Leo Pustilnikov’s Controversial Real Estate Ventures: From Allegations of Fraud to Skid Row Housing Acquisition
Leo Pustilnikov, a real estate investor with a controversial past, is making headlines once again as he attempts to acquire a portfolio of supportive housing buildings in downtown Los Angeles. Pustilnikov’s previous venture in downtown real estate ended in allegations of fraud and betrayal, but he is now back in the game, looking to purchase 17 buildings that were left in receivership after the collapse of the Skid Row Housing Trust.
The trust portfolio, consisting of 1,200 units, is a crucial resource for the formerly homeless tenants who reside in the buildings and are in need of supportive services due to drug addiction and mental health issues. Pustilnikov, 38, has agreed to pay $10 million for the portfolio and plans to fill the hundreds of vacancies in the buildings to meet the overwhelming need in Skid Row.
However, Pustilnikov’s past actions have raised concerns about his oversight of housing for vulnerable tenants. In a previous deal in 2012, he was accused of trying to inflate the price of a low-income building to secure a larger federally backed loan. The deal fell through, but the allegations from that time continue to follow him as he embarks on this new venture.
Despite the controversies surrounding him, Pustilnikov believes he is well-positioned to address the homelessness crisis in Los Angeles. He has experience dealing with difficult tenant populations, aging facilities, and government subsidies, which he believes will be assets in managing the trust buildings. He plans to partner with a nonprofit organization to provide essential social services to the tenants and maintain the properties as affordable housing.
As Pustilnikov moves forward with his plans, the fate of the trust portfolio remains uncertain, with a judge expected to approve the deal this month. The story of Leo Pustilnikov’s comeback in downtown real estate is one that continues to unfold, with implications for the future of supportive housing in Los Angeles.