06/02/08 10:40am

Open House at Candlewood Glen Apartments, Houston

Chronicle reporter Matt Stiles continues his tour of substandard Houston apartments, stopping this week for a visit at the 172-unit Candlewood Glen Apartments, near the 5400 block of DeSoto:

Now, only about 12 units remain legally occupied, and the management office is shuttered. Rotting trash sits in piles. Copper pipes and air conditioners’ coils have been ripped on a mass scale from burglarized units. The swimming pool is filled with water the color of crude oil.

“It’s just a horrible place,” said Roy Millmore, executive director of the Near Northwest Management District, an organization that focuses on reducing crime in the area.

The poor conditions inside the complex have persisted for months, in part because many of the property’s 43 fourplexes are owned by out-of-state investors, rather than a single owner. That makes applying pressure to improve conditions more complicated for city inspectors.

Still, code inspectors had not visited the property in a decade until the Houston Chronicle documented its conditions. City officials say they had not received complaints from people living there and that they are trying to enforce codes more aggressively than in years past.

After the jump: Stiles’s Candlewood Glen Apartments photo tour. Plus: Available now!

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04/17/08 10:08pm

An update on the 1031-exchange debacle surrounding the West Oaks Mall: In March, the mysterious Edward Okun — the mall’s owner — was indicted by a Virginia grand jury on charges of mail fraud, for misappropriating $132 million invested in his 1031 exchange company, 1031 Tax Group — along with bulk cash smuggling and related charges. Days later, Okun was arrested in his home on Hibiscus Island in Miami Beach.

To the 340 investors who had trusted $150 million of their 1031-exchange funds to supposedly-qualified intermediaries controlled by Okun, this was good news. But it doesn’t necessarily mean they’ll get their money back — or find a way around the huge tax liability now associated with their failed exchanges.

The 1031-exchange investors in Okun’s 1031 Tax Group had hoped to recoup some of their missing funds by raiding Okun’s other assets — including the West Oaks Mall. But the Okun-controlled companies that owned the mall declared Chapter 11 bankruptcy in October.

Today, the Costar Group reports that the freestanding building formerly known as JCPenney at the West Oaks Mall has been put up for sale, along with a mall in Salina, Kansas. The trustee in the bankruptcy case has hired Keen Realty, the new real estate division of KPMG Corporate Finance, to market both properties.

04/14/08 11:25am

Fire at Compton Courts Apartments, 419 Richey Rd., Pasadena, Texas, April 11, 2008Reflecting on the recent attention drawn to State Rep. Hubert Vo‘s tenement-quality apartment complexes — as well as three more local value-priced apartment structures that burst into flames over the last few days — local blogger Slampo says the quintessential Houston residence is finally getting the attention it deserves:

We’ve long contended—in barrooms, on Metro buses, while walking our dog late at night—that the signature Houston residence is not the River Oaks mansion or the Heights cottage or the Westbury suburban rambler or the Randall Davis “loft” apartment or the Pulte Home in the Outer East Jesus Subdivision (we just love the ones with paddle boats on the man-made “lakes”) but rather the one- or two-bedroom unit in a two-story complex, usually but not always situated outside The Loop, that was constructed anytime from the late 1960s through mid-’80s and whose population typically has gone through one or more pronounced demographic shifts: say, from all-white to mixed to mostly black to predominantly Hispanic . . .

Slampo also makes note that Houston Chronicle readers online have taken up reporter Matt Stiles’s suggestion to identify similar “problem properties” around town:

The finely detailed and descriptive comments affixed to Stiles’ posting confirm that there’s nothing like the topic of “crappy apartments” to arouse the local populace. You don’t have to be a really perceptive sort to see that many of the bright-line social divisions in Houston—over crime, schools, “changing” neighborhoods—neatly align with the divide between apartment renters and owners of single-family homes and townhouses (and while race and/or ethnicity is a factor in these divisions, class is the underpinning). This is partly due to the proximity of subdivisions to sprawling complexes, a phenomenon that we assume is somehow linked to the city’s lack of zoning (but one that, come to think of it, we’ve noticed in other, newer-type Sunbelt cities). But mostly it’s because landlords allow these places to go down the toilet and become magnets for crime and gangs.

After the jump, that list of low-cost apartments Chronicle readers have come up with. And some of them still have vacancies!

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03/04/08 9:01am

Mecom Fountain, Main and Montrose, Houston

If you’ve been waiting for your chance to take the perfect dramatic nighttime photo of the Mecom Fountain, act now! The fountain at the middle of the five-way intersection of Main, Montrose, and Hermann Dr. is currently bubble-bath-free and lights up properly at night, thanks to a more-than-$100,000 renovation effort approved by City Council back in November and completed last week.

Back in the fall of 2006, someone had stolen the 264 bronze canisters and light bulbs that lit up the fountains. After staying in the dark for months, it got some help more recently . . . with floodlights from high atop Hotel ZaZa. Maybe now those floods can be turned into motion detectors!

Security measures to protect the Mecom Fountain lights will include additional surveillance by the Houston Police Department, the Hotel ZaZa and the Houston Parks and Recreation Department.

After the jump, photos of the fountain lit up the way it was and how it’s supposed to be, plus a view of the Hermann Park beauty taking a bath.

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02/07/08 10:54am

FSI Trailer

It’s not just a burgeoning problem that’s destroying neighborhoods and creating havoc in the real-estate market: Mortgage fraud is now also the target of over-the-top TV-show parodies. Yes, “FSI: Fraud Scheme Investigation” is . . . a training video for bored mortgage professionals — or anyone who’s suspicious (or wants to be) that he may be surrounded by unlawful real-estate hijinx.

But really, “FSI” is so much more than that. Designed for “maximum employee learning retention,” the DVD has been a runaway hit for Interthinx, a company that ordinarily provides risk mitigation and compliance tools for the financial-services industry, but occasionally breaks out of that mold to film comedy-dramas like this or its predecessor, “Desperate House Lies.”

But wait, there’s more!

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01/30/08 12:35pm

1704 Kipling St., HoustonNot all recipients of the 2008 GHPA Good Brick Awards will be able to attend this Friday’s historic-preservation awards banquet at the River Oaks Country Club, but some will have better excuses than others. Ken Rice, who along with Sarah Goodpastor will receive an award for the renovation of a 1930 brick duplex at the corner of Kipling and Dunlavy, won’t be able to make it because he’s currently serving a 27-month sentence in federal prison for securities fraud.

Yes, that’s former Enron Broadband CEO and architecture patron Kenneth Rice, who already helped lessen his sentence by testifying against other Enron executives in two separate trials after his 2003 guilty plea. Rice agreed to forfeit more than $13.7 million worth of cash investments, real estate, cars, and jewelry as part of his plea agreement. His sentence included a $50,000 fine.

Rice, 48, could end up serving less than half of his prison term, though.

His lawyers say he hopes to enter a drug and alcohol treatment program available to nonviolent federal inmates that, if completed, could shave up to a year from his term. In addition, federal inmates can reduce their prison time by 15 percent with good behavior. With those two combined, Rice could get out of prison in 11 months.

After the jump, details and photos of a project Rice is likely hoping will count towards that good-behavior credit.

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01/28/08 12:37pm

If you were wondering why the four-year effort to redevelop the Astrodome seemed like it was being run by the Keystone Kops, here’s a small piece of information that might start to explain a few things: Michael Surface, who up until a few weeks ago was chairman of the Harris County Sports and Convention Corp., has been indicted on corruption charges:

In order to secure business from the city of Houston, prosecutors allege, Schatte and Surface bribed Monique McGilbra, the city’s director of building services under then-Mayor Lee Brown, and hired her boyfriend, Garland Hardeman, as a consultant.

McGilbra pleaded guilty in 2005 to accepting bribes and has cooperated with prosecutors on the indictment.

According to the indictment, Schatte, 59, and Surface, 47, gave McGilbra free use of Schatte’s California condo, tickets to professional football games and a box containing champagne and $1,000 in cash. They also paid Hardeman more than $40,000 in consulting fees — $7,800 of which he funneled to McGilbra.

This is, of course, the same Michael Surface who decided to run a “competition” for the right to redevelop the Astrodome more than four years ago with this screwy premise: Ideas would only be considered if they were proposed by developers who had experience with projects of a similar size; but developers with experience on projects of a similar size would not be considered unless their ideas were considered acceptable. And yes, he’s the same Michael Surface who kept pushing the “winner” of the competition — Astrodome Redevelopment Corp. — to change its proposal from a space-themed amusement park to a convention hotel. And who gave them, during all that time, exclusive rights to negotiate a deal.

It’s not so surprising that new proposals for the Dome have begun to leak out in the few short weeks since Surface abruptly resigned his HCSCC post.

01/16/08 5:52pm

Live Oak Lofts, Houston

Residents of the Live Oak Lofts, you have been warned! Whoever among you has been smoking weed and stinking up the whole joint, you must cease immediately — the Live Oak Lofts Homeowners Association is on the case!

Don’t want to get all up in your business and all, but now that this has happened, the Association will not fail to contact the proper authorities if anything incriminating is further sniffed — or if you are caught doing anything illegal whatsoever!

After the jump, the scathing marijuana memo distributed to all residents of the Live Oak Lofts!

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11/15/07 12:42pm

Sliding Door Closeup from Crowne Plaza Hotel Demolition, Texas Medical Center, Houston

So professional and amateur detectives have huddled over the Crowne Plaza demolition videos and what have they come up with? Here are the rumors . . . er, clues!

First, mysterious Flickr member txrice123 writes:

the police are investigating a report that there may have been someone inside the structure on the fifth floor in the middle. a video taken from the face of your side (from St. Luke’s) apparently shows this person run to the edge, then run back. if you have any shots from before, you may like to look closely and send them to hpd.

The photo txrice123 is commenting on was taken from the west side of the building, and St. Luke’s is to the north, so the comment is a little confusing, no? And, uh . . . which fifth floor? The hotel had a podium.

Next, KPRC-TV keeps talking about a “shadow,” but isn’t shedding any light on the subject:

The home video showed a shadow inside the building moments before it was destroyed on Sunday.

Who knows what lurked in there?

And of course there’s the mysterious sliding door, shown enlarged above from the video in Swamplot’s earlier post. ABC13 hypes this part of the video, but neglects to point out that several gust-inducing dynamite blasts have taken place and the building has already started to rumble by the time the door starts “sliding.” Hey, isn’t a fire door supposed to close in a case like this?

After the jump, the door slides shut!

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11/15/07 12:05am

[youtube:http://youtube.com/watch?v=3dkfv0e2GCk 400 330]

Watch this video very closely. Do you see someone entering the building before the demolition begins? Maybe on the left side of the screen?

No? Well, keep looking. How about enlarging the video — or breaking it down frame by frame — so you can examine it more carefully?

Apparently someone who shot a video of the same event from the same angle saw something in it so disturbing that he brought the footage to the attention of the Houston Police Department. And officers found the evidence credible enough that they spent the greater part of Wednesday searching through rubble to see if maybe someone got into the Crowne Plaza Hotel in the Texas Medical Center shortly before it was imploded Sunday morning.

KHOU-TV reports that police are focusing their search on the Fannin side of the building, which would be the street on the left. The station also says that the video used as evidence was in fact taken from the St. Luke’s Medical Towerthe same vantage point as the YouTube video above.

So is the video above the same one the police are studying?

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10/02/07 10:30am

The Retreat at Cypress Station

When it was shopped around to investors last year, there weren’t too many offers for the Retreat at Cypress Station, a 296-unit apartment complex on an 18-acre site north of FM1960 near I-45. How come?

Hendricks & Partners’ principal Jim A. Hearn says the two-year-old asset at 18200 Westfield Place Dr., assessed at $22.7 million by Harris County, was on the market with another brokerage firm about one year ago, but was pulled due to lack of buyer interest. “By luck, this property was in lease-up during Hurricanes Rita and Katrina and the owners took on a significant number of corporate leases,” Hearn explains. As the corporate leases ran out, he says vacancies went up. “Some of the buyers were spooked,” he says.

What would happen when all those Katrina-era leases expired? Boo!

Apparently, some residents were spooked as well—by local crime. Back in January, an anonymous resident posted this gem about the complex to the Apartment Ratings website:

The shooting that occured on Wednesday was due to a damn drug deal.. If I understand correctly, the resident will NO longer be living here… BE SMART, take your damn valuables out of your vehicle and keep an eye out for your neighbors… This is a very good property for the area, yes you pay for it… It is worth it…

Well, now only 20 percent of the apartments are vacant. And the complex has just been bought by a fund managed by Boston’s TA Realty Advisors—even before Allied Realty Services, the company that built it, was able to put it back on the market.