Downtown St. Paul’s Lowry Apartments head toward foreclosure as problems pile up

What was once one of St. Paul’s swankiest hotels has become a nightmare residence.

The Lowry Apartments, formerly a posh watering hole for the capital city’s movers and shakers, is now a deteriorating and financially distressed building belonging to downtown’s largest property owner, Madison Equities.

Since the January death of Madison Equities founder Jim Crockarell, tenants of the 11-story building at 345 Wabasha St. N. said security and maintenance problems have rapidly intensified. Crockarell left his real estate portfolio to his wife, Rosemary Kortgard, who put most of the buildings — including the Lowry — up for sale in the spring.

Lender Colliers Funding LLC has since moved to foreclose on the property, saying Madison Equities stopped making its monthly payments in February, defaulting on its $16.9 million mortgage. The lender is also asking the court to appoint a receiver to take over management of the property.

Last week, the city took the rare step of revoking the property’s fire certificate of occupancy, with an order to vacate the building by April if more than two dozen code violations are not addressed. Seven units, the entire third floor and the recently shuttered Gray Duck Tavern space have been condemned, meaning they cannot be occupied without an inspector’s approval.

Tenants of the Lowry say they feel left in the lurch with unresponsive property management, growing safety concerns and uncertainty about what an ownership change would mean for their future.

“I kind of came to the realization that for my own personal safety, I had to get out,” said Megan Thomas, who moved into emergency housing Friday despite having a lease through October.

Thomas was drawn to the Lowry Apartments nearly three years ago because of history of the former hotel, a hotspot for St. Paul’s politicians and celebrities, as well as famous Prohibition-era gangsters. The rent was also relatively cheap, and the downtown location was convenient.

The area started struggling, like many parts of downtown, following the loss of commuter traffic during the COVID-19 pandemic. But over the last several months, tenants described problems piling up even more.

A ground-floor window was shot out in January and never fixed. The building’s elevators and handicap door button repeatedly broke, a concern for Thomas, who has limited mobility. Tenants’ key fobs for the mail room stopped working. A roach infestation exploded.

During a meeting for tenants Wednesday, one Lowry resident told city and county officials that he obtained a concealed carry permit because he felt unsafe in the building’s hallways. Another said her apartment had been ransacked by homeless people, who have been able to enter the building at will since the front door’s lock broke more than a month ago.

“There were multiple red flags over multiple agencies and services that didn’t get connected,” Thomas said. “There was a failure of the system that needs to be investigated and addressed.”

Wednesday’s meeting was organized to connect Lowry tenants with legal guidance and other resources. If the building changes hands through foreclosure, the new owner must honor existing leases. Some tenants have also taken rent escrow actions in attempts to get a court to force repairs.

So far this year, the Lowry has been the subject of 184 police calls or visits — for issues ranging from disorderly conduct to assault and theft — and 27 complaints to the Department of Safety and Inspections (DSI).

The city has the ability to impose criminal citations on property owners, though DSI Director Angie Wiese said such action is not currently being considered since the lengthy process is unlikely to fix the problems quickly.

A spokesperson for the state Attorney General’s Office on Thursday said the agency is taking stock of the situation and assessing possible actions. Tenants can report complaints using an online form.

Kortgard and an attorney for Madison Equities did not respond to a request for comment. The company’s real estate broker declined to comment, though he previously said eight parties had submitted offers for the Lowry.

Representatives of the lender did not say whether they’d identified potential buyers. It was the sole bidder at the foreclosure sale planned for Thursday morning, prepared to use the credit it is owed to eventually take over the property, but the sale was postponed because the public notice had the wrong address for the sheriff’s office.

The Lowry’s market value is estimated at $8.6 million, according to Ramsey County assessors. Madison Equities currently owes nearly $290,000 in property taxes, including penalties for missing a payment earlier this year. Built in 1928, the building contains 134 apartments, about 27,000 square feet of office space and restaurant space.