiApartments denies lawsuit charges"
525:
478:institution that was taken over by the
947:"No Scarcity of Tenant Horror Stories"
794:
792:
790:
788:
786:
784:
562:"Rental giant boosts size, draws fire"
329:and incentives for tenants to relocate
7:
932:- part 3/3 of SF Bay Guardian series
924:The Scumlords: Neglect and disrepair
920:- part 1/3 of SF Bay Guardian series
338:Cutting building management expenses
206:, all of which are in turn owned by
658:"Tenants allege strong-arm tactics"
983:1940s establishments in California
14:
926:- part 2/3 of Bay Guardian series
968:Companies based in San Francisco
217:with a total of more than 6,500
194:Corporate structure and holdings
23:
777:. San Francisco Business Times.
678:McMillan, Dennis (2006-05-04).
379:Bradshaw & Associates, P.C.
298:of San Francisco but mostly in
936:Bradshaw & Associates, P.C
930:The Scumlords: Family business
814:Ross, Andrew S. (2009-10-29).
755:. San Francisco Business Times
564:. San Francisco Business Times
309:Due to San Francisco's strict
1:
736:Andrew S. Ross (2010-04-01).
632:"Skyline/CitiApartments Sued"
448:Financial crisis of 2007–2010
799:Jonathan Karp (2009-01-28).
656:Lagos, Marisa (2006-04-28).
615:Andrew S Ross (2010-08-18).
480:Office of Thrift Supervision
278:Recent business developments
16:American real estate company
820:The San Francisco Chronicle
593:Lloyd, Carol (2005-04-01).
348:managed by CitiApartments.
204:limited liability companies
155:apartment owner and manager
130:San Francisco, California,
43:. The specific problem is:
1004:
773:J.K. Dineen (2009-03-29).
619:. San Francisco Chronicle.
198:CitiApartments, Inc. is a
98:privately held corporation
39:to meet Knowledge (XXG)'s
854:Akers, Rob (2006-06-01).
751:Dineen, JK (2006-12-15).
682:. San Francisco Bay Times
660:. San Francisco Chronicle
597:. San Francisco Chronicle
560:Dineen, JK (2006-06-23).
538:John Upton (2009-07-31).
423:and cannot support their
188:San Francisco, California
85:
953:: The Voice of the Rest.
938:- San Francisco Attorney
721:John Coté (2010-02-03).
912:Citistop Tenants' Union
703:. Daily Kos. 2006-04-28
490:CitiApartments response
484:savings and loan crisis
393:Eliminating competition
182:was one of the largest
803:. Wall Street Journal.
466:Palace in Las Vegas."
460:in lieu of foreclosure
943:Avicolli-Mecca, Tommi
234:real estate brokerage
444:late 2000s recession
372:illegal construction
173:Skyline Realty, Inc.
81:CitiApartments, Inc.
50:improve this article
858:. Bay Area Reporter
617:"Walter Lembi dies"
242:property management
224:It also owned five
215:apartment buildings
82:
883:. 10 February 2020
470:Past controversies
452:financial leverage
264:Personality Hotels
238:mortgage brokerage
343:A family business
317:from terminating
290:, making heavily
177:
176:
163:$ 80 million / yr
132:San Francisco, CA
78:
77:
70:
41:quality standards
32:This article may
995:
954:
945:(May 14, 2008).
893:
892:
890:
888:
873:
867:
866:
864:
863:
851:
845:
844:
842:
841:
833:CitiApartments.
830:
824:
823:
811:
805:
804:
796:
779:
778:
770:
764:
763:
761:
760:
748:
742:
741:
733:
727:
726:
718:
712:
711:
709:
708:
697:
691:
690:
688:
687:
675:
669:
668:
666:
665:
653:
647:
646:
644:
643:
627:
621:
620:
612:
606:
605:
603:
602:
590:
573:
572:
570:
569:
557:
551:
547:
535:
476:savings and loan
364:executive suites
286:approach to its
230:office buildings
90:
83:
73:
66:
62:
59:
53:
27:
26:
19:
1003:
1002:
998:
997:
996:
994:
993:
992:
958:
957:
941:
902:
897:
896:
886:
884:
875:
874:
870:
861:
859:
853:
852:
848:
839:
837:
832:
831:
827:
813:
812:
808:
798:
797:
782:
772:
771:
767:
758:
756:
750:
749:
745:
735:
734:
730:
720:
719:
715:
706:
704:
699:
698:
694:
685:
683:
677:
676:
672:
663:
661:
655:
654:
650:
641:
639:
629:
628:
624:
614:
613:
609:
600:
598:
592:
591:
576:
567:
565:
559:
558:
554:
537:
536:
527:
522:
513:
492:
472:
404:
395:
359:
354:
345:
280:
260:FirstApartments
255:
250:
226:boutique hotels
196:
144:
137:
133:
74:
63:
57:
54:
47:
28:
24:
17:
12:
11:
5:
1001:
999:
991:
990:
985:
980:
975:
970:
960:
959:
956:
955:
939:
933:
927:
921:
915:
909:
901:
900:External links
898:
895:
894:
868:
846:
825:
806:
780:
765:
743:
728:
713:
692:
670:
648:
622:
607:
574:
552:
546:on 2022-07-04.
524:
523:
521:
518:
512:
509:
491:
488:
471:
468:
403:
402:Shaky finances
400:
394:
391:
358:
355:
353:
350:
344:
341:
340:
339:
336:
333:
330:
300:the Tenderloin
279:
276:
254:
251:
249:
246:
195:
192:
180:CitiApartments
175:
174:
171:
165:
164:
161:
157:
156:
153:
149:
148:
145:
142:
139:
138:
135:
131:
128:
124:
123:
120:
116:
115:
112:
108:
107:
104:
100:
99:
96:
92:
91:
76:
75:
31:
29:
22:
15:
13:
10:
9:
6:
4:
3:
2:
1000:
989:
986:
984:
981:
979:
976:
974:
971:
969:
966:
965:
963:
952:
948:
944:
940:
937:
934:
931:
928:
925:
922:
919:
916:
913:
910:
907:
904:
903:
899:
882:
878:
872:
869:
857:
850:
847:
836:
835:"Press-Media"
829:
826:
821:
817:
810:
807:
802:
795:
793:
791:
789:
787:
785:
781:
776:
769:
766:
754:
747:
744:
740:. SFGate.com.
739:
732:
729:
725:. SFGate.com.
724:
717:
714:
702:
696:
693:
681:
674:
671:
659:
652:
649:
638:on 2009-10-31
637:
633:
626:
623:
618:
611:
608:
596:
589:
587:
585:
583:
581:
579:
575:
563:
556:
553:
550:
545:
541:
534:
532:
530:
526:
519:
517:
510:
508:
504:
501:
497:
496:San Francisco
489:
487:
485:
481:
477:
469:
467:
463:
461:
457:
453:
449:
445:
440:
438:
434:
428:
426:
422:
417:
416:down payments
413:
410:from outside
409:
401:
399:
392:
390:
387:
382:
380:
375:
373:
367:
365:
356:
351:
349:
342:
337:
334:
331:
328:
324:
323:
322:
320:
316:
312:
307:
305:
301:
297:
293:
289:
285:
277:
275:
273:
269:
265:
261:
252:
247:
245:
243:
239:
235:
231:
227:
222:
220:
216:
211:
209:
205:
201:
193:
191:
189:
186:companies in
185:
181:
172:
170:
166:
162:
158:
154:
150:
146:
140:
129:
125:
121:
117:
113:
109:
105:
101:
97:
93:
89:
84:
72:
69:
61:
51:
46:
42:
38:
37:
30:
21:
20:
951:Beyond Chron
885:. Retrieved
880:
871:
860:. Retrieved
849:
838:. Retrieved
828:
819:
809:
768:
757:. Retrieved
746:
731:
716:
705:. Retrieved
695:
684:. Retrieved
673:
662:. Retrieved
651:
640:. Retrieved
636:the original
625:
610:
599:. Retrieved
566:. Retrieved
555:
544:the original
514:
505:
493:
473:
464:
441:
429:
405:
396:
386:class action
383:
376:
368:
360:
346:
311:rent control
308:
296:neighborhood
284:buy and hold
281:
256:
223:
212:
197:
179:
178:
127:Headquarters
95:Company type
64:
58:January 2024
55:
48:Please help
44:
33:
433:foreclosure
352:Controversy
288:investments
184:real estate
122:Frank Lembi
106:real estate
52:if you can.
962:Categories
862:2007-06-02
840:2007-06-02
759:2007-06-02
707:2007-06-02
686:2007-06-02
664:2007-06-02
642:2007-06-02
601:2007-06-02
568:2007-06-02
520:References
511:Bankruptcy
456:underwater
389:requests.
272:Hotel Diva
268:CitiSuites
200:subsidiary
143:Key people
906:press kit
500:charities
421:cash flow
412:investors
325:Offering
319:tenancies
315:landlords
292:leveraged
219:apartment
425:mortgage
357:Lawsuits
304:Nob Hill
240:, and a
152:Services
103:Industry
34:require
887:24 June
881:reuters
549:Alt URL
414:, with
327:buyouts
253:Origins
248:History
208:founder
160:Revenue
119:Founder
111:Founded
36:cleanup
437:UBS AG
408:credit
244:firm.
228:, two
169:Parent
114:1940s
889:2020
302:and
236:, a
232:, a
136:USA
964::
949:.
879:.
818:.
783:^
577:^
528:^
366:.
274:.
270:,
266:,
134:,
891:.
865:.
843:.
822:.
762:.
710:.
689:.
667:.
645:.
604:.
571:.
71:)
65:(
60:)
56:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
