DES MOINES, IA – Four Mile Capital, a privately owned real estate investment firm based in Louisville, Colorado, has acquired District @ 6th Apartments, a 213-unit apartment complex in downtown Des Moines, IA. District @ 6th, completed in 2020 and being rented for the first time, consists of 36 studio, 125 one-room and 52 two-room apartments on twelve different floor plans. Greystar, has received the property management contract.
The transaction closed on October 1, 2021 for $ 40,750,000, which is $ 191,315 per unit or $ 228 per square foot. As part of the acquisition, FMC raised over $ 11.6 million in equity from its network of wealthy investors and secured a three-year, interest-free bridging loan with UBS. CBRE's Michael Scott and Michael Duggan represented FMC on the debt assignment, and CBRE's Cy Fox, Matt Bukhshtaber and Ray Hamilton represented the seller on the transaction. This is FMC's third acquisition in the market.
“We were thrilled to get District across the finish line,” said Eric Mallon, one of FMC's founding partners. “We have owned Des Moines suburban markets since late 2018, but have been deliberately wary of downtown purchases until now. With more balance in the submarket, District offered a unique opportunity to acquire a well designed downtown property on a compelling basis that is below market and replacement costs and with a 10 year tax exemption while we continue to expand our local portfolio ” went Mallon. away.
District at 6th is located in a dynamic, urban, and rapidly growing, live work-play neighborhood called the East Village, which is directly across the Des Moines River from downtown. The East Village is home to a number of award-winning restaurants and some of the best shopping in town, as well as the Iowa State Capitol Building. The neighborhood is a short walk from Principal Park, home of the Iowa Cubs of minor league baseball, and also has easy access to several bike paths for exploring the city.
This luxurious apartment complex, carefully designed and built in a clean and contemporary architecture, consists of 36 studios, 125 one-room and 52 two-room units in two four-story buildings with lifts and an underground car park with 216 parking spaces. District at 6th offers an exclusive range of amenities including a swimming pool with sundeck, dog park, courtyard with gas grills and fire pit, 24-hour parcel room, free bike storage, secure underground parking and fully equipped 24-hour condition -modern fitness center. The property also includes 2,639 square meters of vacant retail space on the ground floor that FMC plans to market for rental.
“Since we are buying the pre-stabilized property with no deferred maintenance and limited capital requirements, we will focus on finalizing the lease and at the same time stabilizing operations with our on-site team. We also expect the sub-market to grow strongly over the 10 year hold period to deliver superior risk-adjusted returns for our investors, "said Chris Geer, another founding partner of Four Mile.
