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Facing FBI probe, PSERS backtracks on disclosure that staffers were on both sides of real estate dealings · Spotlight PA

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HARRISBURG – Amid an FBI investigation, the mammoth PSERS retirement plan rejected as poorly worded an official disclosure form that said its top investment staff were also paid by a firm that was tasked with managing its Harrisburg real estate.

The fund said that in fact none of its staff received “additional compensation” even though the forms stated that they were paid employees of both the retirement plan and the real estate company. The $ 64 billion fund said it filed substitute reports with the IRS “to correct this mistake.”

The announcement of the plan came in response to questions from Spotlight PA and The Inquirer – and after federal prosecutors received information about the $ 1.6 million purchase of the former Harrisburg Patriot News building at 812 Market St Properties.

PSERS said it changed the required disclosure forms for the nonprofit 812 Market Inc., which was founded in 2017 to maintain ownership of the Harrisburg real estate. The forms continue to state that PSERS Chief Investment Officer James H. Grossman Jr. and two of his employees are on the board of 812 Market Inc., whose board members are top executives from PMI Property Management, Inc to the real estate.

While the original forms state in one section that Grossman and the others received no money from their board membership, it also states elsewhere that he and the others, Deputy Charles Spiller and Senior Real Estate Manager William Stalter, work for and from PMI get paid for it.

“The officers and directors of 812 of Market Street, Inc. are employees of PMI Property Management, Inc …”, the documents say in part. “PMI Property Management, Inc. pays the officers of 812 Market Street, Inc.”

Grossman is the highest paid employee in the state of Pennsylvania, making $ 485,421 a year. Spiller (and another surrogate Grossman) are the second highest, making $ 399,611. Spiller is the leading provider of real estate investments in the fund and informs its board of directors about such purchases. Stalter, who is also a real estate expert, will receive $ 241,801.

Attempts to contact the three PSERS officers have been unsuccessful. PMI executives Eric Kunkle and David Dyson declined to comment. For the management of the properties, PMI received $ 30,000 annually for the past fiscal year. No one has been charged with any crime in connection with the state investigation into PSERS.

PSERS is short for Pennsylvania School Employees’ Retirement System. As one of the largest retirement plans in the country, it sends more than $ 6 billion in checks annually to 265,000 former teachers and other retired public school workers. It is backed by its investments and payments from professional educators and taxpayers.

The fund, which has come under increasing criticism for its unremarkable investment returns, has tarnished since the federal investigation was announced in March. As previously reported by Spotlight PA and The Inquirer, federal prosecutors and the FBI are using a grand jury and subpoenas to investigate Harrisburg property purchases, as well as the board’s acceptance of a figure last year that falsely exaggerated its investment gains. The board later reversed course in April, saying that newer school employees would have to pay more for their retirement starting July 1.

State Senator Katie Muth, D., Montgomery, who became a member of the PSERS board this year, said Monday she asked fund management for information about the Harrisburg charities and real estate investments but never received any responses. The answer, she said, was, “We’re still checking.”

In its statement on Monday, the pension system said it had set up nonprofits to own real estate as a buffer against lawsuits “to limit legal risk.”

PSERS did not say when it submitted the revised forms. As previously reported by The Inquirer and Spotlight, prosecutors searched subpoenas dated March 24 for information about the Harrisburg property. At a board meeting closed to the public and media on the 5th of PSERS to contact the FBI investigation, inform the board of the disclosure forms and see if the staff were paid by the real estate company and if the board was at all knew the nonprofits were being formed, sources said.

The fund has set up about half a dozen nonprofits to hold titles in its roughly 15 real estate investments across the country, IRS records show. While Monday’s statement cites only one, 812 Market Inc.’s public records show that the same incorrect language was found in filings for two other nonprofit PSERs, one for their headquarters and another for a mall in San Antonio, Texas .

Before the board released its statement, reporters asked Charles Elson, a finance professor at the University of Delaware and a corporate governance expert, to review filings known as 990s, which are named for their official IRS form number. He said they were either “poorly worded” or had an obvious conflict of interest for PSERS.

“It puts these people on both sides of the deal,” said Elson. “You are an employee of the pension system, but why do you work with a company and get paid by a company that does business with the pension fund?”

While PSERs invested its billions mostly in non-public stocks, bonds, and private equity firms, it has also bought some real estate direct and bought $ 1.1 billion worth of real estate. Its holdings are eclectic – too much, critics say – ranging from a mall in Ft. Lauderdale to RV parks in Michigan to a pistachio orchard in California.

In 2017 PSERS started buying properties near the place of residence. The agency kept the purchases a secret and kept the plans a secret. Apart from the demolition of the Patriot News building, nothing visible was done on the property. At one point, fund managers advised the board that the plan could potentially work with Harrisburg University of Science and Technology on an office tower, but the university recently said it hadn’t come of that.

The first major purchase in Harrisburg was the $ 1.6 million purchase of the Patriot-News print shop and offices in late 2017. Over the next three years, the fund spent an additional $ 1.4 million to buy seven more properties, a mix of buildings and parking. According to the fund’s internal documents, an additional $ 7 million was spent on demolition and “site development” costs.

In another PSERS development, the fund released a separate statement on Monday regarding its decision to pay private lawyers for eight unnamed employees. It released the statement a day after The Inquirer published a story about how the agency will pay up to $ 40 million in legal fees each year for employees involved in an investigation. The fund will also pay employee defense lawyers until each lawsuit is completed.

The fund said it was “obviously unfair” to force its employees to pay for lawyers and said that this fund could get any money back if “an employee is later found guilty of a crime”.

WHILE YOU ARE HERE … If you learn anything from this story, keep paying and join Spotlight PA so that someone else can at Spotlightpa.org/donate in the future. Spotlight PA is funded by foundations and readers like you who advocate accountable journalism that gets results.

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The JOLT Real Estate Report for June 6-12, 2021 | The JOLT

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This weekly report covers sales of single-family homes in Thurston County for the past week.

98 sales were completed from Sunday June 6th through Saturday June 12th 2021. The average sales price for these properties was $ 465,000, or $ 270.39 per square foot.

The average length of stay for these objects was 8.34 days, of which three objects were on the market for 50 or more days.

Without these three properties, the other 95 houses were on the market for an average of just 5.85 days.

CITY / address bed bath Square feet $ / Square foot Selling price
LACEY
7825 Greenview Dr. NE 4th 3.00 2,990 $ 267.54 $ 799,950
7541 50th Avenue NE 4th 2.50 2,682 $ 272.18 $ 730,000
4452 Campus Dr. NE 3 2.25 2.406 $ 286.78 $ 690,000
4073 Cameron Lane NE 4th 3.25 2,736 $ 208.33 $ 570,000
9541 28 3 2.50 2,190 $ 247.91 $ 542,931
2506 Greenlawn St SE 4th 2.50 2,871 $ 185.30 $ 532,000
2815 Kacie Ct NE 4th 2.50 2,297 $ 231.17 $ 531,000
7121 insert St SE 3 2.50 2,521 $ 206.27 $ 520,000
8624 Adonis Avenue NE 4th 2.50 2.157 $ 238.29 $ 514,000
3912 Willows Campus Lp NE 4th 2.50 2,520 $ 201.19 $ 507,000
3505 Barklay Dr. NE 3 1.75 1,850 $ 270.27 $ 500,000
7940 8th Avenue SE # 41 4th 2.50 2,328 $ 214.47 $ 499,296
4540 Stonegate St SE 4th 2.25 1.956 $ 253.07 $ 495,000
1901 Sycamore St SE 3 1.5 2,000 $ 245.00 $ 490,000
1901 Diamond Lp SE 4th 2.5 2,281 $ 214.82 $ 490,000
8345 Bainbridge Lp NE 2 1.75 1,393 $ 333.81 $ 465,000
3323 Nova St NE 3 2.5 1,704 $ 271.13 $ 462,000
5018 Andrew Street SE 4th 2.5 1,876 $ 245.20 $ 460,000
534 Kenneth Ct SE 3 2 1,596 $ 280.70 $ 448,000
9410 Bowthorpe (Lot 244)) St S 2 2 1,648 $ 268.39 $ 442,304
5617 Mount Rainier St SE 3 2.25 1,602 $ 268.41 $ 430,000
3325 Stanford Ct SE 3 2 1,236 $ 343.85 $ 425,000
7633 Rushmore Wy NE 3 2.5 1,509 $ 275.02 $ 415,000
5819 Vermont Avenue SE 3 2.25 1,395 $ 290.32 $ 405,000
5645 54th Avenue SE 3 1 1,048 $ 352.73 $ 369,660
9039 Deni Dr. NE 3 2 1,372 $ 266.03 $ 365,000
6115 Balboa Lane SE 3 2.5 1,361 $ 268.19 $ 365,000
5648 Waldron (Lot 1613) Dr. NE 3 2.50 2,505 $ 305.77 $ 765,948
OLYMPIA
5524 Brennerstrasse NW 3 2.75 2,932 $ 375.17 $ 1,100,000
7716 Ostrander Ct SE 4th 3.50 3,960 $ 240.15 $ 951,000
1639 Summit Lake Shore Road 2 2.25 2.154 $ 428.97 $ 924,000
6427 Cooper Point Rd NW 3 3.00 2,874 $ 311.06 $ $ 894,000
6212 78th Avenue NE 3 2.50 2,787 $ 298.53 $ 832,000
4027 Birkdale Lane SE 3 2.50 2,703 $ 306.88 $ 829,500
4636 Gifford Road SW 3 2.50 2,456 $ 321.66 $ 790,000
3924 Prestwick Lane SE 3 2.50 2,629 $ 296.65 $ 779,900
8544 44th Avenue NW 4th 2.75 2,962 $ 254.90 $ $ 755,000
4509 90. Wy SE 4th 2.50 3,267 $ 229.57 $ 750,000
11828 Parkview Ct SW 3 2.50 2,280 $ 296.05 $ 675,000
3139 Lindell Rd NE 3 2.50 2,661 $ 248.03 $ 660,000
5621 93rd Avenue SE 3 2.00 1,850 $ 351.35 $ 650,000
6511 Canyon Ct SW 3 2.75 1,896 $ 340.19 $ 645,000
5209 81st Avenue SE 4th 2.50 2,496 $ 250.40 $ 625,000
9639 Old Autobahn 99 SE 3 1.75 1,644 $ 363.75 $ 598,000
7310 Libby Rd ​​NE 3 2.00 1,344 $ 427.83 $ 575,000
3981 Pifer Rd SE 2 2.00 2,079 $ 266.96 $ 555,000
6739 Libby Rd ​​NE 3 2.00 1,598 $ 344.18 $ 550,000
8510 Rocky Lane SE 4th 2.00 2,999 $ 183.39 $ 550,000
2824 Acacia Ct SE 3 2.00 1,716 $ 314.69 $ $ 540,000
7144 Cavalier Lp SW 3 2.50 2,031 $ 260.96 $ 530,000
2636 18th Avenue NE 3 2.50 2,019 $ 262.51 $ 530,000
920 Sarah Ct NW 4th 2.5 2.136 $ 223.31 $ 477,000
1300 Scenic Ct SE 3 2.5 2.136 $ 220.04 $ 470,000
3317 Gonzaga Ct SE 3 1.75 1,530 $ 302.61 $ 463,000
5039 Madison Heights CT SE 3 2 1,444 $ 318.56 $ 460,000
7713 Rainier Avenue SE 2 2 1,944 $ 234.05 $ 455,000
3411 Hoadly St SE 2 2 2,442 $ 185.09 $ $ 452,000
5034 Chambers Creek LP SE 3 2.75 1,541 $ 288.77 $ 445,000
307 Messenger Ct SE 3 1.75 1,400 $ 314.29 $ $ 440,000
8634 35th century SE 3 1.75 1,748 $ 250.57 $ 438,000
1324 Clover St NE 3 2 1,874 $ 229.46 $ 430,000
441 Ranger Dr. SE 4th 1.75 2.144 $ 198.23 $ 425,000
8515 Sweetbrier Lp SE 3 2 1,680 $ 252.98 $ 425,000
729 Cottonwood Ct SE 3 1.75 1,508 $ 278.51 $ 420,000
1405 Alki St NE 3 2 1,412 $ 297.45 $ 420,000
407 Division St. 2 1 1,092 $ 375.46 $ 410,000
3617 Landau Ave NE 3 1.75 1,388 $ 288.15 $ 399,950
719 Kinwood Ct SE 3 1.75 1,098 $ 336.98 $ 370,000
1004 McCormick St NE 2 1.75 1,024 $ 355.47 $ 364,000
3523 Harvard Dr. SE 2 1.5 1,224 $ 290.03 $ 355,000
5110 Boston Harbor Rd NE 3 0.75 1,828 $ 153.17 $ 280,000
7042 Old Olympic Highway NW 1 1 640 $ 399.22 $ 255,500
RAINIER
16825 Reichelstrasse SE 3 2.50 2,736 $ 341.74 $ 935,000
16145 Reichelstrasse SE 4th 3.00 2,557 $ 307.00 $ 785,000
416 Easy St SE 3 2 1,874 $ 232.66 $ 436,000
719 Tipsoo Lp p 3 2 1,260 $ 309.52 $ 390,000
340 Briar Lane S # lot25 3 2 1.618 $ 210.14 $ 340,000
TUMWATER
401 Blass Avenue SE 4th 2.25 2,800 $ 206.70 $ 578,772
908 Cathy Ct SE 3 1.5 1,536 $ 292.97 $ 450,000
2504 Silver Lane SW 3 2.5 2.148 $ 206.01 $ 442,500
716 Dennis St SW 3 1.75 1,414 $ 311.17 $ 440,000
1626 Sundrop Lane SE 3 2.5 1,758 $ 231.51 $ 407,000
YELM
15420 SE Sunnyside Lane 4th 2.50 2,530 $ 290.51 $ 735,000
16946 156. Lane SE 3 2.50 1,992 $ 277.36 $ 552,500
9964 Justman St SE 4th 2.50 2,669 $ 185.46 $ 495,000
14968 101st Avenue SE 5 2.5 2,303 $ 208.42 $ 480,000
16144 Achat Str.SE 4th 2 2,060 $ 225.73 $ 465,000
9205 Carys St SE 4th 2.5 2,208 $ 208.33 $ 460,000
14969 101St Avenue SE 4th 3 2.142 $ 210.08 $ 450,000
10005 Cole Ct SE 4th 2.5 2.120 $ 212.26 $ 450,000
9101 Thea Rose Dr. SE 5 3 2,500 $ 180.00 $ 450,000
16657 Grünblattallee SE 3 2.5 1,766 $ 254.25 $ 449,000
10003 Tahoma Ct SE 4th 2.5 2.006 $ 204.39 $ 410,000
17721 Clearlake Blvd SE 3 2.5 1,740 $ 229.89 $ 400,000
9830 Ramsay Dr. SE 3 2.5 1,841 $ 215.92 $ 2nd $ 397,500
16229 Prairie Creek Lp SE 3 2.5 1,416 $ 268.36 $ 380,000
10008 suit St SE 3 2.5 1,413 $ 261.85 $ 370,000
16705 Wanda Ct SE 3 1.5 1.008 $ 337.30 $ 340,000

For more information on real estate in Thurston County, contact Kristy Woodford on 360-508-2800 at Holistic Home Group at Keller Williams South Sound 360-786-6900. Or email her at KWoodford@kw.com

The sales price development can be seen in this diagram:

Thurston County
Median sales prices
Week ends
Selling price
June 12 $ 465,000
June 5th $ 470,000
May 29th $ 475,000
May 22 $ 467,125
May 15 $ 450,500
8th of May $ 470,000
1st of May $ 440,000
April 24th $ 439,375
17th April $ 444.502
10th of April $ 434,950
3rd of April $ 478,414
27th of March $ 444,000
March, 20th $ 430,000
March 13th $ 425,799
6th March $ 430,000
27th of February $ 440,000

20. February

$ 433,950
13th February $ 414,750
February 6th $ 440,500
January 30th $ 385,837
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LA Real Estate Firms Are Making Deals Outside California

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CGI sold the Astoria on Celebration for $ 74.5 million.

Los Angeles real estate companies are paying attention to more dispersed markets and doing business outside of California, from Provo, Utah to Orlando, Florida.

In the past few weeks, two Westside companies have made major acquisitions.

Santa Monica-based MJW Investments bought a student residence at Brigham Young University, Utah. The price was not disclosed.

MJW acquired the 154-unit, 924-bed community in partnership with Redstone Residential Inc. of Provo, Utah.

With the acquisition, MJW now has more than 7,000 student residences in the United States.

Amenities at the property near BYU include a hot tub, sand volleyball court, pool, and on-site laundry facilities.

It is MJW’s sixth acquisition in this area.

In March, the company, together with Redstone Residential and Venice-based MHE Enterprises Inc., acquired a 1,156-bed student residence nearby.

In the recent acquisition, MJW plans to spend cash on the units and amenities to make it a more desirable property. Redstone Residential will oversee renovations and property operations.

“The close proximity to campus and the remarkable offerings are just some of the things that make this property incredibly attractive,” said Mark Weinstein, President and Founder of MJW Investments, in a statement.

“This means that our acquisitions will reach more than 2,000 beds in Provo in 2021. We are excited to bring a new living experience to the students at BYU and we are incredibly confident that once our capital projects are completed, this will be an enhanced living experience for the students, ”he added.

Voya Investment Management funded debt for the acquisition.

Further south, BH Properties, based in Sawtelle, acquired a retail center in Plano, Texas on June 1 for an undisclosed price.

Known as Preston Shepard Place, the property has 361,780 square feet of retail space on 31 acres. The center was built in 1995 and has Marshalls, Burlington and Tuesday Morning among its anchor businesses.

Only 55% of the location was rented when it was closed.

“Preston Shepard Place is an underutilized retail location poised for a surge in lease and traffic,” said Scott Henry, director of acquisitions at BH Properties, in a statement.

“With 163,002 square feet of vacancy, we have plenty of runway to generate future cash flow growth. We plan to accommodate a large number of retailers by spreading the larger vacancies across smaller spaces. The busy location and wealth dynamics offer the opportunity to achieve significant growth in NOI (Net Operating Income), ”he added.

From 2008 to 2018, the center was 94.4% occupied, according to BH Properties. According to the company, the current low occupancy rates are due to corporate insolvencies in private customer business.

The transaction marks BH Properties’ first retail deal of the year.

While other local businesses are adding assets, Woodland Hills-based CGI Real Estate Investment Strategies is giving up some properties in other states.

The company announced on June 3 that it had sold Astoria to Versity Investments at Celebration in Celebration, Florida for $ 74.5 million.

The property has 306 luxury apartment buildings spread over six four-story buildings with a central clubhouse and pool.

The property was built in 2016 before being vacated in 2017 due to construction issues. CGI acquired the vacant community in 2019 for $ 43 million and brought the property up to date. At the time of sale to Versity Investments, the property was 99% let.

“Our history as a fundamental developer has given us both the experience and confidence that we can take on a massive challenge like Astoria and turn it into a resort-style Class A facility,” said Gidi Cohen, CEO of CGI in an opinion.

“Having successfully restored the property to optimal condition and the Orlando market continued to pick up, we were able to exceed our business plan in record time,” he added.

CGI assumes that the property will develop well in the future.

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North Texas real-estate agent faces added charge in U.S. Capitol riot

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A Tarrant County real estate agent accused of entering the U.S. Capitol during the January 6 riot is charged again with involvement in violence during the riot, according to court records.

Katherine Staveley Schwab “intentionally and knowingly engaged in an act of physical violence” at the Capitol, according to court files filed last week.

Schwab, 33, had previously been charged with knowingly entering or staying in a restricted building or site without legitimate authority; and disorderly behavior on the Capitol grounds.

The new indictment was first reported by the Dallas Observer.

Schwab’s lawyer did not immediately respond to phone and email requests for comment. A phone number listed in Schwab’s name has been disconnected.

Katherine “Katie” Schwab, right.(FBI)

The indictment is the latest in a growing list of criminal charges against Texans related to the riots that broke out as Congress worked to confirm Joe Biden’s win in the 2020 presidential election.

Donald Trump falsely claimed victory and in a speech that day called on a crowd to march to the Capitol. Forty-five Texans were charged in connection with the riot, according to a review by the George Washington University Extremism Program.

The FBI said Schwab admitted to having flown a private plane to Washington with four other people the day before the uprising. On January 6, Schwab and the group listened to speakers near the White House before heading to the Capitol at around 10:30 a.m.

FBI agents said Schwab told them nothing was happening in the Capitol and some members of the group decided to go to the hotel, according to court records. There Schwab saw on the news that the Capitol had been violated, court records show. Schwab told authorities they had decided to bring an Uber back to the Capitol.

She told the FBI that she noticed there were some “bad apples” in the crowd.

“Although Schwab saw neither violence nor anyone who destroyed anything, she saw the door to the Capitol being destroyed,” an FBI agent wrote in Schwab’s criminal complaint. “Schwab said the crowds pushed her through the original doors into the building and into a lobby area.”

Schwab said she felt overwhelmed by the crowds. A Capitol police officer indicated an exit to her, according to the display.

Schwab was eventually arrested along with two other members of the group that flew the plane to Washington – Jennifer Ryan and Jason Hyland.

The newly submitted court files do not contain any information about the violence in which Schwab is involved. But a Ryan attorney, Guy Womack, said the government contacted him about the new charge and told him the same charge did not apply to Ryan.

“They claim that Ms. Schwab did something violent,” said Womack. “I think they accuse her of kicking a camera. It doesn’t sound like a very violent act, the little bit they told me. “

Womack said Ryan and Schwab only entered the Capitol even though there were violent people in the crowd who broke windows, broke into the office of House Speaker Nancy Pelosi and clashed with police.

“Hundreds of the defendants in this case should not be sentenced to prison for entering the Capitol,” he said. “The people at the front pushed their way through and some broke windows. It’s criminal activity – you can’t break a window in the U.S. Capitol. … But the overwhelming majority of people did not go into a private area at all. “

Womack said Ryan was “only there as an interested American citizen who wanted to see what the process was like”.

The US Press Freedom Tracker, which maintains a database of incidents of violence against journalists, reported several incidents of violence against the news media during the riot. Outside the Capitol, rioters stormed television crews and destroyed their equipment.

The day after the uprising, the real estate agency Schwab worked for said she was “no longer affiliated with the company.”

Five people died during or shortly after the riot, including Ashley Babbitt, who was shot and killed by law enforcement while trying to enter a restricted area.

According to her criminal complaint, Schwab referred to the shooting in a Facebook post.

“After the girl was shot,” she wrote, “then we untied all hell.”

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