An investment company that has had to take on large numbers of employees and pay huge salaries to lure new employees has been forced to admit it had a “curse” of “super-sized” condo buildings that had to be scaled down to meet standards set by the California Department of Building Inspection.
The company, Real Estate Solutions Inc, has been battling with the state to improve the state’s code for building codes.
The company has been on a losing streak for years.
It recently hired a new CEO, and its board has been shaken by the firing of its top executives, according to The Wall Street Journal.
Real Estate Solutions, which has offices in New York and Los Angeles, said it was forced to revise some of its condo-building rules because it has a larger staff than required to meet requirements for buildings that exceed the height and width limits in the state.
The new rules were introduced after the company filed for bankruptcy protection and had to lay off tens of thousands of employees.
It had to pay a $6.6 million penalty to the state for failing to meet height and size limits.
Real estate professionals say they’ve had to work with more than 400 workers since the company went into bankruptcy protection in 2014.
The state said it has not received a single complaint of a building that exceeded height and the height of a residential building, according the Journal.
In response to a question on the issue, a Real Estate Solution spokesperson told Reuters, “Our condo buildings have been scaled down from what they were originally designed to accommodate the large numbers and complexity of our workforce.”
The company is now working with state officials to determine the next steps.
Realty Solutions’ chief financial officer, Robert J. Dolan, has since left the company.