His company Stellar Management owns and operates major apartment complexes in such cities as Los Angeles, San Francisco, New York, and Washington D.C..
Stellar Management has been defaulting on properties all over the country. In December, Stellar defaulted on Aqua (formerly Marina Terrace) at 4750 Lincoln Blvd, Marina Del Rey. It was purchased by the publicly traded Brookfield (BAM) but it has kept Stellar on to manage the building.
In the last three months, Laurence Gluck has defaulted on over $700 million worth of loans.
The U.S. Attorney's office is going after him. PDF PDF PDF
Here is a typical comment on Aqua (formerly Marina Terrace) in Marina Del Rey:
It is SO true about the sirens. They go all day every hour and it can actually drive you out of your mind. When I moved in I stressed to the leasing office how important it was that I live in a quiet bldg. I was so deceived. My unit faces 7 air conditioning units from the bldg next door and I was told that the units do not run all night, but they do. I am being allowed out of my lease due to all the lies but what a pain it is to have to start looking all over again. Not to mention moving costs. They also CLAIM that the building is built according to condo specs. It is a blatant lie.
I thought it was only me that had issues with the noise but it's nice to read that I am not alone.
I have heard about the bike thefts. And yes, they let all these college students into the bldg who are so loud and leave their trash outside their units all day – and when you complain, they treat you like something is wrong with you.
The stairwells are stained with pet urine and it's quite nasty. And be careful, they are promoting on craigslist that the building offers free workout classes but they don't anymore. They actually are required to drop our rent when they remove an amenity but that wont happen. Everybody has a different rent. It's very odd. Tenants on the same floor, same size unit, can be paying $300 diff in rent. Very odd. And if you complain about it they don't care.
People get fired right and left or they quit because they cant take it anymore working for such low-lives.
All I can say is don't put yourself through it. Don't move in here. I hope to be out within 1 months. If not sooner. One person wrote the longer you live here the more you hate it and it's so true. Cool location but being on Lincoln the noise will truly drive you nuts.
Read more: http://www.apartmentratings.com/rate/CA-Marina-del-Rey-Marina-Terrace-formerly-Archstone-Marina-Terrace-And-Fiji-Villas-And-Chateau-Marina-1048136.html#ixzz0qJsZxkzf
The rent at Aqua runs from $2,000 to $3,000 a month. That's a lot of money to walk urine-infested stairwells and elevators that regularly break down. Dogs and cats use the stairwells to relieve themselves. The stench is rank and rooted deep into the carpet.
Here are some photos:




When Stellar Management defaulted on their loan, no announcement was made for weeks at Aqua. Finally, one of the tenants started putting up flyers.
Many tenants who don't renew their leases and go month-to-month face rent increases of $600 or more a month.
Another Stellar building, the Alexandria, located about a mile away in Manchester is also in foreclosure.
Other Stellar buildings have horrible ratings on apartmentratings.com.
Stellar has a history of taking over buildings, not keeping them up, and then defaulting on their loans.
The Health Department has cited Aqua for excessive dog feces.
Stellar has only been in property management for 18 months. They can get aggressive with their lawyers when tenants want out. One tenant took to sleeping with his furniture against the door. His relations with Stellar Management had gotten that bad.
I'm looking at an "Environmental Health Housing Official Inspection Report." It was done by James Daniel on April 1, 2010. He writes: "Observed dog feces on the pavement by the north side of the building. Organic matter on the carpet by the stairwell. Damage floor inside the freight elevator. Allege dog urine stains on the carpet here and there on the stairwells and the walls."
A tenant says: I am lied to by Lisa Curtis prior to move in about 12 air-conditioning units
I face (roof photos attached). She tells me after I ask if they run all
night, as I knew I would not be able to sleep if they did, "They do not run
at night."
I then move in and find out they do.
That was the beginning of this nightmare.
My first week here the elevators crashed, power went down twice and the
internet they force you to use, went down.
The longer you live here the more dramas occur. We didn't have a manager
here for over 2 months so nothing would be done if you went to Resident
Service and asked for help.
The noise here is horrendous. Although they say we have double paned
windows – they are worthless. Sirens run up and down the street at least
20-30 times a day. I was finally allowed out my lease 3 months after moving
in.
Lisa then began a campaign of telling employees not to help me.
When I asked for relocation money, as I would never have moved in here had I
not been lied to – they put this loser attorney on me from Karsaz &
Associates threatening me, accusing me of harassing employees that were
harassing me – and actually had the audacity to tell me I was not allowed to
work out of my home even though my lease is in my company name.
I then had to hire an attorney and defend myself.
After pulling the deed and loan docs and speaking to the owners of the land
(who also hate Stellar) I was told that Brookfield had now owned the
building. Apparently Stellar defaulted here in December.
Once I found that out I started to call them begging for help.
(At the same time a anew manager came in named, Steven, who was alarming to
say the least. I guess when they let Tracy, a 25 year-old, hire managers
for a 500 unit building that's what's going to happen. I wont even get into
the hell he took me and many others through. He was fired 2 months later
and now we are without a manager.)
At that point Karsaz, the loser, offers me $2500 to go away. Well I now
have incurred legal fees and $1500 for this nightmare, wasn't happening.
They also promised, in a legal document, they were going to provide block
out and sound proof blinds to help w/ the noise from the units. They made
me wait for 3 months and you can see in the attached photo what we ended up
with was a joke. This had to be taken down immediately because it was 100x
worse than the original blinds.
Moving on…
I rejected the offer and continue to beg Brookfield for help. At the same
time they tried to pressure me into signing a release that stated I would
not be allowed out of my lease unless I signed a release that I would not
talk to the press about what scum bags they are. I had to remind these
idiots that I already had two emails from them in Jan & March that I had
been allowed out of my lease and did not need any further permission to
leave.
One day, unannounced, Teri Hoyt from Brookfield (BAM) shows up at the
building to speak with me.
She offers me a deal and that once I found a place I liked – I would contact
her and she would wire me the money.
So I did that believing she would honor her word.
While waiting for over a week for the agreement I contacted her to ask for
it. When it was finally sent it had insane stipulations such as I had to
have the money go from my attorney to the new landlord (attached agreement).
As though any landlord would want to get involved in this – meanwhile I
would have to sign a non-disclosure so I couldn't even tell the new landlord
what was going on here.
Clearly this was all a game.
She then after telling me she wants me out of here, and after I asked to at
least allow the lawyer to give me 50% at signing – she sends me an email
stating you don't have to sign the agreement we are okay if you continue
living there, and then says "Consider the deal withdrawn."
These people are SO wacked.
So I go down to the biggest (he's actually quite short) prick, Tracy Fones,
who runs their property (into the ground) 'The Enclave' in Silver Spring,
MD [now in foreclosure], and we agree that I would live out my attorney's fees ($1500) instead of
them giving me the money. I tell him I planned to vacate by the end of the
month but would keep him abreast of any changes…and I did.
Below is the agreement.
"That is confirmed and I will make sure no late fees are charged and no 3 day notices are sent out."
Sent: Tue 5/4/2010 7:11 PM
To: Tracy R. Fones
Subject: RE: May Rent
Hey Tracy:
I was waiting for you for a while in the lobby but you were busy.
Per my email to you, and our conversation, I'm confirming that I will be
living out the legal fees which I incurred because of Stellar and Brookfield
not honoring their commitment to reimburse me for said fees.
Based on a monthly rent of $1827.00 and fees totaling $1500.00 — it comes
to 25 days. My intent is to be about by the 25th and will keep you up to
date on any changes.
If you need to go over anything with me please let me know.
Thanks"
Clearly this was not a guarantee of a move out and it was also clear this
was reimbursement.
All month I kept him in the loop verbally and in writing that I had not
found a place – and would probably wait till after the 1st as I knew more
listings would become available.
At no time (prior to the 25th) did he ask me to bring rent down or even let
me know there was an issue with it.
Suddenly…on the 26th I receive this…
"Per your e-mail on May 4, 2010 we agreed you would not be responsible to
pay rent for the period of May 1, 2010 through May 25, 2010 if you vacated
on or before May 25, 2010. Today is May 26, 2010 and since you have not
vacated your apartment you are now responsible for all of May 2010 rent in
the amount of $1827.00 as well as all rent and utility charges going
forward.
Please make payment by May 31, 2010 to avoid any further actions needed to
collect the outstanding rent.
Please let me know if you have any questions.
Regards"
Tracy Fones | General Manager
The Enclave | 11225 Oak Leaf Dr. | Silver Spring, MD 20901
Office: 301.593.6600 | Fax 301.593.0218
E-mail: trfones@enclavesilverspring.com
*************************
Clearly the guy is… (and I told him so to his face while he stood there
saying nothing) and clearly this was their game plan all along to get me out
of here. When I reached out to Teri she stands by what he did and accused me
of illegally obtaining personal information about tenants…when it was the
assistant manager, Diashell, who actually disclosed the information to me.
She actually told me about another tenant bouncing checks.
This place is insane. There are 2 women who work here who use the word
'aks' instead of ask. I mean if you are going to work in a large complex
shouldn't you be able to speak English properly?
So I then brought down money for the 26-1st and they sent it back to me.
They then served me with 3 3-day notices over 6 days. First they had the
wrong date, second one did not include my biz name – and the 3rd was served
on the 8th of June after I brought down June's rent and the last week of May
again. That too returned. They actually served me with the 3rd one days
prior to returning $2100 they were in possession of.
So now I await the next move from these unethical morons.
Meanwhile the building is in an uproar as their accounting dept is so
screwed – people are paying rents but they are not being entered properly
and so they too are being served 3 day notices asking them for thousands
they do not owe.
Others are being pressured into signing new leases or their rent will go up
$600-$1000 a month.
These people are the equivalent of Bernie Madoff.
We are signing a petition to get Stellar out so lets hope for the best.
Everyone here has a story of deception.
So…apparently this building is built over gas tanks. We are next to a gas
station and some women have been getting sick.
Stellar was concerned that some information would come out about the gas
tanks and the structure of the building and then Brookfield would not buy it
– but I guess they were able to suppress it.
Just another day at AQUA.
Here is the settlement agreement:
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT (this “Agreement”) is made and entered into effective as of April __, 2010, by and between, in her individual capacity and in her capacity as representative of (“Tenant”), and Marina Terrace I Owner, LLC, a Delaware limited liability company (“Landlord”).
RECITALS
1. Tenant is the tenant under that certain Residential Tenancy Agreement dated as of October 7, 2009 (the “Lease”). Capitalized terms not defined herein shall have the meanings set forth in the Lease.
2. A dispute has arisen between Tenant and Landlord, and the parties now desire to settle such dispute on and subject to the terms and conditions contained in this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants, conditions and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Vacating the Premises; Lease Termination. Tenant shall vacate the Premises no later than the date that is forty-five (45) days after the date of this Agreement. Tenant shall leave the premises in good condition and repair, and otherwise in the condition as required by the Lease. Rent shall continue to be due and payable pursuant to the terms of the Lease through and including the date on which Tenant vacates the Premises. Notwithstanding anything to the contrary contained in the Lease (including, without limitation, Section 3 thereof), Landlord and Tenant hereby agree that the Lease shall expire, and the term of the Lease shall end, on the date that is forty-five (45) days after the date of this Agreement.
2. Settlement Payment. Upon receipt of Tenant’s signature to this Agreement, Landlord shall deliver the sum of $7,000.00 (the “Settlement Payment”) to Tenant’s attorney, xxx (“Tenant’s Attorney”). Tenant’s attorney shall (and by the signature of Tenant’s Attorney below does hereby agree to) hold the Settlement Payment in an attorney trust account for the mutual benefit of Tenant and Landlord, and shall be authorized to release the Settlement Payment to Tenant only upon receipt of written notice from Landlord that all of the following have occurred (the “Release Conditions”): (a) Tenant has vacated the Premises in compliance with this Agreement and the Lease, (b) Tenant has not defaulted in the payment of rent due under the Lease, and (c) Landlord has received a copy of a fully-executed rental agreement for rental housing between Tenant and the owner/manager of the related property (a “New Landlord”) (provided, however, in the event that, prior to Tenant vacating the Premises, Tenant requests that Landlord deliver a portion of the Settlement Payment directly to a New Landlord in order to pay sums required as a condition precedent to Tenant and such New Landlord executing such rental agreement, Landlord agrees to instruct Tenant’s Attorney to pay such portion of the Settlement Payment to such New Landlord so long as Landlord has received evidence that such payment is the only condition precedent to Tenant and such New Landlord executing such new rental agreement). In the event that all of the Release Conditions have not occurred prior to the date that is forty-five (45) days after the date of this Agreement, Tenant’s Attorney shall return the Settlement Payment to Landlord.
3. Release of Claims by Tenant. Effective upon Landlord’s confirmation that the Release Conditions have been satisfied (or waived by Landlord), Tenant, and anyone claiming by, through or under Tenant, hereby waives its right to recover from and fully, finally, absolutely, and irrevocably releases Landlord, Marina Terrace I Owner LLC, Brookfield Real Estate Financial Partners, LLC, Brookfield Asset Management Inc., Stellar Management Inc., Stellar California Management Co., and all affiliates, subsidiaries, employees, directors, officers, shareholders, members, partners, representatives, agents, successors and assigns of the foregoing, and all persons, firms, corporations and organizations on their behalf (collectively, the “Landlord Parties”) from any and all claims of any and every character for any cost, loss, liability, damage, expense, demand, action or cause of action arising from or related to the Lease (“Claims”), including, without limitation, any and all Claims that are direct or indirect, contingent or matured, of whatever kind or nature, for or because of any matter or things done, omitted or permitted to be done by any of the Landlord Parties, at law or in equity. This waiver and release includes claims of which Tenant is or may be presently unaware or which Tenant does not presently suspect to exist which, if known by Tenant would materially affect Tenant’s release of the Landlord Parties. Nothing in the foregoing release shall release Landlord from its obligations under this Agreement.
4. Release of Claims by Landlord. Effective upon Landlord’s confirmation that the Release Conditions have been satisfied (or waived by Landlord), Landlord, and anyone claiming by, through or under Landlord, hereby waives its right to recover from and fully, finally, absolutely, and irrevocably releases Tenant from any and all Claims, including, without limitation, any and all Claims that are direct or indirect, contingent or matured, of whatever kind or nature, for or because of any matter or things done, omitted or permitted to be done by any of the Tenant, at law or in equity. This waiver and release includes claims of which Landlord is or may be presently unaware or which Landlord does not presently suspect to exist which, if known by Landlord would materially affect Landlord’s release of Tenant. Nothing in the foregoing release shall release Tenant from her obligations under this Agreement.
5. California Civil Code Section 1542 Waiver. In furtherance of the waivers and releases contained in Sections 3 and 4 above, each party expressly waives any and all rights conferred upon it by the provisions of California Civil Code Section 1542, and expressly consents that this Agreement shall be given full force and effect according to each and all of its express terms and provisions. Section 1542 provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
Each party hereby understands and acknowledges the significance and consequences of such release and specific waiver of Section 1542 and has been advised by independent legal counsel concerning the same.
By: ______________
Initials – Tenant
By: ______________
Initials – Landlord
6. Confidentiality. Neither the existence of this Agreement nor any of the provisions thereof shall be disclosed by Tenant or Landlord to any person, except to their respective legal counsel, and except as may be required by law or pursuant to any court order, subpoena or other legal process. Furthermore, Tenant agrees not to verbally, in writing, or otherwise, make any disclosure about, or share, discuss, or comment on, her residency at the Premises, Landlord, any of the Released Parties, the Premises, or the property of which the Premises is a part, to or with any other person (other than her legal representatives), and Landlord agrees not to verbally, in writing, or otherwise, make any disclosure about, or share, discuss, or comment on, Tenant to or with any other person (other than Landlord's legal representatives).
7. Miscellaneous. This Agreement may be executed in counterparts. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement embodies the entire agreement and understanding between Tenant and Landlord, and supersedes all prior or contemporaneous agreements and understandings of such persons, verbal or written, relating to the subject matter hereof and thereof. Any term or provision hereof finally determined by law to be unenforceable or invalid shall not affect any other term or provision hereof. THIS AMENDMENT IS GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA. Time is of the essence as to each term or provision of this Agreement.
REPORT FROM DEC. 17, 2009:
A according to a report in Real Estate Finance & Investment, Brookfield Asset Management has taken over a 3,900 unit apartment portfolio from Steller Management.
Stellar Management acquired the portfolio from Archstone Smith for $952 million in 2007. In addition to One Superior Place in Chicago (pictured right), the portfolio encompasses properties in Los Angeles, Washington, D.C., and New York City.
EMAIL: "Hey Luke, my name is Tony Morris. I ran a fitness program for Stellar for approximately two years. They always payed me late but they payed me, until the last six months. I heard every excuse as to why it was going to take longer and was given one project after another in order to get paid. I was told to keep the program going, not to stop by "Tim Good". My business management team sent invoice after invoice with no response. After six month of not receiving payment I was forced to shut down the fitness program. The fitness program consisted of Yoga, Boot camp, cardio kickboxing etc. Stellar has agreed to pay me $5,000 of the $18,850 they owe me. Why would they not pay what they owe? $5,000 of $18,850… What?… No! Now they won't take my calls, what do I do?"
A tenant writes:
“I am beyond livid at them. Did you know my neighbor had a miscarriage from those fumes (next to Fiji Building)?!
We need a flyer to put out in the elevators in this building warning people about their health. There are about 7 people I know of who are about to be involved in a class action suit against these assholes!!
Do you know much my medical bills are from this?”
Another Tenant:
“It was so great meeting you. I took over a sublease in this "fabulous building in Marina Del Rey" back in February and it has been a nightmare ever since. It has been such an exhausting experience and I really don't have the time, or energy to keep repeating myself over and over with nothing ever being resolved. If I ran my business like this, I would be out of business.
If you could send me everything you have, I would greatly appreciate it. Also, if you'd like someone to help organize a petition, or a resident action committee, I will do what I can. I'm sure your attorney would jump at the chance to make this a class action suit instead of just a 1 person thing.
Thanks for bringing me hope to a hopeless situation.”
Another unhappy tenant:
“I did talk to them about changing units and resigning 3, 6, 12 month leases. However, I am not going to stay here. I am moving back to the Midwest at the end of July. I'm just so relieved I don't need to deal with them or live here anymore!”
Another email:
“hello,
I am curious about the health dept issues here at aqua…we had a huge
encounter with the building manager today and had to ring head office
to complain about him…we have been here since may/june and have
hated it but never really complained much…we are facing the loading
dock and essentially our windows open to the "dog run" where people
dont clean up after their dogs. I suggested they at least have bags
available and a bin…that would help. I am also someone who is
terrified of certain breeds and asked specifics about their
restrictions when moving here from archstone…at archstone there were
two aggressive pits on my floor and I couldn't live with that and here
I move in and discover a few days later that there are pit bulls
galore…one who broke free from its leash and attacked another dog in
the back loading dock, on building premises. The dog still lives here.
It doesnt seem right to me. I hate this place with a passion…today's
incident was the ultimate…I had salvation army here to collect some
bits of furniture I was donating…I thought a nice thing to do..and
as you know there has been an elevator down for three months…well
today the other elevator that leads to the alley also broke so we had
some of the furniture in the lobby…the manager wouldnt let my
partner do this so movers left and my partner was stuff with furniture
in the lobby…the guy wouldnt help him, no solutions, was incredibly
rude…just so depressing to be here…
anyway long rambling story…I just wanted to know what info you had
about the dept of health…”



JULY 7: The Real Deal:
Developer Laurence Gluck is facing a $110 million foreclosure suit at 2 Rector Street from Bank of America, about a year after losing one of his largest tenants at the 27-story office building in the Financial District.
Bank of America, in a July 1 lawsuit filed in New York State Supreme Court, alleges that it called in a default on Gluck in April 2010, after he failed to make required monthly payments at the building, which operates under the name Wall Street Plaza West.
Gluck, in February 2010, notified the lender that he would no longer be able to make his payments, citing the loss of a major tenant in June 2009. The suit did not name the tenant that vacated the building, however Fitch Ratings reported that the tenant leaving the space had 72,000 square feet, or 17 percent of the available space, which matches the description of the city Department of Transportation's office space.