“Uncovering the Truth: Exploring Environmental Impact, Public Health, and Corporate Ethics”

Unveiling the Connection: JRK Property Holdings Inc., JRK Residential Group Inc, Two Coast Living, and Their Link to Arbors at California Oaks

JRK Property Holdings, Inc., a significant player in the real estate investment sector, was established in 1991 by Jim Lippman, the Chairman and Chief Executive Officer. This privately owned company, headquartered in Los Angeles, CA, boasts a vast portfolio of over $15 billion in multifamily and hotel assets across 30 states, encompassing more than 80,000 units. One of their notable assets is the Arbors at California Oaks, managed by Two Coast Living, located in Los Angeles, CA.

JRK Property Holdings Inc., JRK Residential Group Inc., and Two Coast Living share the same contact phone and address.

The Arbors at California Oaks use deceptive marketing material to attract tenants using phrases like “luxury” and “resort-style.” According to its website, its units are “freshly renovated”… and “feature contemporary finishes, eye-catching kitchens, and spacious living areas, making [tenants’] apartments truly feel like home. The site goes on to state, “[our] apartment complex features resort-style amenities and a central location to make living feel like [a] luxury.” However, previous residents’ online reviews and current tenants’ first-hand accounts suggest otherwise.

A simple online search will render countless 1-star Google and Yelp reviews riddled with allegations suggesting the property is inhabitable. Current tenants describe living conditions as infested with pests and rodents, hazardous property grounds riddled with dog feces, exposed electric wires, stagnant water, and overran dumpsters. Numerous safety concerns like theft of property, loitering, and homeless people living in the onsite laundromat.

“The properties will talk to you and tell you what they actually need.” 

Jim Lippman, JRK Holdings Founder, Chairman & CEO

In an interview from a post on JRK Holdings Property website, Lippman said, “The properties will talk to you and tell you what they actually need.”  However, tenants are gaslit when they inform the property management about these issues. When they call the property owner’s corporate office, they are repeatedly hung up on, resulting in their calls not being answered.

Arbor Residents submit countless code violations, hoping that their problems would be taken seriously and that someone would come to their aid; however, the most that has been done is several visits from Murrieta Code Enforcement and false hope.

The property owner seems to have a history of expecting its tenants to live in these conditions because the exact allegations were filed in a lawsuit brought against Arbors at California Oaks. The case, Kelley Peviani et al., Plaintiffs and Appellants, v. Arbors at Cal. Oaks Prop. Owner, LLC, the plaintiffs, Peviana and Appellants, accused Arbors at California Oaks and JRK Residential Group Inc., collectively defendants, of false advertising, breach of the implied warranty of habitability, nuisance, breach of the implied covenant of good faith and fair dealing, bad faith retention of security deposits, and unfair competition. The defendants won the case, but the ruling was later appealed, and the appellants were awarded the cost upon appeal.

Residents also raised concerns about emails from the property manager threatening eviction, excessive rate increases, and hidden fees. Tenants allege that the property manager sends emails threatening eviction every month when they are three days late, telling them they have the right to refuse their money. However, according to the Judicial Branch of California, California Courts Self-Help Guide:

The eviction process starts with your landlord giving you a Notice to do or pay something, or to move out. If you don’t do what your landlord asks, they can start an eviction case to ask the judge to order you to move out.

After the landlord gives you the Notice it can take 30-45 days, or longer, for the eviction case to end. If you lose the case, the judge can order you to move out of your home.

JRK Residential Group Inc., based in Nevada, was involved in a lawsuit with similar allegations about eviction. Washington State Attorney Bob Ferguson filed the Pierce County Superior Court lawsuit on behalf of at least fourteen residents of The Boulders at Puget Sound for violating Governor Inslee’s Emergency “Evictions” Proclamation. According to the Washington State Office of Attorney General’s webpage, the lawsuit asserts that residents discovered the hard copy notices at their front doors.

A proposed class action lawsuit with similar allegations about an excessive rent increase was filed against JRK Residential Group Inc. on behalf of California Tenants in December 2020. It alleges that JRK Property Holdings Inc. and JRK Residential Group Inc. illegally increased rent and charged late fees and renter’s insurance fines. Arbors at California Oaks is one of the properties named in the proposed filing.

Despite the numerous allegations, Abor’s website still proclaims its “mission is to make home synonymous with luxury.” While Jim Lippman is viewed as an apartment whisper, according to a 2015 post titled, JRK Property Holdings’ CEO Jim Lippman Featured In Multifamily Executive. The real estate investor says, “One of the best ways to heal an underperforming multifamily property is to visit the asset, just stand there—and listen.” 

“One of the best ways to heal an underperforming multifamily property is to visit the asset, just stand there—and listen.”

Jim Lippman, JRK Holdings Founder, Chairman & CEO

Lippman’s comment shows that he is out of touch with his tenants and the reality they are forced to endure, viewing them as simply “assets.” His company believes that a “fresh coat of paint” and a “nice curb appeal” are the way to reel in tenants. This intentionally deceptive marketing tactic provides insight into the company’s culture, ethics, and morals. 

“Curb appeal is still one of our first focus areas,” says executive vice president John McKee. “I don’t care who you are—first impressions drive decisions: nice clubhouse, nice staff, fresh paint and signage, flowers. It’s not magic.”

“I don’t care who you are —first impressions drive decisions…..It’s not magic.”

John McKee, Vice President Executive

This shows that the property’s management mislead future tenants while requiring current residents to provide a 60-day notice to break their leasing agreements despite being duped. Many residents cannot pay two leases within the last 30 days of their agreement, leaving them in a lose-lose situation.

Although this is unfortunate, Mckee is correct; it is “not magic.” It is simply lies that have lasting impacts. 

JRK Holdings Property Inc. was contacted for comment but has not responded. We could not verify whether John Mckee is currently JRK Holdings’s Property vice president.

https://www.arborsatcaliforniaoaks.com/Apartments/module/amenities/property%5Bid%5D/218059/ https://www.atg.wa.gov/news/news-releases/first-lawsuit-enforcing-governor-s-emergency-proclamation-results-property https://www.atg.wa.gov/news/news-releases/first-lawsuit-enforcing-governor-s-emergency-proclamation-results-property https://casetext.com/case/peviani-v-arbors-at-cal-oaks-prop-owner-llc
JRK Property Holdings’ CEO Jim Lippman featured in Multifamily Executive


Comments

Leave a comment

Design a site like this with WordPress.com
Get started