Page Mill Properties' EPA operation raises rents, gets sued, implodes
The war between Page Mill Properties and its tenants in East Palo Alto hit two key turning points in September. First, a San Mateo County judge barred the Palo Alto-based property management firm from raising rents at its apartment complexes in East Palo Alto. Then, a week later, the company briefly abandoned the East Palo Alto apartments, leaving trash cans overflowing, fire alarms malfunctioning and residents wondering what to do with their rent checks.
When the dust settled, the situation looked bleak for the largest landlord in East Palo Alto. After months of raising rents (in some cases by more than 50 percent), suing East Palo Alto and lobbying San Mateo County officials to break off the Woodland Park neighborhood from the city's sphere of influence, the company found itself on the defensive and struggling to pay its bills.
By the second half of the year, the company that East Palo Alto officials had long accused of "predatory" tactics now found itself prey to the Great Recession. In August, Page Mill missed a $50 million payment to Wells Fargo Bank. A judge then upheld an injunction by tenants against Page Mill, barring the company from "collecting or enforcing any rent increases" at its properties.
The Palo Alto Police Department even got involved: It hired a private investigator to look into Page Mill's hiring of a Palo Alto officer to moonlight as its security consultant. That investigation is ongoing.
Page Mill's financial woes hit their climax in September, when the company was forced to cede control of its 1,700-plus units to a court-appointed receiver, Wald Realty Advisors.
Now, as the company's apartments slog toward foreclosure, tenants are anxiously waiting to see what will happen to the properties. Meanwhile, East Palo Alto officials and Wald Realty are contemplating a deal that would settle the ongoing lawsuits between Page Mill and the city and conclude the city's long and bitter battle over rent control.
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