Spruce Properties Expands to Iowa with $57M Portfolio Buy

The six communities comprising some 500 units are scattered across suburban Des Moines, in Ankery, Waukee and Polk City.
Lake Shore

BBK Apartments has sold a six-property residential portfolio in suburban Des Moines, Iowa, for $56.8 million. The transaction marks Spruce Properties’ first buy in the state. JLL Capital Markets represented the buyer and arranged a 10-year, 2.8 percent, fixed-rate Fannie Mae acquisition loan. JLL Real Estate Capital LLC will service the financing.

The portfolio includes the 239-unit Lake Shore, the 122-unit Lake Shore Park, the 12-unit Lake Shore Place and the 16-unit Peachtree communities, all located in Ankery. The 54-unit Sunrise Meadows in Waukee and the 52-unit Saylorville Lakeside in Polk City were also part of the deal.

The assets were delivered between the 1970s and 2017, with Lake Shore being the newest property. Located at 902 E. First St., 12 miles north of downtown Des Moines, Lake Shore Apartments sits amidst a dense retail area adjacent to Interstate 35 and comprises studio, one-, two- and three-bedroom units, Yardi Matrix data shows. The asset was completed in two phases in 2015 and 2017.

Lake Shore Park at 725 N.E. Fifth St. is situated adjacent to Lake Shore and offers one- and two-bedroom units. Barker Apartments purchased the property in 2012 for $6.5 million and sold it in the current deal for $10.9 million.

David Gaines led the JLL team representing the seller, that included Marcus Pitts, Justin Lossner and Michael Minard. Trent Niederberger oversaw financing efforts.

Earlier this year, Spruce Capital Partners acquired a 1,024-unit garden-style portfolio on the western outskirts of Indianapolis from Hampshire Properties, for $133 million. The deal included a $102 million Fannie Mae acquisition loan.