Wells Fargo Becomes Biggest Landlord in East Palo Alto After Foreclosure Auction Has No Bids

Mountain View Voice reports:

Wells Fargo took ownership of more than 1,800 housing units in East Palo Alto's Woodland Park neighborhood Tuesday afternoon, officially becoming that city's largest landlord.

The bank's foreclosure auction for the properties, which were previously owned by Palo Alto-based firm Page Mill Properties, attracted no bidders Tuesday, said Elise Wilkinson, Wells Fargo spokesperson. As a result, Wells Fargo officially took ownership of the properties, which the bank valued at $142 million.

Page Mill has been vehemently criticized by its tenants and by city officials for repeatedly raising rents at the properties. Some have accused the company of "predatory equity" and demanded rent reductions. Page Mill had maintained that the raised rents are needed to fund security upgrades, seismic retrofits and other improvements at the properties.

The company is also embroiled in more than a dozen lawsuits with East Palo Alto over rent control at these properties -- lawsuits that the city officials hope to settle in the coming weeks.

Great moments in real estate.