Enjoy an Ads-Free ASFN - lighter and faster too! Become an ASFN-Contributor and help support the site.
Go Back   Arizona Sports Fans Network > Other Stuff > Politics and Religion

Reply
 
Thread Tools Display Modes
 
Old March 6th, 2009, 10:41 AM   #1
Folster
The system doesn't work.
 
Folster's Avatar
 

Join Date: Jun 2005
Posts: 4,805

My apartment complex is hit hard by recession


http://www.azcentral.com/business/ar...ments0303.html
Quote:
Cash woes hit one of Valley's largest apartment investors

Lenders begin takeover of 13 Valley complexes, employees say

26 comments by Edythe Jensen - Mar. 3, 2009 12:00 AM
The Arizona Republic
The financial woes of Bethany Group, one of the Valley's largest apartment investors, have left several large complexes with overflowing trash bins, threats of utility shutoffs and employees who haven't been paid for weeks.
Property managers in Phoenix, Chandler and Glendale said lenders have started taking over operations of 13 Bethany Group-owned complexes across the Valley.
"We haven't been paid for weeks. Everyone in the (Irvine, Calif.) corporate office was fired Friday afternoon; we're just waiting for the bank to come and take over," said Robin Enderton, manager for the Crosswinds, a 376-unit complex in Chandler. "But I am so proud of our staff. The maintenance supervisor hasn't been paid for four weeks and he was here at 4 a.m. cleaning up human feces from a mainline (sewer) backup."
Cameo Dawn, manager of the 480-unit Coves at Newport in Glendale, said, "We're all basically working as volunteers." She said she has had to deal with looming electricity and water shutoffs. "January 30 was the last day we were paid, and we were told our health benefits stopped March 1."
Mesa spokesman Steve Wright said Bethany Group-owned Tuscany Palms in Mesa owes about $30,000 in past-due water bill payments but no shutoff notices have been sent to tenants.
Bethany Group CEO Greg Garmon in Irvine did not return phone messages. Laura Smith, a Phoenix-based regional vice president for Bethany Group and one of the corporate employees who were fired Friday, said all the Valley apartments have gone into receivership. A court-appointed receiver will handle day-to-day operations. Receivership is sometimes followed by foreclosure if a new arrangement can't be negotiated.
She said employees are frightened but the apartments will continue to operate under receivership and tenants won't be forced to move.
"Everyone's scared to death, but residents will be just fine. The real story is how hard employees are working and how much blood, sweat and tears they're putting into this. I've been in the business for 22 years and have never seen such dedicated employees," Smith said.
Benjamin Graham, a maintenance supervisor at Granite Bay apartments in Phoenix, said his crew is working without pay and worried but doing what they can to repair and clean apartments for new residents. Thomas Bade, a commercial real estate agent who negotiated one of the sales to Bethany Group two years ago and is familiar with the others, said the deals made up one of the largest portfolios in state history at a time when real estate prices - and apartment rents - were at their peak.
In 2007, Bethany Group acquired 12 properties for $428 million, paying about $82,500 for each apartment unit. They're worth much less in today's market, he said.
Falling realty values, competition from single-family home rentals and higher vacancies in complexes that catered to illegal immigrants likely contributed to Bethany Group's problems, Bade said.
I live in the Coves at Newport Landing in Glendale, managed by Bethany Group. Management used to be solid. Landscaping and maintenance was daily and the the common grounds were always clean and in order. There was even roving parking lot security.

I figured something was wrong in the fall when landscaping didn't seed the winter rye. Landscaping and maintenance has been gradually declining to the point where, the pool is green, dead leaves are everywhere, the grass is dead, weeds are knee high, and light fixtures are busted. A month ago, every resident received a notice that water was going to be shut off due to non-payment (water services are included in rent). Rivals complexes have caught wind and have been soliciting residents with specials for our complex.

Our lease expires in October 2009, so we might be stuck here for a while unless they violate the landlord/tenant act. In my mind they have already by not keeping up the complex (we pay for a clean well-kept complex that it used to be). We'll probably talk to one of the rival complexes. I'm sure they would be more than happy to inform us of what are rights are. There is supposedly an informational meeting Sunday morning at my complex, so we shall see.
Enjoy an Ads-Free ASFN - lighter and faster too! Become an ASFN-Contributor and help support the site.

Last edited by Folster; March 6th, 2009 at 10:47 AM.
Folster is offline   Reply With Quote
Old March 6th, 2009, 11:03 AM   #2
Avondale Red Rage
Just wondering...
 
Avondale Red Rage's Avatar
 

Join Date: Dec 2004
Location: Avondale, AZ
Posts: 500
I'm guessing since they stopped paying the service providers (landscape, pool, etc.) they reduced your rent-right?
__________________
"This singular game, which is so costly and so ruinous, and so silly, is called statesmanship---which is different from assmanship on account of the spelling.' - Mark Twain
Avondale Red Rage is offline   Reply With Quote
Old March 6th, 2009, 11:41 AM   #3
Divide Et Impera
Banned
 
Divide Et Impera's Avatar
 

Join Date: Apr 2003
Location: Maricopa, AZ
Posts: 14,363
You're probably right that they have already violated your contract. Be careful with other complexes, though. This is not an isolated problem. You might want to do some deep research into the solvency of the ownership group of any potential complexes. Right now, it sucks to be a homeowner and it sucks to be a renter - apartment or house. Shantytowns II is coming around the corner....
Divide Et Impera is offline   Reply With Quote
Old March 6th, 2009, 12:04 PM   #4
Gaddabout
Plucky Comic Relief
 
Gaddabout's Avatar
 

Join Date: Jul 2004
Location: Gilbert
Posts: 15,998
Blog Entries: 5
I would call the State Department of Real Estate and ask for the Landlord/Tenant hotline. Seek advice to see if there's a way out now. Better to move now than to wait for the thing to collapse.
__________________
Quote:
Originally Posted by Mulli View Post
People just need something to complain about.
Gaddabout is offline   Reply With Quote
Old March 6th, 2009, 12:28 PM   #5
ajcardfan
I see you.
 
ajcardfan's Avatar
 

Join Date: May 2002
Posts: 20,076
Quote:
Originally Posted by Divide Et Impera View Post
Right now, it sucks to be a homeowner and it sucks to be a renter - apartment or house. Shantytowns II is coming around the corner....
I don't know. I still like having a house.
__________________
We live in a world which is full of misery and ignorance, and the plain duty of each and all of us is to try to make the little corner he can influence somewhat less miserable and somewhat less ignorant than it was before he entered it.

T.H. Huxley
ajcardfan is offline   Reply With Quote
Old March 6th, 2009, 12:35 PM   #6
Divide Et Impera
Banned
 
Divide Et Impera's Avatar
 

Join Date: Apr 2003
Location: Maricopa, AZ
Posts: 14,363
I should condition that. If you are in a buying position to purchase a primary residence, this is a good spot. If you are an investor or you are in a home you have owned for more than a year or if you are in a position where you need to sell your home and you have a note on it, it's a sucky place to be....
Divide Et Impera is offline   Reply With Quote
Old March 6th, 2009, 06:28 PM   #7
40yearfan
DEFENSE!!!!
 
40yearfan's Avatar
 

Join Date: Feb 2003
Location: Phoenix, AZ.
Posts: 32,159
Quote:
Originally Posted by Divide Et Impera View Post
I should condition that. If you are in a buying position to purchase a primary residence, this is a good spot. If you are an investor or you are in a home you have owned for more than a year or if you are in a position where you need to sell your home and you have a note on it, it's a sucky place to be....
If you have a second home and you can possibly hang onto it, do so. Rent it out.

When this thing turns around again, property values will be the first thing to go back up. If you can hang on for a year or two, you might get your money back. If you can hang onto it for 4 or 5 years, you'll make a tidy little profit. Hopefully, that is. :crossesfingers:
__________________
Old age isn't so bad when you consider the alternative.
40yearfan is offline   Reply With Quote
Old March 6th, 2009, 06:31 PM   #8
LVG
Who?!
 
LVG's Avatar
 

Join Date: Oct 2005
Location: Vegas, baby, yeah!
Posts: 12,396
Quote:
Originally Posted by 40yearfan View Post
If you have a second home and you can possibly hang onto it, do so. Rent it out.

When this thing turns around again, property values will be the first thing to go back up. If you can hang on for a year or two, you might get your money back. If you can hang onto it for 4 or 5 years, you'll make a tidy little profit. Hopefully, that is. :crossesfingers:
I hope you're right, 40. I think this is going to go on for another 3 years. Property prices to recover in 7-9.
__________________
RISE UP DARK SIDE

"The problem with quotes on the Internet is that it is often difficult to verify their authenticity." - Abraham Lincoln

"I fear the day people post memes on the internet with quotes I've never said." ~Albert Einstein
LVG is offline   Reply With Quote
Old March 6th, 2009, 07:52 PM   #9
Divide Et Impera
Banned
 
Divide Et Impera's Avatar
 

Join Date: Apr 2003
Location: Maricopa, AZ
Posts: 14,363
Divide Et Impera is offline   Reply With Quote
Old March 7th, 2009, 03:50 AM   #10
Southpaw
Provocateur aka Wallyburger
 
Southpaw's Avatar
 

Join Date: Nov 2003
Location: via pacis
Posts: 29,161
Blog Entries: 5
Maybe the renters can organize and treat the place like a commune. Pool their resources and self maintain. I really believe that the good old days are gone. No one will take care of you but yourself. Novel idea, but the caretakers are the first "luxury" to go.
__________________
"It doesn't make a damned bit of difference who wins the war to someone who's dead."
Southpaw is offline   Reply With Quote
Old March 7th, 2009, 07:06 AM   #11
Brian in Mesa
BIM
 
Brian in Mesa's Avatar
 
Tetris Champion!
Join Date: May 2002
Location: The Dark Side
Posts: 42,314
Send a message via MSN to Brian in Mesa Send a message via Yahoo to Brian in Mesa
Quote:
Originally Posted by Divide Et Impera View Post
I should condition that. If you are in a buying position to purchase a primary residence, this is a good spot. If you are an investor or you are in a home you have owned for more than a year or if you are in a position where you need to sell your home and you have a note on it, it's a sucky place to be....


Why would that suck?
__________________
HONEY BADGER DON'T CARE
Brian in Mesa is offline   Reply With Quote
Old March 7th, 2009, 08:52 AM   #12
nidan
RIP George
 
nidan's Avatar
 

Join Date: May 2002
Location: Scottsdale
Posts: 21,215
Folster in a commune, whats next ... Russ agreeing GW is real
__________________

DogTv
nidan is offline   Reply With Quote
Old March 7th, 2009, 10:26 AM   #13
bankybruce
I see dead people!!
 
bankybruce's Avatar
 

Join Date: Mar 2003
Location: Portland, OR
Posts: 11,939
If you are going to rent, rent a house through a property management company. You have a lease with them not the home owner, so if the home owner gets foreclosed, the property management was the one holding your deposits and will refund them the moment the house is foreclosed on. Happened to the wife and I and was very easy to deal with. The only that sucked was we only had 30 days to get out once we got the notice from the bank. Not loosing $2000 made it worth it. We have since purchased a house that is the same size and cheaper than renting.
__________________
"That kid is back on the escalator"
Brodie Bruce, Mallrats
"What's a nubian" Banky Edwards, Chasing Amy
bankybruce is offline   Reply With Quote
Old March 7th, 2009, 05:38 PM   #14
40yearfan
DEFENSE!!!!
 
40yearfan's Avatar
 

Join Date: Feb 2003
Location: Phoenix, AZ.
Posts: 32,159
Quote:
Originally Posted by bankybruce View Post
If you are going to rent, rent a house through a property management company. You have a lease with them not the home owner, so if the home owner gets foreclosed, the property management was the one holding your deposits and will refund them the moment the house is foreclosed on. Happened to the wife and I and was very easy to deal with. The only that sucked was we only had 30 days to get out once we got the notice from the bank. Not loosing $2000 made it worth it. We have since purchased a house that is the same size and cheaper than renting.
Good going bb. If anyone is contemplating buying a home, the pricing will never get much better than it is right now. If you have the means and you are willing to look hard and do some fix-up, there are teriffic bargains out there.

Sure beats putting your money in the stock market.
__________________
Old age isn't so bad when you consider the alternative.
40yearfan is offline   Reply With Quote
Old March 7th, 2009, 06:13 PM   #15
Divide Et Impera
Banned
 
Divide Et Impera's Avatar
 

Join Date: Apr 2003
Location: Maricopa, AZ
Posts: 14,363
Quote:
Originally Posted by Brian in Mesa View Post


Why would that suck?
Because if you bought at that point or before in the market, you are seriously underwater right now....
Divide Et Impera is offline   Reply With Quote
 
Reply

Tags
apartment, recession



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Sitemap:1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39


All times are GMT -8. The time now is 08:43 AM.



Subscribe in a reader
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
vBCredits v1.4 Copyright ©2007 - 2008, PixelFX Studios
Inactive Reminders By Icora Web Design