At least 11 housing properties in Eugene are operated by some of the six major landlords named in an antitrust lawsuit amended by the U.S. Department of Justice on Jan. 7.
The lawsuit against software company PealPage and landlords Greystar Real Estate Partners LLC, Blackstone’s LivCor LLC, Camden Property Trust, Cushman & Wakefield Inc. and Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC and Cortland Management LLC alleges the rental companies took part in an “algorithmic pricing scheme” that reduced pricing competition among landlords. A press release from the DOJ said these unlawful practices harmed millions of U.S. renters. This is the first civil case where the government is alleging that an algorithm was used to violate federal law.
Crescent Village is among the 11 rental developments operated by Greystar in Eugene.
Allegedly, these real estate companies used RealPage’s anti-competitive pricing algorithms, directly communicated with competitors about sensitive topics such as rents and occupancy, conducted “call around” conversations veiled as “market surveys” to disseminate information about rents, occupancies, discounts and strategies for pricing and participated in “user groups” hosted by RealPage where discussions on modifications to the software’s pricing methodology and the landlords’ related strategies took place.
Doha Mekki, acting assistant attorney general of the Justice Department’s Antitrust Division, said in the release that the DOJ’s efforts in this lawsuit are aimed at increasing housing affordability nationwide.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” Mekki said. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The Justice Department and 10 co-plaintiffs — the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington — amended their complaint to include the six landlord entities for alleged participation in anti-competitive pricing schemes that harmed renters. Combined, these real estate companies operate more than 1.3 million units across 43 states and D.C. All landlords manage multi-family apartment buildings.
The Union on Broadway apartment complex at 480 East Broadway in Eugene is among the 11 developments Greystar operates in the city.
Greystar Real Estate Partners LLC operates 11 properties in the Eugene-Springfield area:
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Crescent Park Apartments, 2940 Crescent Ave.,
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Crescent Village, 2733 Shadowview,
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Parkside Apartments, 4075 Aerial Way,
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Redwood Park Apartments, 4103 W. 18th Ave.,
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River Terrace Apartments, 1150 Darlene Ln.,
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Riverwalk, 470 Alexander Loop,
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The Bailey at Amazon Creek Apartments, 3655 W. 13th Ave.,
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The McKenzie at Crescent Village, 2847 Tennyson Ave.,
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The Tennyson at Crescent Village Apartments, 2850 Shadowview,
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Union on Broadway Apartments, 480 E. Broadway, and
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Willamette Gardens, 3545 Kinsrow Ave.
According to the company’s ‘About’ page, Greystar was founded by Bob Faith in 1993 when he sought to create “a company that operated with the highest integrity and character in delivering world-class services to residents, property owners and investors.” Greystar’s Eugene portfolio includes 357 units of student housing at the Union on Broadway while some of its other properties include family-focused amenities such as play areas and access to clubhouses, pools and gyms.
Landlord Cushman & Wakefield also has a presence in Oregon, with a portfolio of office, retail, warehouse and distribution, manufacturing and high-technology uses. They currently have 19 available listings for these property types in Portland and 42 total listings in the state. The company has been around in its current iteration since 1917 with its founding predecessor firm established in 1784 in Birmingham, U.K.
Simultaneous with the complaint amendment, the Justice Department filed a proposed consent decree with Cortland Management LLC. This consent decree requires the landlord to comply with the government, stop the use of competitors’ sensitive data to set their rent rates and to stop utilizing the same algorithm as its competitors without the oversight of a corporate monitor.
Hannarose McGuinness is The Register-Guard’s growth and development reporter. You can reach her at hmcguinness@registerguard.com.
This article originally appeared on Register-Guard: 11 Eugene properties managed by landlords named in DOJ lawsuit