(To read more on the multifamily market, click here.)
LAFAYETTE, CO-Fowler Property Acquisitions, based in Larkspur, CA, recently paid $15 million for the 160-unit Peakview Apartments in this city near Boulder. The seller was Peak Properties & Development Corp. of Boulder.
This is the second acquisition by Fowler in Boulder in the past year. In May, it paid $7.6 million for the 192-unit Sterling University Peaks, a student housing property next to the University of Colorado in Boulder.
Both of the transactions were handled by Steven R. Rahe and Craig Stack, CB Richard Ellis apartment brokers. Rahe is a first vice president and Stack is a senior associate. Peakview has 42 one-bedroom units, 74 two-bedroom units and 44 three-bedroom units. Its amenities include a clubhouse, community room, swimming pool and some covered parking.
Fowler plans upgrades such as adding washers and dryers, as well as expanding the fitness center, according to Rahe. He notes it is difficult to find land in Lafayette and in Boulder County that is approved for multifamily properties. Because of the barriers-to-entry, Fowler believes the long-term rent growth potential to be strong and plans to buy more property in Boulder County.
Peak Properties developed the property as a Section 42 Low Income Housing Tax Credit Property in 1996. Under the program, 40% of the community was restricted to renters earning 60% of the area median income or less. As an incentive and to offset the discounted rents, the developers of properties in these programs receive income tax credits.
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