Another apartment complex rescued from the clutches of famed real-estate investor and apartment-maintenance whiz Michael B. Smuck! This time it’s the Lodge at Baybrook, a 12-building, 322-unit compound on 13.7 acres just behind Baybrook Mall in Friendswood. Globe St.‘s Amy Wolff Sorter reports that Chicago-based Adams LaSalle Realty has bought the complex from Smuck’s bankrupt MBS Properties for “well below” the $28.6 million it first listed for back in 2006.
The Lodge at Baybrook was built just 9 years ago, but apparently there’s plenty of deferred maintenance for the new owners to take care of. No word of any impending name change.
- Adams LaSalle Picks Up 322 Units From MBS [Globe St.]
- The Lodge at Baybrook [CBRE]
- The Lodge at Baybrook [Adams LaSalle Realty]
- Help for the Huntwick [Swamplot]
Photo: CBRE
Very good article on MBS. I wish I would see an article that told the real truth about why and how MBS met its demise. Hurricane Katrina is just an excuse the company officers use. Smuck and his son’s empire fell so quickly because of a snowball effect that took place around September of 2007. He should lose his CPA for the cooking the books.
A majority of the MBS properties were performing terribly for years but investors did not know because Mr. Smuck a CPA would have his accountants modify rent rolls and financial statements and send them to investors. He used money from his acquisitions to fund the non performing properties as well as a line of credit he had with PNC Bank. He used up the line of credit and he could not purchase any more properties. (Pyramid Scheme) Chase bank froze all MBS accounts as well. He also had a company officer Mary Lynn Gonzales make fake capital improvement draws with bogus invoices to supplement the non performing properties and to pay investors. He had his own daughter lie to investors as they called in to inquire about why there quarterly checks were bouncing. Once this happened he could no longer keep his breach of fiduciary duties a secret so he came out and told his equity partner. Almost all of the properties were taken over by the special servicers or put in bankruptcy. Many of the MBS investors are in the dark about what really happened and there must be some justice for what he has done to thousands of investors. I would love to see an article out so investors know to stay away from this guy in the future. Mr. Smuck, his son Michael Smuck, daughter Stephanie Smuck, and Mary Lynn Gonzales have been reported to the FBI and to the US Attorney. This is a terrible white collar crime that should not go unnoticed. This list goes on, this guy is a greedy scumbag.
The information about MBS in the first comment is simply here say and should not be taken as factual information. I am an old tenant that is frustrated with them.
The information in the first comment is factual and I agree, I would love to see the truth printed for once. Katrina had nothing to do with Smuck’s demise. He was not even allowed to conduct his business in Louisiana due to being caught doing this same unethical business there. I worked for him for three years – I know I turned in capital improvement memos at least twice per year and never once received the money to do the improvements. My employees had bounced checks three times, during the Christmas holidays, from Mr. Smuck. Not only did they receive bad checks… they then had to prove they received them before Smuck would re-issue another check. What’s worse was that I, as a regional supervisor, knew the checks were going to bounce before the employees did. He should be in prison.
Everything said in the first comment is spot on. I also worked for MBS and personally caught my supervisor cutting and pasting a rent roll with sissors and a glue stick. We, as managers, were forced to lie to residents about repairs as no company would sell us supplies. We had numerous occassions where trash service and water were stopped due to non-paynment. New residents were moved into dirty apartments with shoddy repairs, old uncleaned carpet and were expected to deal with it. All “extras” tenents had come to expect were discontinued when MBS took over. I was also employed when our christmas paychecks bounced, although it didn’t happen at all properties. Forget a refund on your deposit as well. Even if the apartment was left in perfect condition we were forcefully told to find something to charge them for to keep all their money. Keep in mind all of what I experienced happened before Katrina — I was long gone by then. Working for those people made me leave the apartment industry for good.
While all this was going on, Mr. Smuck and wife were driving around in high-dollar cars, getting cosmetic surgery, buying a vacation home and living a millionaire’s life. Mr. Smuck, you can’t buy your way into heaven so continue to enjoy the good life while you can. God is keeping score.
To those who want to throw stones and talk about someone they really dont know:.
No one is judging you at the moment hating on someone for their actions and decisions only make you look like you are the guilty party! Are you jealous that through all craziness and heartache that they are able to hold up their head and still know that he are okay, it takes a strong and loving person to be able to go through what they are going through. When you know havent dont wrong, and only did things for others, and for a good cause and not a bad then no one can knock you down no matter what. He did what he could and had to do for everyone, he thinks of everyone else, he has the biggest heart i know. So before you people who seem to be living misearable lives want to begin with pointing the finger and saying stupid false statements look at your own lives and judge yourself, worry about you and your screw up and failures no anyone elses! You people need to get a life and open your eyes and see that the world today isnt what your WANT its what you’ve MADE it! its people like you that cant keep their comments, negitivity and hatered to themselves that cause people hurt, pain, etc, just remember what goes around comes around! blaming others for thier wrongs and you’ll be blamed for yours. Mr. Smuck is an awesome person and everyone will see it in the end, there is light at the end of the tunnel but only the nonjudgmental ones will see that!
Smuck, and Mary Lynn Gonzales are not good people. I worked for them and walked off the job when I received a call they were sending a fake rent roll for me to hand to an appraiser. Smuck ran a Ponzi scheme and like all Ponzi schemes it snowballed out of control.
Honest Person, Smuck admitted his guilt and begins serving his prison sentence in September. I can only assume that the reason Mary Lynn Gonzales isn’t going to jail is because she sang like a canary.
A lot of hard working people were conned out of money they had worked hard for and it’s now gone.
Smuck is not a good person, he’s very charismatic and intelligent, but has misused those traits due to greed.
All of the stress, fear, anxiety, doubt, and rollercoaster of emotions this man and his acolytes are experiencing is well deserved givent he fact of what they’ve done to others.