Part 3/8:

However, the situation has only worsened. Despite the concessions, Fatalone ultimately closed its doors recently, a clear indicator of the deteriorating conditions that have plagued Uptown for years. Along Nicollet Avenue, where Walters has invested heavily, crime rates and safety issues have spiked, leading to an alarming rise in vacancies.

The Economics of Decline

Walters shares that the rental market in Uptown is struggling significantly. Vacancy rates for several residential properties managed by Yellow Tree are over 10%, compounded by the necessity of offering concessions, like one to two months of free rent, just to entice potential tenants. This has resulted in a staggering rent loss between 12% to 18%, making it increasingly difficult to sustain profitable operations.