Building housing RMI sells for $4.2 million

BOULDER — Developer Lou DellaCava and Realtor Lynda Gibbons have partnered to purchase the building that houses the Rocky Mountain Institute in Boulder.

DellaCava, through DellaCava Development Co. LLC, and Gibbons, through Paragua LLC, both of Boulder, paid $4.16 million for the 14,405-square-foot, two-story building at 1820 Folsom St.

DellaCava now holds a 75 percent interest in the property, and Gibbons holds 25 percent.

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The pair bought the building from a group headed by Andy Bush of Boulder operating as MCV 1820 Folsom Investments LLC.

The institute, a nonprofit research and educational foundation founded by Amory and Hunter Lovins that fosters sustainable use of resources, will continue to rent the space,” DellaCava said.

DellaCava used a 1031 exchange to reinvest proceeds he gained from the recent sale the Two Nine North apartments in Boulder for $93.5 million. The apartments were owned by 2nd Level Investors LLC, a group led by DellaCava and Denver developer Darren Fisk that included several other investors when it was sold to an entity representing the state of Florida’s Retirement System Trust Fund.

1031 exchanges allow investors to sell property and reinvest the proceeds in another property without having to pay taxes that would otherwise be owed on gain from a sale. The payment of capital gains tax is deferred, representing only a potential tax which is not owed unless and until the replacement property is sold in a subsequent taxable transaction.

The taxes may, in some cases, be avoided all together, for example if the replacement property passes through an estate.

“RMI is a stable tenant, and this building appears to be a good rental investment, something to own and manage that would be good for my family,” DellaCava  said.