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

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