GENTRIFYING PASADENA THROUGH FEAR-MONGERING & EVICTING TENANTS
CONNECTING THE DOTS
Pasadena, home of the Tournament of Roses parade and once known as an enclave of the elite, is currently the site of a battle pitting a large conglomerate operating under a myriad of LLCs and corporate headings against residents of the city.
Permits issued by Pasadena's City Planning department has enabled the purchase of numerous properties throughout the city by a residential developer using the pretext of gentrifying neighborhoods within the city. The buyer, Pasaterra LLC aka Pasaterra Capital, is evicting tenants in masse whose apartments are located in neighborhoods branded lower socio-economic sectors.
Through it's property management company, Helix Real Estate Management, Pasaterra is employing brutal, aggressive, and illegal tactics to expulse middle, lower middle, lower economic, elderly, and disabled, tenants, many living on fixed incomes and many who are minorities. To date, more than 150 letters citing "no cause" evictions have been posted on tenant doors and mailed to tenants. The developer asserts residents must vacate their units at the end of sixty-days because of extensive planned refurbishments that cannot be completed while tenants continue to physically reside in their apartments. The fact is, in at least one apartment complex, remodeling started more than two-months ago while tenants continue to reside at the property.
The actual reason for the evictions is to peform "upgrades" intended to enhance the superficial appearance of units so that these may be leased at substantially higher rents to new and more affluent tenants.
Every citizen of Pasadena should be concerned by the mass ouster of tenants, many who have resideed lived at their residences for decades and cannot afford to move to other locations within Pasadena because of dramatic increases in rent over the past few years. The evictions also come immediately following a worldwide pandemic and a quarantine which left many people unemployed and others working reduced hours. The quarantinee also resulted in the mass closure of businesses throughout the state of California and within the county of Los Angeles, and the city of Pasadena. Evidence of this can be seen at Pasadena's shopping mall named the Paseo located on Colorado Blvd. Online, the mall continues to be touted as an upscale shopping center though nowadays the complex resembles a ghost town with numerous empty store fronts available for lease. Couple this with the fact that many people are facing increased costs of food, utilities, and gasoline which have risen astronomically since the start of 2020 and continue to rise unimpeded as the nation teeters on the verge of a recession or worse.
This blog will provide evidence of the relationship between Pasaterra and the property management company which serves as it's henchman and will describe the illegal and retaliatory tactics being employed to evict tenants.
RENT CONTROL PROTECTIONS
The city of Pasadena does not currently have rent control protections in place though in November of this year, the city will vote as to whether it will or will not be adopt these. What is apparent in this rush to evict tenants is that the developers are trying to evict as many tenants as possible before the November 2022 measure is voted upon.
THE BUYER
Pasaterra aka Pasaterra Capital ("Pasaterra") is on the surface taking on the noble task of gentifying neighborhoods in the city of Pasadena and others in Hollywood which have been identified as lower economic areas. Unbeknownst to many, Pasaterra is affiliated to other massive conglomerates who own and manage properties throughout the state of California. The partners of Pasaterra are:
- Tim Trout
- Mandy Wang
- Aron Liu
Pasaterra is just one of thousands of private equity firms that are buying up properties across the nation. These firms identify properties, invest nominally, and perform upgrades that are highly cost-effective so that they may reap massive profits from as little investment as possible. Private equity firms also increase their profits by raising rents and cutting other building expenses like security and property maintenance. As a result of private equity firm actions, rents increase dramatically and over time impact all residents and potential residents. In the city of Pasadena, this means less if any affordable housing and a growing disparity between economic classes.
The following video from NBC and viewable on YouTube provides an expose' of what companies like Pasaterra and it's affiliates are doing and their adverse impact upon housing availability.
THE PROPERTY MANAGEMENT COMPANY
Normally, property owners hire property management companies to oversee maintenance of their investments but in the case of Pasaterra and as will be proven in this blog, the property management company, Helix Real Estate Management ("Helix"), is affiliated to the buyer and specifically through Pasaterra partner, Tim Trout.
NOTICE TO TENANTS OF A CHANGE IN OWNERSHIP
In December 2021, tenants at 435 N. Euclid Avenue received letters from the now former owner of that complex advising them that the property had been sold and that the property would be managed by Helix Real Estate Management ("Helix"). Tenants were also advised that from thereon monthly rent payments would be submitted via Helix's portal.
In February, some tenants received telephone calls from a representative of Helix named Tobin who never provided his last name. Tenants were asked if they may be interested in moving and were offered varying monetary amounts to vacate their premises. The amounts most offered by Tobin were from $4000 to $5000 thought anyone living in the county of Los Angeles knows that $4000 to $5000 might only suffice to cover one month's rent and barely cover the amount of a security deposit. Understandably, most of the tenants who were contacted, declined the offer.
Between March and July 2022, approximately 10 units were vacated. Before moving, some tenants disclosed they were paid $9000 and others, $10,000 to leave their units. However, in July during a meeting conducted between tenants and the Pasadena Tenant Union ("PTU"), some tenants revealed the only offer they saw was that provided in Helix's 60-day notice to evict which is $4900 for residents residing in a two-bedroom unit. One elderly woman stated she was offered $9000 only after advising Helix she is disabled. Two sisters who are Afro-Americans and have lived at the property since the late 1980s and live on a fixed income said they were only offered the $4900 referenced in the sixty-day notice. One White man who is a teacher was offered $9000. The meeting revealed that Helix offered White men and younger tenants substantially higher relocation fees than it did to older females and minorities. On the surface it appears Helix's offers discriminated based agism, race, and sex.
THE INITIAL 60-DAY EVICTION LETTER
The letter left taped on apartment doors contained two glaring discrepancies suggesting the document was not proofread prior to being issued by Helix. The discrepancies were sufficient to invalidate that letter. As highlighted below, the first page of the letter states that leases terminate effective August 30, 2022, while on the second page it states units must be vacated on or before August 1, 2022. As a result of the inaccuracies the notice created confusion and immense duress for some tenants.
Apparently, Helix was informed of their error by one of the tenants attending the meeting and on September 6, 2022, issued the following "corrected letter" stating a that tenants must vacate their units by September 4, 2022.
HELIX REAL ESTATE MANAGEMENT
Hiding their Office Address & Identity
A search of records confirms that the property located at 435 N. Euclid Avenue transferred ownership in February 2022 at which time, Helix became the property management company. To date, ALL correspondence to tenants from Helix, including the sixty-day notice to vacate units, are never signed by an officer of Helix.
Furthermore, in their documents, Helix references an office address at 3016 E Colorado Blvd #5760, Pasadena, CA 91107. However, this is NOT the physical address of any private company. This is the street address to a federal post office located in a complex known as The District. The suite number ("5760") cited by Helix in their documentation is actually a P.O. Box designation. And a search of zip codes found that the mailing address' zip code is 91106 not 91107.
Clearly, Helix is misrepresenting their physical office location which speaks to the character of the company. Both Helix's and Pasaterra's practices employ deception to veil their locations and the actual size of their companies. Helix's correct mailing vs street address is:
Helix Real Estate Management
P.O. Box 5760
Pasadena, CA 91106
Since it's arrival at the properties purchased by Pasaterra, Helix chose to perpetrate a charade hiding it's identity and physical location. The following contact information obtained about Helix is from their website found at https://www.helixrem.com/.
HELIX REAL ESTATE MANAGEMENT CONTACT INFORMATION
A search of the Internet located the following image (shown below) which is that of a United States federal post office located at 3016 E. Colorado Blvd in Pasadena at The District.
A search of the California Secretary of State's website reveals Helix was established on October 10, 2019 and it's principle address is at 728 Glenmore Blvd, Glendale, CA 91206 and not 1306 E. Colorado Blvd in Pasadena.
A search of 728 Glenmore Blvd confirms it is a private residence occupied by Tobin Koziol and his parents. As stated previously, Tobin has never divulged his last name when speaking to tenants nor referenced it in his company's documentation.
Another search of Tobin Koziol located a LinkedIn account. Immediately following mailing of Helix's "corrected" 60-day eviction notice, Mr. Koziol removed his photograph from his LinkedIn account. Fortunately, an image of his pre-edited account has been located and is also posted below.
LINKEDIN ACCOUNT AS IT APPEARED ONLINE (AFTER JULY 6, 2022)
IMAGE OF MR. KOZIOL'S PRE-JULY 6, 2022 LINKEDIN ACCOUNT
Mr. Koziol's resume states he is both President of Helix Real Estate Management and a partner at Paladin Equity aka Paladin Equity Capital ("Paladin"). The reference to Paladin is important because it links Mr. Koziol to the owners of Pasaterra. It also links Mr. Koziol to another entity, Xi Capital, where Tim Trout, one of two Partners who own Pasaterra, is a principal. Xi Capital maintains widespread holdings throughout the state of California. Mr. Koziol's biography obtained from Paladin's website is shown below.
"Tobin Koziol brings over a decade of experience in commercial real estate and capital markets to Paladin Equity, where he is responsible for the identification of investment opportunities, management of the company’s daily operations. Mr. Koziol also founded Helix Real Estate Management, an affiliate multifamily property management company.
Prior to joining Paladin, Mr. Koziol served as a real estate broker, asset manager, and project manager for a high net worth real estate owner/developer based in West Los Angeles. Mr. Koziol’s development track record includes ground-up and value-add multifamily projects, ground-up luxury residential developments, hotel acquisition and development, and the repositioning of office and retail assets.
An avid golfer and lifelong Lakers fan, Mr. Koziol holds a Bachelor of Arts degree from the University of California, Los Angeles; a Juris Doctor from University of Southern California, Gould School of Law; and a real estate broker’s license for the state of California."
Mr. Koziol is not just a partner at Paladin but it's President.
Mr. Koziol is also a Manager of Nordheim Capital LLC and President of Connexxis whose addresses are also his home address.
Helix's brutal campaign could not be carried out without being sanctioned by Pasaterra. The sixty-day notices to evict are illegal and both Helix and Pasaterra knew this at the time the notices were first left taped on tenant doors and later when the original notices were mailed to tenants and later, when "corrected" letters were mailed to tenants. Though protections ratified by the city of Pasadena which once protected tenants in the city from eviction for non-payment of their rents during the pandemic, have now expired, ALL tenants who are not in arrears in paying their rents remain protected under Los Angeles country law, from eviction until December 31, 2022.
PASATERRA'S LEGAL COUNSEL ADMITS TENANTS ARE PROTECTED UNDER COUNTY LAW AND THAT THE 60-DAY EVICTION NOTICES ARE ILLEGAL
On July 7, 2022, Pasaterra's legal counsel, Anthony Marinaccio of Marinaccio Law and whose firm's website is located at https://www.marinacciolaw.com/ erroneously responded to "Dino," a man he may have thought was a client of his firm but in actuality, a tenant living at one of the properties purchased by Pasaterra and managed by Helix. The following is a screen shot of Mr. Marinaccio's email.
In his email to Dino, attorney Marinaccio admits the tenant is protected from eviction under Los Angeles county laws ratified during the pandemic and designed to protect tenants from eviction and which as stated previously, do not expire until December 31, 2022.
Mr. Marnaccio's email Helix and Pasaterra knowingly issued illegal notices ordering tenants to move at the end of 60-days despite tenant protections remaining fully in place until December 31, 2022, under Los Angeles county law.
This unethical and illegal strategy used by Pasaterra through it's lapdog, Helix, was designed to expulse many tenants through emotional manipulation. Some tenants accepted the offers extended through Helix while other negotiated higher relocation and moving expenses. However, the fear-mongering tactics leveled against tenants who cannot afford to rent apartments elsewhere, subjected them to immense emotional duress and with the daunting challenge of finding new homes in a city, county and state where rents are already exorbitantly high.
RETALIATION
But Pasaterra through Helix has also implemented more severe measures to drive tenants out. Helix no longer responds to requests for repairs from tenants. Under California state law, this is deemed retaliatory. Furthermore, Helix has committed landlord abuse which is also illegal. Here is a brief list of issues the company refuses to remedy and a description of some actions carried out by Tobin Koziol.
- One tenant reports she cannot turn the knob in her bathtub without use of a screw driver.
- Another tenant reports that soapy water from the laundry room frequently backs up into his bathroom's toilet.
- Another tenant reports that numerous incidents in which pipes have leaked, have caused mildew to form and spread on her carpets and walls.
- Another tenant reports he was yelled at by Mr. Tobin and locked out of Helix's portal used to pay the rent. He adds that the check he mailed by certified mail to Helix for the month of July 2022, has yet to be cashed.
- Another tenant reports that Helix never returns her calls.
- Other tenants report Tobin Koziol has been sending emails and left voicemails demanding they respond and advise him what it is they want that will prompt them to vacate their residences.
- Other tenants report they were never called in the month of February 2022 and offered monies to move and complain that the relocation and moving expenses referenced in Helix's 60-day eviction letter are much less than offered to White males and younger tenants. .
For repairs which constitute health and safety and code violations, tenants may contact the Los Angeles Housing Department at (866) 557-7368.
California tenants are legally entitled to rental units that meets basic structural, health, and safety standards and that is maintained in good repair. If a landlord fails or refuses to take care of important maintenance (such as leaky water pipelines, broken heaters, etc.), tenants might have the legal right to pay for the repairs and deduct their costs from the rent aka "repair and deduct." Tenants might also choose to confer with an attorney. Pasaterra's refusal to respond to requests for repairs, decision to impede payment of rent, and refusing to cash checks rent checks are illegal and can be construed as retaliatory in nature.
The Tenant Harassment section of the Rent Ordinance (Section 37.10B) provides a long list of prohibited conduct if the conduct is done with ulterior motive and designed to harass tenants. Section 37.10B(a)(11): Refuse to accept or acknowledge receipt of a tenant’s lawful rent payment; (12) Refuse to cash a rent check for over 30 days. California Civil Code §1499 also requires receipts for rent payments. If tenants are now locked out of Helix's portal and checks are not cashed by Helix, then the property management company is in violation of Section 37.10B. Couple that with the fact that Helix issued an illegal notice ordering tenants to vacate their properties by September 4, 2022.
THE BUYER
PASATERRA HOLDINGS, LLC
As shown below, the new owners of 435 N. Euclid Avenue is Pasaterra Holdings Euclid LLC. Records show Pasaterra establishes a new LLC for each property it purchases and assigns each newly acquired property an individual identifying designation that includes the Pasaterra name.
Some advantages allotted Limited liability companies (LLCs) is the benefits of liability protection and typically used by a single owner or a company with two or more owners such as in the partnership between Tim Trout and Mandy Wang, the owners of Pasaterra Capital. LLCs protect the owners' personal assets from losses, company debts, or court rulings ordered against a company. LLCs also provide some tax benefits since they are taxed differently than a traditional corporation aka C Corporation.
In the following report, note that Pasaterra Holdings Euclid LLC does not reference an address for it's headquarters. Evidently, like Helix, Pasaterra has gone to great lengths to hide the identity of it's business address.
Pasaterra Holdings LLC is aka Pasaterra Capital. The company modestly describes it's "primary business" as the "acquisition and reposition of multifamily properties located in dense urban areas." The subtext to this and with regards to what is transpiring at the properties purchased in Pasadena is the displacement of individuals and families from their homes so properties can be renovated under the guise of gentrification and rents increased substantially. The following description of the company's business is found on it's website.
Pasaterra's website provides biographies about it's Partners, Mandy Wang and Tim Trout.
The following record is a partial record of properties Pasaterra has purchased. 
The California Secretary of State's website discloses a list of Pasaterra's LLCs. A new LLC as disclosed previously, is established each time the company purchases a new property.
The Secretary of State's website verifies that the agent for Pasaterra Capital, LLC is Tim Trout who provides an agent address at 5100 Triggs Street, Commerce, CA 90022.
The agent for Pasaterra Holdings LLC Elizabeth is Mandy Wang and the agent address is also 5100 Triggs Street, Commerce, CA 90022.
The address at 5100 Triggs St. in Commerce, CA is actually the location of ZZ Fashion Corporation dba Daniel Rainin and owned by Mandy Wang whose LinkedIn account is shown below.
TIM TROUT AKA TIM M. TROUT
Tim Trout or Tim M. Trout's LinkedIn account is shown below and his resume discloses he is also a Principal at XI Capital and a Partner at Paladin Equity aka Paladin Equity Capital. As disclosed previously, Tobin Koziol, the president of Helix which is orchestrating the eviction of tenants is also a partner at Paladin Equity.
Paladin's webpage, https://www.paladinequitycapital.com/, describes Paladin as a real estate investor.
Source: https://www.paladinequitycapital.com/
California state records show that Mr. Trout registered Paladin with the state of California though omitted his role at the company. The address he registered for the company is 3865 Fairmeade Rd, Pasadena, California 91107. The address is a private residence and the home of Mr. Trout.
ARON LIU THE INCONSPICUOUS PARTNER
Pasaterra also has a silent partner named Aron Liu who is not referenced on Pasaterra's website though his name appears in state filings and like Tim Trout, uses Ms. Wang's business address as the agent address for Pasaterra Holdings Warwick LLC.
CONCLUSION
Through its affiliation with Paladin Equity and Xi Capital, Pasaterra is part of a juggernaut whose prime directive is to purchase properties, evict tenants, conduct superficial refurbishments, and afterwards, substantially increase the amounts of rent for vacated units. To achieve their purposes, Pasaterra through Helix has proven it will circumvent county laws, deploy fraudulent threats to evict tenants that are a violation of tenant rights and enact vicious fear tactics designed to drive out tenants of newly acquired properties while subjecting tenants to potential economic hardship and extreme emotional duress. The question all residents of Pasadena should be asking is what is the appropriate remedy to rectify the intentional violation of county and state laws perpetrated by Pasaterra through its lapdog Helix?
More to come in the next installment.
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