Concierge Apartments in Richfield, site of controversial renovation, sold to California firm
Concierge Apartments, the giant complex in Richfield that underwent a controversial but financially successful renovation, has been sold to JRK Property Holdings, a Los Angeles-based real estate investment firm.
Terms werent disclosed.
The sale of the complex was announced Thursday by Soderberg Apartment Specialists, a property management firm in Brooklyn Center that had a minority stake in Concierge. It will continue to manage the complex, which is one of the largest in the Twin Cities.
The current owner, MLG Capital of Brookfield, Wis., and other investors in 2015 paid for an extensive renovation of the 698-unit complex that led to the displacement of hundreds of low-income residents. Apartments units were given luxury-style upgrades and average monthly rent jumped from $750 to $1,200.
Former residents sued for violations of the Fair Housing Act in the handling of the remodeling and the complex became a high-profile example of the erosion of affordable housing in the region.
Owners early this year agreed to a $650,000 settlement, one of the largest of its kind. Former tenants split about $290,000 of that amount, $207,000 went to the Greater Minnesota Housing Fund and the rest to pay legal fees and a tenant advocacy group.
In a statement with Thursdays announcement, Erik Falkman, chief operating officer of Soderberg, said, We took what was a declining asset, from both an ownership and community standpoint, and turned it into a great place thats both an attractive place for people to live and a healthy, positive asset to the surrounding neighborhood and the entire city of Richfield.
With the purchase, JRK is entering the Minnesota real estate market for the first time. The companys portfolio of multifamily properties includes more than 32,000 units with a value of $6 billion stretching across 20 states.
Evan Ramstad 612-673-4241