Ironically, the Director of the Prince George’s County Department of Permitting, Inspections and Enforcement (DPIE) acquired his own residential property in the aftermath of the 2008-2009 mortgage derivatives debacle.
The real property on Willes Vision Drive in Bowie, Maryland, owned by DPIE Director Haitham Hijazi, sold in October 2004 for $600,728. Real estate near Bowie and Upper Marlboro was looking up back then. Sadly, Maryland public records show that the couple who owned the house sold it to a family member of Hijazi’s in October 2009 for about half what they had paid–$332,000. The purchaser, Fawaz Hijazi, then sold the house to Haitham Hijazi in July 2012 for $480,000–an apparent profit of $148,000, which might not be enough to retire on but was not a bad sale for the still-difficult market of 2012. Hijazi also got a reasonably good buying price on a house now valued by Zillow at an estimated half-million dollars. Hijazi’s office has not yet returned a call with questions.
Members of Hijazi’s family live in the house. The residential address is also listed in Maryland’s state Department of Assessments and Taxation as the office address of Integrity Professional Contracting, one of the Hijazi family members’ real estate businesses.
Yet more ironically, following up on the previous post on this topic, one can further track the family’s house-flipping business generated from this address. As found in state database real estate transaction listings and Washington Post home sales, typical examples are listed below. The list looks like the previous one. All properties are located in Prince George’s County:
- In October 2012, Integrity Professional Contracting bought the house at 9805 Walnut Avenue in Lanham, Maryland, for $109,000 (foreclosure). In April 2013, the company sold the house for $240,000.
- In August 2012, Integrity Professional Contracting bought the residence at 8516 Potomac Avenue, in College Park, for $148,000 (foreclosure). The company sold the house in April 2013, for $280,000.
- In April 2013, the company bought 5701 44th Avenue, in Hyattsville, for $207,000. Sold that July for $340,000–an affordable price considering its current valuation.
- In August 2013, Integrity Professional Contracting bought another immigrant-owned house, at 2305 Belleview Avenue in Cheverly, for $136,000. The seller of record was William M. Savage, who has acted as a ‘substitute trustee’ in a number of foreclosures. The Hijazis’ company has also bought other properties from, or through, Savage. The company sold the Belleview house in April 2014 for $250,000.
- In October 2013, Integrity Professional Contracting purchased 4814 Snowflower Boulevard, in Oxon Hill, Maryland, from another immigrant householder for $105,500. The homeowner had bought the house in July 2006 for $376,295. The company currently owns this property, according to the state real property database; the owner mailing address is the Hijazis’ residence and company office in Bowie.
- In April 2013, the company bought the property at 4815 Heath, in Capitol Heights, for $41,000 (foreclosure). The company sold the house in December 2013 for $190,000.
Further examples follow the same pattern, visible to anyone who checks. Even without delving deep, the effect on neighborhood property values is obvious. A house that the lender could resell within a few months–apparently, since that’s what the flippers are doing–is instead sold to a house flipper at a loss for the lender and at a terrible loss, sometimes, for the unwilling homeowner. Since the house flipper is dignified by terms like “foreclosure attorney” and “substitute trustee,” all this is nominally at the behest of the bank/lender, even when to the lender’s loss. And the next buyer gets a cut-price house, often without knowing much about the previous foreclosure sale, including the fact that the nominal ‘seller’–the flipper–was actually one of the parties in the foreclosure.
The Hijazi family also owns another real estate entity, this one registered in the SDAT database by the name of Secured Improvements, LLC (a limited liability company). Like Integrity Professional Contracting, Secured Improvements LLC has a mailing address at the Bowie property owned by Haitham Hijazi. According to the LexisNexis business database, Secured Improvements LLC was established in April 2004, as was Integrity Professional Contracting. Its Maryland state filings date from 2011. Those for Integrity Professional Contracting date from 2004.
As with Integrity Professional Contracting, the company designation for Secured Improvements in WaPo house sales is “Corp.” rather than the technically accurate LLC.
Again as with Integrity Professional Contracting, Secured Improvements LLC has established a track record as a house-flipping company. Again, its business pace picked up in the years after the elder Hijazi began working in supervisory positions for Prince George’s County. A quick check of WaPo home sales shows seven home sales for the company from 2006 through 2009. For 2011, eight deals. For 2012, nine. For 2013, thirteen. Then seven, six, and seven respectively for the years 2014-2016.
Like Integrity Professional Contracting, the Secured Improvements company has obtained some houses through ‘substitute trustees’ including Mark H. and Gerard W. M. Wittstadt.
Sad to say, there are more ways to game the system even than the intermingled interests sketched above.
More to come.