In East Palo Alto, Wells Fargo has become the biggest landlord. There are no bids at the foreclosure auctions. The company took over 1.800 houses in the Woodland Park region of Palo Alto East. It has now officially become the biggest landlord of the city.
Previously the owner of the units was Page Mill Properties based in the city. The bank foreclosed on them. Last Tuesday 2nd March auction was held but no bidders turned up said a spokesperson of Wells Fargo, Elise Wilkinson. It led to Wells Fargo officially taking over ownership of the estates. The worth of the property has been valued by the bank to be $142 million.
The tenants have been very unhappy with Page Mill and it has been the same with the officials of the city. Page Mill had been again and again increasing the rent. Many have charged the company of “predatory equity” and have asked for reductions in rent. Page Mill has said that it had increased because it needed money to upgrade security systems, seismic retrofits and make other improvements on the properties.
Page Mill is also involved in over twelve legal suits with East Palo Alto regarding rent control of these units. The city officials hoped to settle the suits in the forthcoming weeks.
In last fall Page Mill lost its control over the properties after it lagged behind on $50 million ballooning payments to Wells Fargo. Last September the property managers of the firm left the building because the cash flow was not sufficient. A judge of San Mateo County then appointed an overseer to see to the running of the properties.
In a statement Wells Fargo said that it does not think that the results of the auction will have any noticeable impact on the residents of the building. The Investor’s Property Services would continue to manage the estate, said the bank.
Sean Barlas, the managing director of Wells Fargo said, “After speaking with many members of the East Palo Alto community and carefully weighing the options, we believe Wells Fargo’s acquisition of these properties will provide the best possible outcome for the residents and the community. In the short-term, we expect little or no impact to tenants at Woodland Park Apartments or the community.”
Leading the agitation against rent increases is lawyer Chris Lund who is a tenant. He said that then news about change of ownership of the property has come as a “sigh of relief” for all the renters.
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