Centerspace sells Denver's Civic Lofts at a 48% loss
The Golden Triangle high-rise fetched less than half its 2021 price as Denver's apartment glut deepens.
Centerspace has sold Civic Lofts, a 14-story apartment tower in Denver’s Golden Triangle, for $30 million — roughly 48 percent less than the $63 million the multifamily REIT paid for it in 2021, according to The Real Deal. The buyer was an entity linked to Four Peaks Multifamily Partners, a Los Angeles-based private equity firm making its first purchase inside the city of Denver.
Why it matters. The deal puts a hard number on how far values have fallen in an oversupplied market. Civic Lofts, at 360 West 13th Avenue, changed hands for less than half its prior price after just a few years — a marker of the repricing hitting even well-located, relatively new towers. It also fits Centerspace’s broader retreat: the company is working through a plan to shed roughly $240 million of assets to cut debt, and this Denver trade is one of the clearest examples of the discounts sellers are accepting to get out.
The numbers. The 176-unit building, completed in 2017, sold for $30 million versus the $63 million Centerspace paid in 2021 — the 48 percent haircut cited by The Real Deal. At the time of the sale, the tower was running around 88 percent occupancy, and operators across the metro have leaned on concessions to fill units. Denver-area apartment vacancy recently hit 7.6 percent, a 16-year high, per the Apartment Association of Metro Denver.
What’s next. For Four Peaks, the purchase extends a Colorado build-out that already includes Broomfield and Fort Collins holdings, and it signals appetite for distressed high-rise product at reset prices. For Centerspace, more sales are coming as it executes its portfolio rebalancing. Expect additional deeply discounted Denver trades as owners who bought at the 2021 peak mark positions to today’s softer market.