Four Peaks Buys Discounted Apartments Amid Denver Oversupply

A North Dakota-based apartment landlord offloaded a multifamily building in Denver’s Golden Triangle for a fraction of its previous sale price.

Centerspace Homes sold the Civic Lofts apartments at 360 13th Avenue for $30 million, the Denver Business Journal reported. Centerspace bought the property in 2021 for $63 million, making the latest sale price a 48 percent discount from its previous value.

The buyer was an LLC linked to Four Peaks Multifamily Partners, a Los Angeles-based private equity real estate firm formed in 2019. The company focuses on multifamily residential real estate, according to its website. The acquisition marks FPM’s first in the city of Denver, though it has already broken into the region with holdings in Broomfield and Fort Collins.

The disposition is part of Centerspace’s larger plans to sell between $240 and $245 million worth of properties by the end of this year, The Real Deal reported last month. A dozen properties, or 20 percent of its holdings, are slated to be sold in an effort to reduce its debt by between $175 million and $190 million. The plans included the sale of one Denver property, which ended up being the Civic Lofts. It still holds four other buildings in the city.

The 14-story Civic Lofts has 176 units, with 21 currently advertised for lease, the publication said. That equates to 12 percent vacancy, which well above the 16-year high of 7.6 percent in the Denver area late last year, per Apartment Association of Metro Denver data.

Units delivered outpaced demand in Denver’s Golden Triangle submarket in recent years.

Revesco Properties and Alpine Investments offered a free rent sweepstakes and cash giveaway at their Akin Golden Triangle property. Civic Lofts is offering concessions of 8 weeks of free rent and up to $1,000 of other concessions for those who sign leases within 48 hours of touring.

— Chris Malone Méndez