Des Moines multi-housing community sells for $17.9M

Chicago, Oct. 20, 2022 – JLL Capital Markets announced today that it has closed the $17.9 million sale and arranged the $12.61 million acquisition financing for The Lyon, a premier, 127-unit multi-apartment complex with 4,500 square feet of commercial space leased by Pura Social Club in downtown Des Moines, Iowa.

JLL represented the seller, Premier Companies, and procured the buyer, Value Add Real Estate Company (VareCo). JLL also worked on behalf of the new owner to secure the 10-year, full-term, interest-only Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender.

The Lyon, constructed in 1970 and renovated in 2016, is an 11-story building featuring studio-, one- and two-bedroom floor plans. The units feature in-unit washers and dryers, quartz countertops and stainless steel appliances. Community amenities include a yoga and fitness studio, a coffee bar, a skyline terrace and bicycle storage.

Upon acquisition, VareCo will commence a value-add business plan that includes the addition of residential units, along with a refresh to the common areas inclusive of a comprehensive gym and lobby renovation, along with providing residents first class co-working space and a new dog wash station.

Situated at 600 E. 5^th St., the property is located in the South/East Des Moines submarket within the East Village district. Within minutes of I-235 and US-69, the property boasts direct access to Des Moines’ top employers, schools, shopping centers and recreation destinations. It is also walkable to abundant shops, dining and nightlife. Additionally, the Lyon is centered around the Iowa State Capital and its memorials.

The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Managing Director David Gaines and Director Kyle Butler along with Managing Director Marcus Pitts and Vice President Michael Minard in the firms Des Moines office. Managing Directors Tony Nargi and Trent Niederberger, and Director William Haass led the JLL Capital Markets Debt Advisory team representing the borrower.

“Our multi-housing investment sales and advisory group is an integral component of our capital markets platform, enabling access to a vast global universe of investors with real-time pricing for property sales that maximizes value and improves the certainty of closure,” said Gaines. “Our unique team approach of ’boots-on-the ground’ representatives in our local office working in conjunction with our capital markets experts offers a client-centric focus on delivering optimal results.”

Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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