Niwot Wheel House building changes hands

When the building at 101 2nd Avenue went up for sale, Niwot's Cornelia Sawle saw it as an opportunity to invest in the town she loves.

Sawle, who owns and operates the Niwot Inn & Spa just down the street, also owned commercial property in Ohio, which was recently taken by the local government there through the eminent domain process for public improvements. To avoid capital gain taxes resulting from the compensation paid to her, she had to quickly find a replacement property that was also a bar-restaurant operation. A replacement property would allow her to defer capital gain taxes by investing the proceeds of the Ohio sale in a similar-use property through a section 1033 exchange, which is similar to a 1031 exchange under the IRS Code, but more restrictive.

The long-rumored transaction closed on Sept. 26, with a sale price of $2.25 million. Sawle noted that the seller, 3601 Park Ave, LLC, out of Boulder, was itself involved in a 1031 exchange transaction with respect to property it purchased in the Winter Park area, which led the seller to put the Niwot property, which it has owned since 2018, on the market.

"I'm really excited about it," Sawle said. "I love the bike shop (Niwot Wheel Works) and I want it to continue." She also values The Wheel House bar and La Musette, the food truck currently operating on the property, and doesn't plan any immediate changes. Eventually she would like to see more food options, and is enlisting the help of her son-in-law, Pete Brandes, who has extensive experience in local restaurants.