Intersection of international finance and organized crime

San Francisco Bank: “Not-so-smart” CRE Loans

When smart money said “no more,” not-so-smart Marin bank loaned the Lembis $41 million.

War of values:

“The Lembis were primarily interested in properties built before 1979: In other words, buildings covered by rent control. The reason is spelled out in a confidential document prepared by the investment bank Credit Suisse in winter 2008. The document focuses on the group of 24 properties that included the Carlomagno buildings. It shows, unit by unit, how the Lembis planned to replace 85 percent of the tenants. The family had set aside $9 million for “relocation costs,” and another $13 million for renovations. Once the apartments were fixed up, the document states, CitiApartments planned to raise rents by an average of 59 percent.”

The third link above describes the methods used to get renters out…harassment.

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1 Comment »

  1. […] See the rest here:  Intersection of international finance and organized crime […]

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