Lincoln Property Company is a privately held real estate company that owns and manages over 230,000 residential units and 45 million square feet of commercial space in the United States. In recent months, the company has been facing a number of lawsuits, including:
- Antitrust lawsuit: In October 2022, a group of renters filed a class-action lawsuit against Lincoln Property Company and other property management firms, alleging that they colluded to artificially inflate apartment prices. The lawsuit alleges that the companies used RealPage’s YieldStar software to share competitively sensitive information and coordinate their pricing strategies.
- Foreclosure lawsuit: In June 2023, a venture of Lincoln Property Company was hit with a foreclosure lawsuit after failing to pay off its nearly $80 million loan on an office complex in Lisle, Illinois.
Antitrust lawsuit
The antitrust lawsuit against Lincoln Property Company is still in its early stages, but it could have significant implications for the rental housing market. If the plaintiffs are successful, it could lead to lower rents for tenants and increased competition among property management firms.
The lawsuit alleges that Lincoln Property Company and other property management firms used RealPage’s YieldStar software to share competitively sensitive information, such as occupancy rates, rent prices, and tenant demographics. This information allowed the companies to coordinate their pricing strategies and avoid competing with each other.
The lawsuit also alleges that the companies used YieldStar to set rent prices at artificially high levels. The plaintiffs argue that the companies were able to do this because they had access to so much information about the rental market.
Foreclosure lawsuit
The foreclosure lawsuit against Lincoln Property Company is a sign of the distress that the office market is facing. The COVID-19 pandemic has led to a shift to remote work, which has reduced demand for office space.
Lincoln Property Company’s loan on the Central Park of Lisle office complex matured in January 2023, and the company was unable to refinance it. As a result, the lender is seeking to foreclose on the property.
Conclusion
Lincoln Property Company is facing a number of legal challenges. The antitrust lawsuit against the company could have significant implications for the rental housing market. The foreclosure lawsuit is a sign of the distress that the office market is facing.
FAQs
Q: What is the antitrust lawsuit against Lincoln Property Company about?
A: The antitrust lawsuit alleges that Lincoln Property Company and other property management firms colluded to artificially inflate apartment prices. The plaintiffs argue that the companies used RealPage’s YieldStar software to share competitively sensitive information and coordinate their pricing strategies.
Q: What could be the outcome of the antitrust lawsuit?
A: If the plaintiffs are successful, it could lead to lower rents for tenants and increased competition among property management firms.
Q: Why is Lincoln Property Company being foreclosed on?
A: Lincoln Property Company was unable to refinance its loan on the Central Park of Lisle office complex, which matured in January 2023. As a result, the lender is seeking to foreclose on the property.
Q: What is the impact of the office market distress on Lincoln Property Company?
A: The office market distress is making it difficult for Lincoln Property Company to refinance its loans and generate income from its office properties.
Q: What can tenants do if they are concerned about rising rents?
A: Tenants can try to negotiate with their landlords or move to a more affordable rental unit. They can also contact their local government officials to advocate for rent control measures.
Q: What can property owners do to protect themselves from the office market distress?
A: Property owners can try to refinance their loans at favorable rates. They can also try to convert their office buildings to other
References:
- Renters sue RealPage, Greystar, Lincoln and other managers | Multifamily Dive: https://www.multifamilydive.com/news/renters-sue-realpage-greystar-lincoln-and-other-managers/634942/
- RealPage, Lincoln Property face class-action in wake of ProPublica exposé – The Real Deal: https://therealdeal.com/texas/dallas/2022/10/21/realpage-lincoln-property-face-class-action-in-wake-of-propublica-expose/
- Lincoln Property, Adventus Hit with More Suburban Office Trouble – The Real Deal: https://therealdeal.com/chicago/2023/06/23/lincoln-property-adventus-hit-with-more-suburban-office-trouble/
