Boise developer Greg Ferney envisioned an apartment complex at the site of a former health club near the Boise State University campus.
His Storage Development company drew up plans for a four-story, triangular-shaped building with 125 apartments at 1250 S. Division Ave. Ferney modified his design to appease neighbors and won approval from the City of Boise.
Now he’s looking to sell the property and the development rights. But Ferney isn’t saying why.
Colliers International has issued a call for offers for the project at the site of the Park Center Health and Racquet club.
The offering lists a sale price of $4.5 million for the 2.9 acres of land and development rights. That equates to $36,000 per apartment, according to the listing. Offers are due by 5 p.m. on Sunday, Oct. 4.
The property is owned by Bay Shore Oil Company of Huntington Beach, California. An affiliated company, D.D. Dunlap Cos., owns the Boise Spectrum.
“There’s a lot of momentum in the downtown core where there’s been good rent growth,” Clay Anderson, one of the listing agents, said by phone. “And the Parkcenter area is an ever-improving area. Capturing a project that’s close to the Greenbelt, near downtown, has a lot of appeal for a lot of parties.”
Anderson said he’s not at liberty to disclose why the project is up for sale before getting built. Ferney did not respond to calls from the Idaho Statesman.
Boise developer Clay Carley said it’s not unusual for a developer to identify a site, draw up plans and obtain approval before selling to someone else. Carley, who is not involved in the project, said there is money to be made by adding value to a property that way.
“You take your cash out, you get land value, plus hopefully you’ve getting a premium for whatever additional value is added to it, whether it’s architectural work, engineering or whatever it might be,” Carley said by phone.
Anderson said there’s strong interest in the project on 2.9 acres at the east end of West Beacon Street, where it intersects with West Parkcenter Boulevard. Besides the apartments, the project includes 5,500 square feet of office space, 3,600 square feet of self-storage space and 153 parking spaces.
The site has been approved but still needs to go through a design review by the city of Boise.
Loggers Creek, a tributary of the Boise River, separates the property from the six-story Holiday Inn Express at 475 W. Parkcenter Blvd., built in 1985.
Two years ago, there were plans to open a Crunch Fitness center at the site. Those plans were later abandoned.
If built, the apartments would continue Boise’s downtown construction boom. Several housing projects are now under construction in and near downtown:
▪ Two buildings, on Grove Street between 5th and 6th streets, will provide 174 apartments.
Forty-five of the 60 apartments at 116 S. 6th St., will rent to low-income people. Fifty of the 114 apartments at 512 W. Grove will rent to workers earning close to the area median income.
A group of developers led by Carley is building these apartments, which are expected to be finished in winter 2021.
▪ River Caddis Development Corp. of Lansing, Michigan, is building an 8-story building with 173 apartments at 3rd and Myrtle Streets. It is projected to be finished in July 2021.
▪ Roundhouse, of Los Angeles, is building 161 apartments at 4th and Broad streets in a development called The Cartee. It’s expected to open in late 2021.
▪ Roundhouse is also planning 400 apartments at 27th Street and Fairview Avenue. The first phase of 130 apartments is expected to break ground in mid-2021.
▪ Gardner Co. is building a six-story building with 236 apartments at 749 E. Park Blvd. It’s expected to be finished in July 2021.
▪ The Vanguard at 6th and Front Street will have 76 apartments. Visum Development Group of Ithaca, New York, is expected to finish that project in August 2021.
Collegiate Development Group of St. Louis planned to build a seven-story building with 258 apartments at Avenue A and Myrtle Street, but has not begun work.