Brian Dohmen, founder and managing partner of the Chicago-based firm making multiple inroads into downtown St. Paul, has a simple strategy: find residential buildings that were remodeled, heavily invested in and likely overvalued before the pandemic reduced their sales price and upended expectations.

Then purchase them for a steal.

That approach led Altitude Capital Partners to acquire the Degree of Honor building on Cedar Street in June, and the Jax apartments in Lowertown this year, and the R7 Lofts, also in Lowertown, last December, and the Bonnie Jean Flats on East Seventh Street in 2023. The firm foresees rents growing alongside downtown’s residential market, which translates to profits.“At the prices we’re paying, and the rents that we’re getting, the Jax is 100% occupied,” said Dohmen, who grew up in Rosemount. “We’re going to continue to acquire and invest in St. Paul.”

“We’ve built and owned apartments all over the U.S.,” he added. “We’ve kind of repivoted to the Midwest five years ago. Wisconsin, Minnesota and Illinois is our area of interest right now. … There’s some other trades outside of us that are kind of indicative of the market. There’s upsides in St. Paul. The worst is behind us.”

Dohmen’s latest acquisition in downtown St. Paul is the Degree of Honor building at 325 Cedar St., which underwent a heavy remodel under previous owner Madison Equities four years ago and then struggled until it was lost to the bank.

With no small amount of pride, property managers associated with Madison Equities led tours of the Degree of Honor building in 2021, showing off the former office building’s full-scale conversion into 78 housing units.

Degree of Honor changes hands again

Built in the 1960s by an insurance company and women’s organization, the 10-story, granite-exterior “skyscraper” was the first building in downtown St. Paul to boast of its own air conditioning, among other highlights of its era.

The three years after its grand reopening as residences were not kind to the structure, leading some unhappy tenants last August to attend community meetings related to another ailing Madison Equities property in the same general corner of downtown — the troubled Lowry Apartments — which have since been condemned and boarded up by the city.

The death of Madison Equities principal Jim Crockarell in January 2024 appears to have sped the decline for the Degree of Honor, the Lowry Apartments and the company’s many other downtown properties, nine of which were put up for sale together weeks after his passing.

Minnwest Bank acquired the Degree of Honor building last December for $9.58 million in a deed-in-lieu-of-foreclosure sale, but it didn’t hold onto the property for long. The building has been sold again.

In late June, Altitude Capital Partners purchased the Degree of Honor building from Minnwest Bank for $11.1 million, under the name 325 Cedar Acquisition, LLC, according to state sales records. The transaction, involving a new mortgage and limited warranty deed, included a $1.67 million down payment.

The Degree of Honor building held an estimated market value of $15 million in 2022 and $12.57 million in 2025, according to Ramsey County property records.

As a residential apartment building, “it’s a relatively new building,” Dohmen said. “It wasn’t really stabilized until 2023. We’ll probably add some things like an outdoor tenant lounge area. We’re going to market it, lease it. (Rents are) at market right now. St. Paul had positive rent growth last year. We feel like that’s a positive opportunity. (Rents) will go up with the market.”

Four purchases downtown

For Altitude Capital Partners, this is the fourth residential purchase in downtown St. Paul.

The same company this year acquired The Jax, a 48-unit apartment building at 253 Fourth St. E. in Lowertown for $8 million, and last December paid $9 million for R7 Lofts, a boutique 48-unit apartment building at 133 E. Seventh St. in Lowertown, according to Finance and Commerce.

Altitude Capital Partners purchased the Bonnie Jean Flats at 212 E. Seventh St. for $2.39 million in 2023 through a contract-for-deed transaction, which was conducted off-market. The building’s ground-level has been home to the dog grooming and doggie daycare storefront Dreadlocks for Dingoes, which recently announced it will close at that location after nine years.

Dohmen noted that other buyers backed by out-of-state investors are interested in downtown residences.

Reuter Walton sold the 93-unit Donegan Apartments at 241 E. Kellogg Blvd. this year for $14.3 million to Realtor and homebuilder Nathan Landucci of Stillwater-based Landucci Homes in an off-market transaction.

Other Madison Equities properties that were put up for sale in April 2024 include the First National Bank building, the Alliance Center, 375 Jackson Square, the U.S. Bank Center, Empire Building/Endicott Arcade and Park Square Court. Some properties, like the U.S. Bank Center and Park Square Court building, are now under court-ordered receivership.