THE CIM GROUP: In the Headlines

The report details a pattern of negative publicity surrounding CIM Group, focusing on tenant mistreatment in Virginia, DC, and Colorado; the gentrification of minority neighborhoods in Los Angeles and New York City; construction defects in luxury towers; and ethically questioned business ties to Donald Trump and Jared Kushner. It further highlights the resulting pressure on public pension funds, such as CalPERS, to divest from the firm due to these controversies and past allegations of bribery involving placement agents.

• Tenants at CIM-owned properties in Alexandria, Virginia, Washington, DC, and Denver, Colorado, have reported severe maintenance failures and predatory practices. At the Southern Towers in Alexandria, issues include "mold, pest, and other maintenance issues" and a case where a tenant suffered severe burns from a stove blaze, subsequently receiving an eviction notice. In Denver, tenants at the Lex at Lowry reported "yellow water" from sinks and a lack of response from property management.
• CIM Group has faced significant community opposition for development projects that critics argue drive gentrification and displace disenfranchised populations. In Los Angeles, the firm was accused of a "hostile takeover" of African-American retail space at the Baldwin Hills Crenshaw Plaza, leading CIM to abandon the purchase. In New York City, community groups and the Chinatown Working Group opposed luxury high-rise plans on the Lower East Side, arguing they would lead to displacement.
• The firm has been linked to dangerous construction and irresponsible development. A luxury tower condo board in New York City sued CIM for "1,500 construction and design defects," including electrical explosions and faulty elevators. In Los Angeles, a judge ruled that CIM improperly demolished a historic building that the city had required to be preserved.
• CIM Group maintained extensive business ties with Donald Trump and Jared Kushner, including at least seven real estate deals. This included the purchase of the Trump SoHo Hotel, where CIM was contractually obligated to pay the Trump Organization a "cut of the hotel’s revenue" even after Trump became president, raising concerns regarding the domestic emoluments clause of the Constitution.
• Public pension funds, including CalPERS, CalSTRS, and funds from seven U.S. states, faced public pressure and political scrutiny due to their investments in CIM. CalPERS specifically increased its scrutiny of the firm, writing down an investment after concerns over "valuation methodology" and scrapping a plan for a tower in Sacramento. Additionally, CIM was involved in a bribery scandal where it paid Alfred J.R. Villalobos nearly $16 million in fees to secure pension investments.
• CIM Group's relationship with the bakery chain Tartine in San Francisco involved the firm providing investment and executive leadership, which critics link to the gentrification of California neighborhoods.

APA

Private Equity Stakeholder Project (2023). THE CIM GROUP: In the Headlines. https://pestakeholder.org/wp-content/uploads/2023/11/PESP_Report_CIM-Headlines_2023.pdf

Chicago

Private Equity Stakeholder Project. THE CIM GROUP: In the Headlines. 2023. https://pestakeholder.org/wp-content/uploads/2023/11/PESP_Report_CIM-Headlines_2023.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=THE CIM GROUP: In the Headlines |date=November 2023 |url=https://pestakeholder.org/wp-content/uploads/2023/11/PESP_Report_CIM-Headlines_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2023cim, author = {{Private Equity Stakeholder Project}}, title = {{THE CIM GROUP: In the Headlines}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = nov, url = {https://pestakeholder.org/wp-content/uploads/2023/11/PESP_Report_CIM-Headlines_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }