AG sues SoCal real estate family, claims landlord exploits tenants

Attorney General Rob Bonta sued what he called operators of a “multi-billion dollar real estate empire” for allegedly renting out unsafe and uninhabitable units, discriminating against Section 8 recipients and engaging in deceptive leasing practices and unlawful rent increases. 

Swaranjit “Mike” Nijjar and other family members, the complaint alleges, profited off their business but left tenants to inhumane conditions such as collapsing ceilings, sewage overflows and roach and rodent infestations. 

The lawsuit comes after an almost three-year Department of Justice investigation into companies connected to the Nijjar clan. The complaint alleges the landlord family controls more than 22,000 units throughout Southern California, some in Los Angeles. 

“The companies owned by Mike Nijjar and his family are notorious for their rampant, slum-like conditions — some so bad that residents have suffered tragic results,” Bonta said in a statement. 

Nijjar’s attorney, Stephen Larson, denied the accusations. Still, Nijjar is no stranger to headlines or lawsuits. 

“Nijjar and his associates have treated lawsuit after lawsuit and code violation after code violation as the cost of doing business and have been allowed to operate and collect hundreds of millions of dollars each year from families who sleep, shower and feed their children in unhealthy and deplorable conditions,” Bonta later said. “Enough is enough.”

Tesla-occupied building trades hands for $21M

Maybe it’s the Musk name. 

A building occupied by a Tesla collision center sold for $21 million. Steiner Investments purchased the roughly 35,000-square-foot building at 18011 Mitchell South in Irvine from North Palisade Partners, for $592 per square foot. 

Tesla, helmed by Elon Musk, has a 10-year, corporate-guaranteed triple-net lease in place. Steiner was reportedly attracted to the property because of that lease.

“We received national and international buyer interest from every active investor class, including institutional, private high-net worth family offices, 1031 exchange groups and even non-traditional real estate investors within the automotive and green energy spaces, that were looking at alternative investments,” said SRS Capital Markets’ Pat Weibel.

More Costco in OC

Cult-favorite Costco is expanding its presence in Orange County. The company purchased two sites, one in Mission Viejo and the other in Lake Forest, in two separate deals to develop new Costco outposts.

Costco snapped up what was once a Bed Bath & Beyond at 25732 El Paseo in Mission Viejo for $14.4 million with plans to tear it down and construct a fueling station with 40 pumps next to the I-405. The fuel center would stretch more than 17,000 square feet and include an office for operations and a break room for employees. 

For its second act, the company picked up an obsolete Regal Cinema at Foothill Ranch Towne Center for $12.5 million. Costco plans to replace it with a 160,000-square-foot store that’ll hold a tire center.  

In the company’s latest earnings call, chief executive Ron Vachris said Costco anticipates opening 27 new warehouses, which includes three relocations, so that amounts to a total of 24 new buildings. By the end of the fiscal year, the mega-chain expects to have  914 warehouses throughout the world.

Idle commercial property turned affordable housing 

Southern California Affordable Housing plans to redevelop an abandoned commercial property in West Los Angeles to 100 percent affordable units. 

The nonprofit filed an application in late May with the Los Angeles Department of City Planning to turn the two-story building at 10808 West Santa Monica Boulevard into 279 studio and one-bedroom apartments, with all proposed units for moderate-, low- and very low-income residents. 

The project would include a number of addresses from 10808 Santa Monica Boulevard to 10830 Santa Monica Boulevard, plus four around the corner on Glendon Avenue. The property at 10830 Santa Monica would reportedly serve as a footprint on the corner. The building would have on-site parking for 23 vehicles. 

Because the building is set to consist entirely of affordable units, the project can utilize state density bonus laws and streamlined and expedited approvals under Executive Directive 1. 

Hockey takes office 

Anaheim Ducks owners acquired an office tower next to the team’s home rink. Henry and Susan Samueli reportedly paid $72.1 million for Stadium Tower, a 12-story office, more than 260,000 square foot building at 2400 East Katella Avenue.

The deal works out to about $275 per square foot. CBRE Investment Management and CalSTRS bought the tower for $63.9 million around eight years ago.

Tenants include New York Life Insurance, Edelman Financial Engines, PBK Architects and Czech & Howell. The tower is located between Angel Stadium and the Ducks’ Honda Center. 

The couple’s plans for Stadium Tower were not clear. But the purchase appears to be part of the Samuelis’ continuing expansion in the area via a $4 billion megadevelopment called OCVibe that plans for 100 acres of multifamily buildings, two hotels, a 50,000-square-foot food hall, two live event venues and office and retail spaces.

Less snacks in Rancho Cucamonga 

After more than half a century, Frito-Lay is ceasing manufacturing operations at its Rancho Cucamonga facility. While manufacturing at the Rancho Cucamonga site is ending, warehouse, distribution, fleet and transportation services will continue to operate out of the facility.  

Still, parent company PepsiCo may have eliminated hundreds of jobs as Frito-Lay is a major employer in the area since opening the factory in 1970. 

Located at 9535 Archibald Avenue, Frito-Lay’s Rancho Cucamonga site holds quite the place in the world of snack food creators. The factory once employed Richard Montañez, the janitor turned executive, is arguably credited with creating Flamin’ Hot Cheetos in 1991. The Rancho Cucamonga shutdown is the latest in a string of PepsiCo closures and cutbacks throughout the country. 

In February, the company announced it was closing a Frito-Lay plant in New York and laying off all its 287 workers; in May, the company laid off 56 employees at a storage warehouse in Maryland; and in October, PepsiCo closed four bottling plants in Chicago, Cincinnati, Atlanta and Harrisburg, eliminating 400 jobs. 

In a February earnings call, PepsiCo CEO Ramon Laguarta said the conglomerate was “right-sizing the cost” of its snacks division following a dropoff in Frito-Lay sales.