Four Peaks enters Denver with Civic Lofts buy from Centerspace at a steep markdown

Denver’s Golden Triangle has become a tougher place to underwrite apartment deals as new supply has outpaced demand and landlords compete harder for tenants. Concessions are part of the landscape, and a recent sale in the submarket shows how sharply values can reset when leasing momentum weakens.

According to The Real Deal, Centerspace Homes sold Civic Lofts, a 14-story apartment building at 360 13th Avenue, for $30 million. The North Dakota-based owner had acquired the property in 2021 for $63 million, meaning the latest trade came at a 48 percent discount to that earlier purchase price.

The buyer was an LLC tied to Four Peaks Multifamily Partners, a Los Angeles-based private equity real estate firm formed in 2019. Four Peaks focuses on multifamily housing, and the Civic Lofts acquisition is its first in Denver. The firm already has holdings in Broomfield and Fort Collins, giving it an existing foothold in the broader region.

The asset itself has 176 units. At the time of the report, 21 units were being advertised for lease, or about 12 percent of the building. That is above the 7.6 percent vacancy rate reported for the Denver area late last year by the Apartment Association of Metro Denver, as cited in the source report.

Leasing pressure is visible in the incentives now being offered. The report said Civic Lofts is marketing eight weeks of free rent and up to $1,000 in additional concessions for renters who sign within 48 hours of touring. Other owners in the submarket have also leaned on giveaways, including a free-rent sweepstakes and cash promotion at Akin Golden Triangle, a property from Revesco Properties and Alpine Investments.

For Centerspace, the sale is part of a much larger disposition plan. The company has said it aims to sell between $240 million and $245 million of properties by year-end. A dozen properties, equal to 20 percent of its holdings, are slated for sale as it works to cut debt by between $175 million and $190 million. Civic Lofts was the one Denver property included in that strategy, though Centerspace still owns four other buildings in the city.

What comes next will be worth watching on two fronts: whether Four Peaks can improve performance in a submarket still working through excess supply, and whether Centerspace’s broader sales effort produces similar pricing resets elsewhere. In Golden Triangle, the bigger question is how long owners will need to keep paying up in concessions before demand catches up.

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