Spokane-based Fourth Avenue Capital has acquired Lake Tower Apartments in downtown Coeur d’Alene.

The 10-story Lake Tower Apartments building, located at 100 E. Coeur d’Alene, has a total of 41 living units. The building consists of 35 one- and two-bedroom units and six penthouse suites, ranging in size from 1,370 to 2,150 square feet.

Late North Idaho businessman Duane Hagadone developed Lake Tower, which is a block north of the Coeur d'Alene Resort, in 1975.

Davis Vaughn, managing partner of Fourth Avenue Capital, says minor upgrades will be made to the building and rent prices will remain at market value.

“Lake Tower is a generational opportunity … in the heart of one of the most desirable small cities in the country,” says Vaughn, who declines to disclose the purchase price. “With thoughtful upgrades, we will deliver a rental experience that meets the standard set by its iconic location."

Grant Schell, of ExP Realty LLC, negotiated the Lake Tower transaction.

Summit Group LLC, a Coeur d'Alene company in which Lola Hagadone, Duane's widow, is involved, previously owned Lake Tower.

As previously reported in the Journal, Fourth Avenue Capital, a trade name for Fourth Avenue Management LLC, was founded in 2020 by Vaughn, head of acquisitions; Brian Betts, head of capital markets; and Chris Rossman, head of development. Fourth Avenue Capital has operated as a middle-market real estate investment company with most transactions between $10 million and $50 million. 

Fourth Avenue Capital’s portfolio includes apartment, townhome, and student housing developments throughout Washington, Oregon, and Montana. The company has acquired over 1,250 units to date. Its existing assets under management total over $350 million. 

In Spokane, Fourth Avenue Capital owns 940 North, a student housing project near the Gonzaga University campus, at 940 N. Ruby. 

The investment company also is currently developing Liberty Lake-based Signal Point Apartment Homes, a 240-unit luxury apartment complex on the mixed-use Meadowwood Technology Campus at 24085 E. Mission.