Case Win: Allies Place Gets A Face Lift

The Property

In October of 2000, the City of Moreno Valley boarded up a substandard, vacant apartment building at 22850 Allies Place. That building was part of a two building apartment complex. The other building, at 22862 Allies Place, was occupied at that time. However, by September of 2002, it had also become substandard due to years of deferred maintenance. The City was informed by one of the tenants that the owner of the two buildings was in a federal penitentiary in the State of Nevada. Upon further investigation, the City discovered that a third substandard and partially vacant apartment building located directly across the street at 22851 Allies Place was held by the same owner. All three buildings had numerous Health & Safety Code violations.

Receivership Under Health & Safety Code

In late 2003, the City approached Best Best & Krieger about appointing a receiver over the substandard buildings under Health & Safety Code Section 17980.7(c). In November 2003, after sorting through over $7,000,000 in judgment liens and the owner’s numerous aliases, Best Best & Krieger filed a petition to appoint a receiver in Riverside Superior Court. In January 2004, Judge E. Michael Kaiser appointed Eric Beatty as receiver over all three substandard buildings. Once appointed, Beatty completely rehabilitated two of the substandard buildings. Dilapidated carports were converted to enclosed and secured garages, plumbing was replaced, kitchen and bathroom fixtures were replaced, forced air/heat units were installed, new floors were installed, landscaping added, and the exterior of the buildings received a complete facelift. After rehabilitation, the Court authorized the sale of the two buildings for $1,090,000, free and clear of all pre-existing liens. The court also awarded the City over $34,000 in legal and administrative fees, to be paid from the receivership estate, including the City’s administrative fees for emergency abatement, which pre-dated Best Best & Krieger’s involvement.

What was once a public nuisance nightmare was transformed into prime real estate selling for top dollar, ultimately at no cost to the City. The third building at 22851 Allies Place is currently under renovation, and the receiver has been approached by investors offering to purchase it for over $400,000 upon completion of the rehabilitation.