The Owners of Rincon Center
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The lender foreclosed on Capital Properties of New York in October 2010. The new owner of Rincon Center Apartments is Carmel Partners, Inc. Tenants' leases remain valid. Any owner must abide by the original owner’s contract with the city which maintains the building’s current use until 2021 at least. That includes the BMR Program. Staff consistency is important, and we hope they keep the good staff members who know how things work. One good change already: rent checks can be dropped off at the leasing office.


Capital Properties (New York) bought the residential portion of Rincon Center on June 8, 2007 for $143 million. The center now has two owners based on the east coast. Both have the word "capital" in their names.


Beacon Capital Partners (Boston) bought all of Rincon Center for $275 million in June 2006. They still own the commercial portions of the center.


Rincon Center was owned by the Blackstone Group (90%) and Glenborough Realty Trust (10%). These corporate landlords slashed by half the number of apartments at Rincon in a successful city program that provided affordable housing for low- and moderate-income renters. They also raised the rents of low income tenants at a higher rate than wealthy market-rate tenants -- 25% between 2001 and 2004.

[Entrance Hall] The Blackstone CEO, Stephen Schwarzman, was paid $400 million (over $1 million a day) in 2006, the year he sold Rincon Center. While raising low-income tenants' rents excessively, he set the record by paying the most ever spent for a single New York apartment. According to the 'New York Observer' he paid over $35 million for--not the building--just his apartment at 740 Park Avenue. It has a 60-foot-long entrance gallery (right), a library with paneling older than the United States, and a dining room that seats 48. He hosted a Republican fundraiser at the apartment in April 2007 that his friend Pres. Bush attended.

Schwarzman co-founded the Blackstone Group with its current chief operating officer, Pete Peterson, who was part of Richard Nixon's cabinet. He was paid $212 million in 2006.

[PBS Graphic] The Blackstone Group was part of a PBS 'Frontline' investigative report called "Murder, Money & Mexico." Read correspondent Lowell Bergman's report on Blackstone at the PBS Web site.

[Glenborough Board] In 2005 Glenborough Realty Trust sent illegitimate eviction notices to the poorest tenants at Rincon. The letters said the building might go condo, but it never did. To its credit, the SF Redevelopment Agency stepped in and told Glenborough to rescind the eviction notices.

Glenborough has commercial properties all over the country. This is the Glenborough board: Senator Dianne Feinstein's husband, Richard C. Blum. Patrick Foley of DHL. Laura Wallace, the Chief Investment Officer of the Public Employees Retirement System of Nevada. Robert Batinovich, the Chairman of the Board of Glenborough Realty. Andrew Batinovich, President and Chief Executive Officer of Glenborough Realty. Richard A. Magnuson, an Executive Managing Director at CB Richard Ellis Investors.


The developers and original owners of Rincon Center were Perini Corp. (Massachusetts) and Tutor-Saliba Corp. (Los Angeles). The City of San Francisco sued both companies for fraud. Read the 'Chronicle' article about the suit dated 11-6-02. Another article appeared in the 'Chronicle' on 5-4-03 about the questionable relationship between Perini, Tutor-Saliba, and a Glenborough board member. The 'San Francisco Independent' covered the same story.

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