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