Residents of Lowry Apartments in St. Paul in Uncertainty

By Elias DaSilva | September 12, 2024.

Residents of Lowry Apartments find themselves in uncertainty, waiting to know if they can still remain in their building as it is undergoing a foreclosure process and is simultaneously facing city code enforcement actions.

The building, located at the intersection of 4th Street and Wabasha Street, has stood for almost a century, but recently has faced significant issues and challenges because homeless people have been occupying it and causing damage to some parts of the property and removing items from the premises.

Among the most notable damages are: the front window was broken, the lobby door no longer closes, the mailroom key holders have stopped working, and the building’s elevators, which is an 11-story building, have been intermittently out of service. The city has issued a notice of revocation of the building’s occupancy license if conditions do not improve. Some residents have started to leave, while others are hoping for improvements with the city’s intervention.

St. Paul Mayor Melvin Carter III spoke at a press conference after touring the building with tenants. He stated that during his visit he noticed garbage, flies, insect pests, rodents, and feces on the floor, which is a clear manifestation of neglect for the more than 100 residents who still remain there. However, during the week, a truck belonging to the owning company has been seen outside the building.

The city claims that Madison Equities is the owner of the building, the same company that is trying to sell six office buildings located downtown, including the First National Bank building.

However, the Lowry Apartments Building operates under the name of Lowry Building LLC, which has been delinquent in mortgage payments, leading the lender to seek foreclosure on the building.

According to Mayor Carter, a foreclosure sale has been scheduled for September by the judicial agents, which could lead to a potential bankruptcy. Therefore, he has filed a motion in the Ramsey County Courthouse to start the foreclosure process against Lowry as soon as possible. The aim of this measure is that once bankruptcy is declared, tenants will need to pay rent to a court-appointed administrator so that these funds can be used to address all the current problems with the building.

Attorney Kelly Hadac issued a statement on behalf of the owners, which read:

“Lowry has invested millions over the years to maintain and improve the building, as well as evicting a large portion of the tenants who were responsible for the numerous damages.”

“Unfortunately, crime is rampant in downtown St. Paul, where the Lowry building is located. For example, on Sunday, August 25, criminals vandalized and destroyed the building, causing further damage and stole the master keys used by fire inspectors.”

Hadac noted that the Ramsey County Attorney’s Office, which occupied two floors for years, moved out last year, creating a significant vacancy. A major tenant on the first floor, Grey Duck Tavern, also closed abruptly in July.

Mayor Carter has stated that Madison Equities did have the resources but did not act and allowed tenant conditions to worsen. Therefore, he has decided to take action on the situation, starting with repairing the elevators and authorizing city teams to remove garbage. Costs that will, of course, be charged back to the property owner as they are the ones responsible and, due to their poor management, are the ones who have worsened the conditions of the property and its inhabitants.