Cross-Post By SaveBelmarPark.com (updated to correct “by Save Belmar Park Community Action”) Metro Denver apartment rent inflation has outstripped income gains by a higher margin than in any other major city in the U.S. since 2009, according to a study from Clever Real Estate subsidiary Real Estate Witch. From 2009-2021 rents in the Denver area have increased 82%! In an amazing coincidence, numerous national landlords active in the Denver area apartment market have been named in an alleged nation-wide rent gouging scheme in violation of the Sherman Antitrust Act. These landlords are accused of sharing pricing data and using a common software package called RealPage to set rent levels and eliminate price competition on rent. All defendants deny wrongdoing and are vigorously defending against these unproven allegations. One of these landlords, Kairoi Management aka Kairoi Residential, is also the developer of the habitat-destroying Belmar Park West apartment complex. Despite the widely available public information regarding Denver area rent inflation and alleged illegal wide spread rent collusion, Lakewood’s Strategic Housing Plan pegs annual rent inflation at only 3%! It almost seems as if Lakewood is hiding something. But what? Is Lakewood aware that some people may be unhoused due to (alleged) illegal rent gouging? What does Lakewood plan to do if defendants do not prevail and have to pay significant damages? If Kairoi can’t pay the damages and also fund 777 S Yarrow construction, will they abandon the 777 S Yarrow project and leave an unfinished construction project? What then? Maybe Lakewood should require audited financial statements from all developers in the city including private companies such as Kairoi? And require financial reserves sufficient to survive any major lawsuits. Kairoi sells limited partnership investments in the form of unregistered securities. Once a building is completed, they sell it a few years down the road and close out the partnerships. Like the Edison building that sold in 2019. Suppose they have to pay damages to former tenants of the Edison building. Will the former limited partners be willing to pay those damages? Not likely. Can they then assess those damages to partners in another building. Not likely. Yes, this is speculation. But it will not end well. How did these companies get into this mess? My guess, this is only that, is that at least some of these entities ignored legal advice. There is a long list of defendants. Do you seriously think none of them asked their staff attorney(s) for advice regarding their use of the RealPage software? Don’t assume their business insurance will cover it. Some defendants are already complaining their insurance will not pay their legal fees. Here is a partial list of the parties included in the combined rent gouging lawsuits: ALLIED ORION GROUP, LLC, Defendant Apartment Income REIT Corp, Defendant Apartment Management Consultants, LLC, Defendant Avenue5 Residential, LLC, Defendant B/T Washington LLC, Defendant BH Management Services, LLC, Defendant Bell Partners Inc., Defendant Bozzuto Management Company, Defendant Brookfield Properties Multifamily LLC, Defendant CH Real Estate Services LLC, Defendant CONAM Management Corporation, Defendant CONTI Texas Organization, Inc., d/b/a CONTI Capital, Defendant CWS Apartment Homes LLC, Defendant Camden Property Trust, Defendant Conti Capital, Defendant Cortland Management, LLC, Defendant Crow Holdings, LP, Defendant Dayrise Residential, LLC, Defendant ECI Group, Inc., Defendant ECI Management, LLC, Defendant Equity Residential, Defendant Essex Property Trust, Inc., Defendant FPI Management, Inc., Defendant Greystar Management Services, L.P., Defendant Greystar Management Services, LLC, Defendant Highmark Residential, LLC, Defendant Independence Realty Trust, Inc., Defendant Kairoi Management, LLC, Defendant Knightvest Residential, Defendant Lantower Luxury Living LLC, Defendant Lincoln Property Company, Defendant Lyon Management Group, Inc., Defendant MidAmerica Apartment Communities, Inc., Defendant Mission Rock Residential, LLC, Defendant Morgan Properties Management Company, LLC, Defendant Pinnacle Property Management Services, LLC, Defendant Prometheus Real Estate Group, Inc., Defendant RPM Living, LLC, Defendant RealPage, Inc., Defendant Related Management Company L.P., Defendant Rose Associates Inc, Defendant Sares Regis Group Commercial, Inc., Defendant Security Properties Inc., Defendant Security Properties Residential, LLC, Defendant Sherman Associates, Inc., Defendant Simpson Property Group, LLC, Defendant TF Cornerstone Inc, Defendant THOMA BRAVO, L.P., Defendant The Related Companies L.P., Defendant Thoma Bravo Fund XIII, L.P., Defendant Thoma Bravo Fund XIV, L.P., Defendant Thrive Communities Management, LLC, Defendant Trammell Crow Residential Company, Defendant UDR, Inc., Defendant WINNCOMPANIES LLC, Defendant Windsor Property Management Company, Defendant WinnResidential Manager Corp., Defendant ZRS Management, LLC, Defendant United States of America, Interested Party Joshua Kabisch, Plaintiff The list may contain errors, be incomplete or may not reflect recent changes. Please attend Lakewood City Council Meetings and convey your concerns. https://www.lakewood.org/Government/Upcoming-City-Meetings And please remember to ask that Lakewood acquire the parking area at 777 S Yarrow St via Eminent Domain to establish that buffer space with the park. Visit SaveBelmarPark.com
