John Larson Development Sells Iowa Asset
Greysteel brokered the deal.
Greysteel has brokered the trade of Fountain Terrace, a 146-unit community in West Des Moines, Iowa. John Larson Development sold the asset, according to Yardi Matrix data. The property changed hands for $24.8 million, Greysteel Managing Director BJ Connolly told Multi-Housing News.
The community had an occupancy rate of 94 percent at closing. Metro Des Moines’ average rate was 70 basis points below that as of September, according to Yardi Matrix data.
Located at 655 S. 88th St., Fountain Terrace is about 14 miles southwest of the downtown area. West Des Moines, as well as Waukee, Iowa and Ankeney, Iowa, have witnessed “consistent population growth that outpaces the rest of the MSA, providing strong fundamentals for multifamily investors,” Connolly added.
The interchange between interstates 80, 235 and 35 is approximately 5 miles away. Numerous employers operate in the metro and have consistently expanded their footprint, such as Apple, Amazon, Microsoft and American Equity, Connolly mentioned.
The 2024-completed property encompasses four three-story buildings comprising studio and one- to three-bedroom floorplans that average 806 square feet. Common-area amenities include a swimming pool and gym, among other features.
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Emerging housing markets across the Midwest are starting to draw investor attention, as rent growth remains solid and new supply is limited compared with larger metros such as Dallas or Nashville, Tenn., according to the brokerage firm.
Secondary markets start attracting more interest
Metro Des Moines deliveries over the 12 months ending in October amounted to just 2.7 percent of its existing inventory, according to Yardi Matrix data. In terms of sales, more than 2,700 units traded throughout the first 11 months of the year, marking a 29.3 percent growth year-over-year. Conversely, the average apartment price fell 16.7 percent year-over-year, to $103,520.
Notably, a single buyer accounted for nearly all of 2025’s activity. Avenue Living Asset Management acquired 1,936 units across seven assets for roughly $183.9 million, the same source reveals. Professional Property Management sold six of the properties in July, while Ernst Capital Group divested of the last in August.
