In the latest round of trauma for residents, on November 14, 23 residents of Charlestowne North, a 178-unit rental high-rise building located by Greenbelt Lake at the end of Lakecrest Drive, were taken to court for nonpayment of rent by former building owner Charlestowne North Holding Company (CNHC).
The Maryland Business Express website states that CNHC’s business registration was “forfeited for failure to file property return for 2023” on November 13, 2023.
Cases Dismissed
All 23 rent cases were dismissed on November 26 in Prince George’s County District Court. Likely the dismissal resulted from CNHC having no valid status as an entity at the time of the trial. County and state real estate tax records have not yet been updated to record the change of ownership.
Problems Multiplied
The apartments deteriorated rapidly after their purchase by CNHC in January 2023. The company, formed at the end of 2022, failed to fix ongoing problems that then snowballed as CNHC eliminated, reduced or ignored building services. Tenants were left with unreliable elevators, an insecure lobby and minimal staffing. Trash piled up many feet high by the building and leaks plagued the apartments. State and county records indicate the owners did not pay real estate taxes.
Rents were collected but little or nothing was paid for by CNHC. If average rent for an apartment was $1,800 per month and perhaps 150 of the 178 apartments were rented throughout the year, the owners received approximately $3.24 million in rent, paid out as little as possible, transferred the cash elsewhere and went into bankruptcy, leaving Freddie Mac to pay off the mortgage. There was expense to the city for removing trash and trauma for the residents.
Inevitably, many renters moved out. (See News Review issues for September 14, 2023, January 11, 2024 and January 18, 2024.) There is no indication that CNHC was pursued for fraud.
Regulatory Action
The city entered the fray in late 2023 via its inspection program, which requires that landlords retain appropriate certifications and maintain their apartments. With the elevator uncertified, the city withdrew its rental license and the State of Maryland also became involved. Rent could not be collected and bankruptcy proceedings began, culminating in the appointment of the receiver. Residents expressed relief that the apartment building could begin to turn itself around. (See the News Review’s article of March 6, 2024). Though not everything is back to normal, there is progress in the building’s condition.
Receiver/Management Company
Charlestowne North is now managed by Tarantino Properties, appointed as receiver (an apparently flourishing aspect of its business). It has been working to improve the building’s condition, although the elevator is still not certified. Reached for comment, the city’s Director of Planning and Development Terri Hruby confirmed the valid rental license. She said, “There is still an outstanding issue with the certification of the elevators due to a supply issue with parts, but they are on order and Code Enforcement is monitoring the issue.” Unlike its predecessor, Tarantino is keeping up with its obligations, having already paid the 2024 to 2025 real estate tax bill (though 2023 to 2024 remains listed as unpaid).
Occupancy Rising
Current occupancy is approximately 80 percent, with 33 of 178 apartments available (as of early December), according to the list of available rentals on its website. Rental complexes shoot for 90 percent plus occupancy, with apartments vacant only briefly during turnovers. Many residents moved out as the building went downhill, resulting in a low point of approximately 60 percent of apartments occupied in early 2024, but the occupancy number has been slowly increasing since.
Problems Remain
Fast forward to today. The uncertified elevator’s operation is unreliable, leaving mobility-challenged residents inconvenienced or at risk of being stuck – they are careful to take their cellphones on the elevator. A call to the apartment’s assistant property manager revealed that two completely new elevator cars are currently being built by TKE Elevators to replace two 55-year-old cars. Delivery is expected about February.
Utilities
The News Review was told that Tarantino is attempting to charge for utilities separately and in addition to the current rent. Information received from a renter indicates that Tarantino divides utility costs among tenants, despite their having been originally included in existing renters’ leases. Utilities are not individually metered.
Lack of Information
The News Review attempted to verify the resident’s statement. Two calls leaving phone messages and two online inquiry forms to the local office have gone unanswered and a similar set of inquiries to Tarantino’s corporate offices have also been ignored. In all cases, the requester’s affiliation with this newspaper was clearly noted.
The elevator information was obtained from an initial call to the rental office that was answered, although questions on utilities were deflected.
Great Place to Live?
One resident noted that she really hoped all would be resolved because it was a “such a great place to live.” Despite the stress, she said she would see the situation through because she likes the location and because it was relatively affordable, which she saw as a key concern for her fellow residents also living on fixed incomes.
If You Lived Here
Meanwhile, online corporate advertising offers apartments for rent from $1,525 for a studio to $2,250 for “a large two-bedroom.” It makes no mention of utilities. The ad offers two months free rent as an incentive and the advertising states, “Welcome to Charlestowne North Apartments, a classic high-rise community with amenities galor [sic].” There is no mention of ongoing concerns.
(The name of the resident was withheld on request. Thanks to Carlton Green, Esq., and Stacey Crabtree for assistance researching the court cases.)