DES MOINES, IA - Four Mile Capital, a privately-held real estate investment firm based in Louisville, CO, has acquired the District @ 6th Apartments, a 213-unit multifamily community in downtown Des Moines, IA. District @ 6th, completed in 2020 and in its initial lease-up, consists of 36 studio, 125 one-bedroom and 52 two-bedroom units among twelve different floor plans. Greystar, has been awarded the property management contract.
The transaction closed on October 1, 2021, for $40,750,000, which equates to $191,315 per unit or $228 per square foot. As part of their acquisition, FMC raised over $11.6M in equity from their network of high-net worth investors, and secured a three-year, interest-only bridge loan with UBS. Michael Scott and Michael Duggan with CBRE represented FMC on the debt assignment, and Cy Fox, Matt Bukhshtaber, and Ray Hamilton with CBRE represented the Seller in the transaction. This is FMC’s third acquisition in the market.
"We were thrilled to get District across the finish line,” says Eric Mallon, one of FMC’s founding partners. “We’ve owned in the Des Moines suburban markets since late 2018, but have been intentionally cautious about buying downtown, until now. With more balance in the submarket, District represented a unique opportunity to acquire a well-designed asset downtown at a compelling basis, below market and replacement cost and with a 10-year tax abatement, while continuing to grow our local portfolio,” continued Mallon.
District at 6th is located in a dynamic, urban and fast-growing ‘live-work-play’ neighborhood called the East Village, which is just 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 the city, as well as to the Iowa State Capitol Building. The neighborhood is just a short walk away to Principal Park, home of minor league baseball’s Iowa Cubs and also has easy access to multiple bike paths for getting around the city.
This luxury apartment community, carefully designed and built in clean and contemporary architecture, consists of 36 studio, 125 one-bedroom and 52 two-bedroom units in two four-story elevator serviced buildings and includes an underground parking structure with 216 parking spaces. District at 6th offers an exclusive set of amenities including a swimming pool with sundeck, dog park, exterior courtyard with gas grills and firepit, 24/7 package room, free bike storage, secure underground parking, and a fully equipped, 24-hour state-of-the-art fitness center. The Property also includes a 2,639sf vacant retail space on the ground floor that FMC intends to market for lease.
"Because we are purchasing the pre-stabilized property with zero deferred maintenance and limited capital needs, we will focus on finishing out the lease-up while stabilizing operations with our on-site team. We also expect to capture strong submarket growth over the 10-year hold period in order to generate superior risk-adjusted returns for our investors," said Chris Geer, another Four Mile founding partner.