A real estate development group led by Spokane sports team owner Bobby Brett has bought for $3.4 million the Madison Apartments building, at the southeast corner of Madison Street and First Avenue downtown.

The five-story building has 68 apartment units on four floors above main-floor commercial space.

RenCorp Realty LLC will manage and maintain the apartments, says RenCorp owner Chris Batten, also a member of the Madison’s ownership group, Jefferson Commercial LLC.

“It has quality residential housing and fits well within the workforce market,” Batten says.

Boom LLC, a Spokane advertising agency, which does business as Boom Creative, is the only current commercial tenant in a portion of the 15,000-square-foot main floor.

“We want to keep Boom Creative in place,” Batten says. “We have to figure out how to lease up the rest of the floor.”

The building also has a basement that could be converted to commercial space similar to the space occupied by the Gilded Unicorn at the historic Montvale Hotel building, which GVD Hospitality Management Services Inc. is redeveloping at 1005 W. First.

“It has a big basalt foundation,” he says of the Madison building, which opened in 1905 as the Madison Hotel.

Batten says Jefferson Commercial hopes to complement GVD’s efforts to boost the neighborhood as part of the entertainment district.

“We’ve got the opportunity  collectively to go in and reinvigorate the neighborhood,” he says.

GVD and affiliates led by developer Jerry Dicker own the Odd Fellows Building, at 1015 W. First; the old Music City building, at 1011 W. First; the former Dempsey’s Brass Rail building, at 909 W. First; the Hotel Ruby, at 901 W. First; and the Bing Crosby Theater, at 901 W. Sprague.

Batten says Jefferson Commercial LLC acquired the Madison property in a foreclosure sale through U.S. Bank.

“One of the positive things is it’s now under solid local management,” he says of the purchase.

Prior to foreclosure, the Madison building had been owned by Madison Hotel Apartments LLC, a subsidiary of Spokane Partners LLC, which at one time owned most of the block.

Madison Hotel Apartments filed for Chapter 11 reorganization in U.S. Bankruptcy Court here in 2011.

As reported in the Journal then, U.S. Bank had a secured claim of $5.4 million on the property.

Batten says the building is in good shape. Spokane Partners had completely renovated the building in 2007 and 2008, he says.

“Mostly, we need to upgrade some residential units and do tenant improvements on the main floor,” Batten says. “Other than that, it’s a great building.”

Brett, who is managing partner of the Spokane Indians Baseball Club and the Spokane Chiefs hockey team, also says GVD’s efforts to improve nearby properties make the Madison acquisition even more attractive.

“That’s another reason we’re so excited to be part of the block,” Brett says. “It’s a little arts district close to (Martin Woldson Theater at) the Fox.”

Brett, Batten, and Spokane investor John Pariseau have been involved in more than a dozen property acquisitions downtown in recent years.

The acquisitions include the former Huppin’s building, at 421 W. Main; and the adjacent former Dutch’s building, at 415 W. Main; the Holley Mason Building, at 157 S. Howard; the Numerica Building, at 502 W. Riverside; and the Havermale Block, which is bordered on the north and south by Riverside and Sprague avenues west of Browne Street.