• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Leo Pustilnikov to acquire 17 Skid Row buildings in LA for $10M

Developer Leo Pustilnikov has agreed to buy 17 Skid Row buildings for formerly homeless residents in Downtown Los Angeles for $10 million.

The owner of Beverly Hills-based SLH Investments has cut a deal to buy the portfolio of buildings containing 1,200 units once owned by the Skid Row Housing Trust, the Los Angeles Times reported. The seller was Receiver Specialists, a receiver that controls the properties.

If the deal goes through, the price works out to $8,333 per unit.

The addresses of the properties, made up of single-room occupancy hotels and small apartment complexes, were not disclosed. Their 1,200 units serve formerly homeless tenants, many of whom are elderly, disabled or suffer from mental health problems.

The deal requires judicial approval slated for Los Angeles County Superior Court next month.

Under the terms of the deal, reported by The Times this month and formally announced in court papers filed by Receivership Specialists, Pustilnikov will pay $19 million for the portfolio — and then receive $9 million back to cover renovations and repairs. 

“The purchaser appears to me to be a responsible and qualified operator,” wrote Kevin Singer, president of Receivership Specialists, in the court filing. “The at-risk population that lives at the sale properties needs a permanent owner/operator, and without such an owner/operator the alternatives for these tenants could be catastrophic.”

For the trust buildings, Pustilnikov formed a partnership, Hope for an Affordable LA, alongside North Hills-based Hope the Mission, which will oversee social services. Mayor Karen Bass and city officials have insisted that mental health, addiction and other supportive services continue to be offered in the buildings as a condition of a sale. 

The sale to Pustilnikov, plus a separate sale to another owner for an additional property, would finalize the dissolution of the trust’s portfolio of 29 buildings.

The trust’s failure last year triggered what city officials called an “impending humanitarian crisis” with tenants living in squalid conditions and sparked widespread fears of losing a critical source of last-resort housing, according to the Times.

Eleven of the trust’s properties, mostly those newer and in better condition, already have been sold to nonprofit landlords.

The remaining buildings, which are older and lose money despite federal rental subsidies, struggled to find new owners as the traditional nonprofits shunned them. The city once planned to take over the rest of the portfolio, but the plan fizzled as budget pressures rose.

Last spring, Hollywood-based AIDS Healthcare Foundation offered to buy a dozen buildings for $53 million.  Then the nonprofit backed out because of the expected cost of repairs. 

Pustilnikov, who has long been interested in acquiring the trust buildings, now owns high-value residential and commercial properties across Los Angeles County. 

The 38-year-old developer has pioneered using the state legal loophole known as the builder’s remedy that allows developers to skirt zoning in cities with uncertified state housing plans, with mixed-use projects in the works in Beverly Hills and Redondo Beach. In the past decade, he estimates having completed more than $1 billion in real estate deals, according to a profile by The Real Deal.

— Dana Bartholomew

Read more

  • AIDS Healthcare bids $53M for Skid Row housing portfolio in DTLA
  • AIDS Healthcare scuttles $27M deal to buy six buildings on Skid Row
  • Skid Row Housing Trust diversifies into the distressed mortgage business

The post Leo Pustilnikov to acquire 17 Skid Row buildings in LA for $10M appeared first on The Real Deal.

Powered by WPeMatico

  • 29 July 2024
  • The Real Deal
  • Uncategorized
  •  Like
Revel and Leo Pustilnikov team to set up EV charging station in DTLA →← Judge orders Huntington Beach to update housing plan in 12 months
  • Recent Posts

    • Hoteliers sound the alarm on looming distress  May 24, 2025
    • Growth markets see retail boom even with tariff uncertainty May 24, 2025
    • Westchester resi project gets city OK after union drops objection May 23, 2025
    • WATCH: ‘Father of CMBS’ Ethan Penner to run for governor of California May 23, 2025
    • Fashion Island office fetches $756 psf May 23, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM