Peloton apartments finally will become luxury condos
A decade after the project broke ground, Peloton West in Boulder will fulfill its destiny as a luxury condominium project. Rented as apartments after a flailing economy took wind out of the development’s sails, 195 units are being converted to condominiums to be put up for sale this fall.
The community at 38th Street and Arapahoe Avenue opened in 2008 with phase 1: 190 for-sale units costing between $300,000 and $900,000. The housing crash delayed a second phase. Two building shells sat vacant until 2012, when developer CityView, of Los Angeles, decided to rent out the remaining units until the market could support condo sales, the managing director told the Camera at the time.
With attached dwellings — townhomes and condos — fetching $475,000 on average in the city of Boulder, the time is right, according to D.B. Wilson with Re/Max of Boulder, who provided the data for sales through July of this year.
Peloton’s studio, one-, two- and three-bedroom homes are priced starting at $450,000, with units ranging from 692 to 1,828 square feet. The largest, a penthouse, will list for $1.3 million.
CityView is spending more than $5 million renovating the complex, which includes a community center with rooftop pool and views of the Flatirons. Sales to Peloton renters are underway, and director of sales Tony Prock said interest, inside and outside the community, has been strong.
“We field calls on a regular basis from the brokerage community who have clients that want to get in,” Prock said. “They’re adamant: ‘When can we get
in? We have clients who are ready to buy.'”
Demand for attached units is brisk throughout the city of Boulder, Wilson said. Townhomes and condos are spending, on average, just 47 days on the market and going for slightly above asking price.
Supply remains tight. The city has 3.1 months of inventory in attached dwellings, up slightly from this time last year but below the six months typical of a more balanced local market.
The addition of 195 units will be the biggest bump to the city’s housing stock in recent years. Builders largely stopped constructing condos in the past 10 years after Colorado’s construction defect law left them open to a number of lawsuits from owners and sky-high insurance costs.
More conversions may be on the horizon, as older projects age past the statute of limitations for defects. Many apartment projects of the past few years were built with that workaround in mind, said Jay Kalinksi, co-owner of Re/Max of Boulder.
“The plan was to wait out the statute of limitations and then convert it,” he said. “There is overwhelming demand for condos. People would really like to purchase, and there just is not that product” on the market.
Peloton’s condos won’t be available all at once. Peloton will honor all leases, which run through June. Sales to tenants end this month and will then be opened to current owners, friends and family and “VIP brokers” representing preapproved buyers working with preferred lenders Elevations Credit Union and Centennial Bank, now a division of Citywide.
Remaining units won’t be available to the general public until the end of September, Prock said. CityView expects it will take at least two years for all the condos to sell.