Nathan Docken and four partners opened the Just/Us restaurant in December 2017. The effort was a “chef collective” where cooks share in the profits and offer a mix of burgers and casual fare alongside more upscale prix-fixe menu.
Robert Marrone Jr. moved into the same building five years ago, hoping his $500-per-month efficiency apartment would provide him with some measure of stability. The 57-year-old lives off Social Security income, and not much else.
Docken and Marrone recently learned the four-story Viking Apartments building at 5 W. Seventh St. had been sold, and an eight-month renovation project would more than double their rent. All 34 apartments will be emptied.
“We’ve got to be out by May 5,” said Marrone, describing his challenges in looking for housing while pacing pensively inside the building’s lobby. “It’s over, man. We’re done. … I feel devastated. I’m in a panic mode.”
For Docken, the news isn’t much cheerier. He plans to shutter Just/Us on April 20. He’s not sure where he’ll go next. Most restaurants don’t become profitable within their first year or so of operation, and he said that despite “a pretty good fan base,” his is no exception.
“We’ve got a couple leads, but I’m a millennial, and banks don’t like talking to me,” said Docken, whose restaurant occupies the former home of Red Lantern sushi and ramen. “When I opened the place I had pretty good credit and a little bit of money to throw at it. Right now I’m just trying to avoid bankruptcy.”
Chuck Repke, a spokesman for new building owner CCI Properties of St. Paul, said the Queen Anne-style building is one of the last of its kind in downtown St. Paul and was overdue for upkeep. Among other issues, it was “grandfathered” into building codes and lacks sprinklers.
Repke acknowledged, however, that an extensive historic renovation will require all tenants out of the building while the work is completed.
“It’s pretty cruddy space right at the moment,” he said. “You want to improve properties. You want to do a historic renovation of the building. You can’t not do the entire building.”
“It has no sprinkler system. It’s got a beat-up old furnace,” he added. “The inspectors have been very kind to the previous owners, let’s just say that. They’ve had to deal with cockroaches and mice. The only way you can save this building is to do a complete renovation. You can’t do one floor at a time.”
Ed Conley, founder of CCI Properties, has been converting dilapidated properties throughout the Twin Cities into commercial and residential destinations for 20 years.
In St. Paul, he recently opened the Schurmeier Lofts Apartments at 330 Ninth St. E., brick-and-timber luxury apartments in the Lafayette neighborhood north of Lowertown.
He also owns the Heritage Rose professional building at 1599 Selby Ave., which is occupied by the Everyday People clothing exchange and Tennis on Selby racquets and apparel.
For Docken, returning to the building after the renovation is complete isn’t a realistic option. Docken said CCI Properties informed the Just/Us chef collective that its rents would be going up as much as four times.
“That’s just nonsense,” said Repke, noting the restaurant had fallen behind on its rent payments and was asked to come current.
PRICIER RENTAL LANDSCAPE
As downtown St. Paul’s cachet grows, so do its residential rents. That’s made some of the area’s dilapidated structures, from neighborhood dive bars to retail establishments and artist studios and even parking ramps ripe for redevelopment into relatively high-end apartment buildings.
While some welcome the addition of upscale new housing, housing advocates worry that the poor will be left behind.
They point to growing homelessness in cities such as San Francisco, Denver, Portland and Seattle as illustrating the dangers of waiting for the real estate market to simply build its way toward stable, affordable rents.
Edward Welter has called the Viking Apartments home for 12½ years. He has no illusions about the types of residents whom he calls friends and neighbors. They’re not easy to relocate, especially at a time of escalating rents.
“A lot of people here have issues,” Welter said. “From what I understand, they didn’t renew anybody’s lease.”
Where will he and others go? Said Welter, “That’s a real good question.”
Marrone said he’s inquired of low-income housing opportunities in the area, and many of them are geared to seniors and the disabled. He doesn’t fit either category. The $500 he paid for rent was about all he could afford.
“I pay the rent and I’m broke,” Marrone said. “If anybody has an apartment for rent, I’ve got nowhere to go.”
Repke sees a bright light at the end of the tunnel.
“They’re going to stay studio apartments, so they’re going to be reasonably priced,” Repke said. “You’re not going to be able to demand a huge price for studio apartments in that location. We assume it’s going to be downtown working people who will be in the building. It’s pretty clear there hasn’t been much work done in a long time.”
