MLG Capital Buys Iowa Community

The purchase involved 1031 exchange proceeds.

Property at 4454 NW 142nd St., Urbandale, Iowa
The community includes an on-site lake. Image courtesy of MLG Capital

MLG Capital has purchased Walnut Lake, a 180-unit asset in Urbandale, Iowa, a suburb of Des Moines. The previous owner was BH Equities, according to Yardi Matrix.

MLG purchased an interest in the asset through 1031 exchange proceeds from its Legacy Fund—an investment vehicle focused on operating UPREIT units, selling and buying assets via 1031 exchange, as well as ownership structures such as Delaware Statutory Trust and TIC. The fund launched in 2021 and as of May, it accrued more than $1.2 billion in assets across 18 states.

The asset previously traded in 2016 when BH Equities acquired it from Mouton & Associates for $21.3 million. Walnut Lake marks MLG’s 10th acquisition in metro Des Moines and with it, the firm’s footprint expanded to 1,096 units in the area.

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Built in 2016, the community encompasses one- to three-bedroom floorplans ranging from 600 to 1,299 square feet. Apartments feature alarm systems, quartz countertops, as well as high ceilings, among others. Community amenities include a gym, business center, clubhouse, dog park, swimming pool and on-site lake.

Located at 4454 NW 142nd St., the property is some 3 miles north of U.S. Route 6 and roughly 4 miles west of Interstate 35, while downtown Des Moines is 14 miles southeast. Walnut Creek Regional Park is within walking distance of the property.

Delving into Des Moines’ transactional scene

Year-to-date through April, more than 680 units—averaging north of $204,000 per unit—changed hands in metro Des Moines, Yardi Matrix data shows.

The current year’s price per unit bested last year’s figure of more than $119,000 during the same interval. However, investors sold more units in the first four months of 2023, as Yardi Matrix reveals more than 870 units changed hands.

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