Wakonda Village marks Eastham’s second acquisition with local operating partner Artisan Capital Group

Eastham Capital, a private equity real estate firm dedicated to providing superior, risk-adjusted returns to investors through the transformation of undervalued multifamily real estate, has partnered with Artisan Capital Group, a Des Moines based multifamily owner-operator in the acquisition of Wakonda Village, the largest multifamily property in the Des Moines area at 382-units.

South Florida-based Eastham Capital has invested in the deal through its current fund, Eastham Capital Fund VI, LP. Artisan Capital Group has co-invested with Eastham and will oversee the day-to-day management. 

“We are thrilled to partner on another deal with Artisan Capital Group to expand our presence in the growing community of Des Moines,” said Matthew Rosenthal, founder and managing director of Eastham Capital. “What’s unique about this submarket is that it is supply-constrained with very few apartment communities under construction or even planned. We couldn’t be happier with the acquisition of Wakonda Village and to be working with Artisan on another deal.”

Wakonda Village is 96% occupied, with in-place average rents of $813/month. The previous owners upgraded the interiors of 201 units and implemented many desirable amenities, including a recently renovated clubhouse, pool, fitness center, business center, coffee bar, dog park, and courtyard/picnic area. Artisan will focus on improving the unrenovated units and implementing a utility billback program, ensuring a modern and comfortable living environment.

Constructed in phases from 1951-1977, Wakonda Village is located at 1800 Watrous Ave and consists of one- and two-bedroom units ranging from 530 to 660 square feet. The property is ideally situated just one block from Fleur Drive, the primary thriving retail corridor that connects Des Moines International Airport to downtown Des Moines. The property is also located across the street from the acclaimed Wakonda Golf Club, which hosts the PGA Tour Champions Principal Charity Classic each June.

The Mogharebi Group (TMG) has advised a Colorado-based private investment group on its sale of Fireside Village, a 180-unit multifamily community in Omaha, NE to ARTISAN Capital Group.

The multifamily transaction, one of the largest by unit count to close in metropolitan Omaha this year, according to CoStar data, represents the seller’s exit and the buyer’s entry into the Nebraska market, according to Mogharebi Vice President Scott Koethe. 

“Omaha benefits from wonderful fundamentals – great schools, strong local economy and safe neighborhoods, which has resulted in a buyer pool that is large and growing,” said Koethe, an Omaha native.   “Wanting to divest itself of its multifamily holdings to concentrate on medical office, our client engaged us to leverage our significant relationships with these buyers to sell the property.   As a result, we were able to generate 18 offers and ultimately went with the most qualified buyer in ARTISAN Capital Group.”  

Fireside Village is the first acquisition in Nebraska for Chicago & Des Moines-based ARTISAN Capital Group, whose portfolio includes more than 6,500 multifamily and student housing units throughout the Midwest and Nevada.  In partnership with Guardian Capital, the transaction, which needed to close before the July 4th holiday, was the upleg of a 1031 Exchange that included the assumption of an attractive sub-5% Agency loan with five years remaining on the term, according to Koethe.

“This was a very complex transaction with a lot of moving parts and a very tight deadline,” Koethe said.  “Our proprietary 1031 Exchange platform combined with our experience with the complicated loan assumption process, allowed us to close on time and help both parties meet their business objectives.”  

 “ARTISAN is thrilled to enter the Omaha market with the acquisition of Fireside Village, soon to be rebranded as Wildewood Commons.  We have been blown away by the warm reception from the City of Ralston and look forward to contributing to the local community in a positive manner,” added Ryan R. Cahalan, “The ARTISAN Team is eager to get to work on making renovations to the property and we look forward to growing a portfolio of apartment communities throughout the Omaha metro.”  

Located at 8214 Wilson Dr., in Ralston, a popular suburb less than a 15-minute drive from Downtown Omaha, Fireside Village offers a diverse mix of floor plans ranging from studio to two-bedroom apartment homes housed in 11 residential buildings on a 5.5-acre site.   Community amenities include a sauna, fitness center, playground, dog park, business center, detached garages, & laundry facilities.    The property was 75% occupied at closing. 

Built in 1972, only one-third of the units have been renovated providing the buyer with a tremendous value add opportunity, according to Koethe.  

CHICAGO, IL – June 4, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announces it has closed the sale of and arranged financing totaling $51.135 million for a three-property, 335-unit apartment portfolio in downtown Kansas City, Missouri.

HFF marketed the property on behalf of the seller, Steadfast Income REIT, Inc., and procured the buyer, ARTISAN Capital Group.  Additionally, HFF worked on the new owner’s behalf to secure a $38.85 million, seven-year, fixed-rate Fannie Mae loan through HFF’s risk-transfer joint venture with M&T Realty Capital Corporation, as well as $12.285 million in joint venture equity from Westminster Capital LLC.  In addition to funding the acquisition, proceeds from the financing will be used to implement the new owner’s value-add strategy by improving operations and management.

The properties in the portfolio are Library Lofts, a 118-unit building located at 1004 Baltimore Avenue; Stuart Hall, a 115-unit building located at 2121 Central Street; and EBT Lofts, a 102-unit building located at 1601 Walnut Street.  The historic buildings, which were originally built between 1899 and 1910, are situated within two of Kansas City’s most in-demand downtown locations, the Library District (Library Lofts) and the Crossroads Arts District (Stuart Hall and EBT Lofts), providing residents with convenient access to major area transportation arteries and some of the city’s trendiest of retail, dining and entertainment amenities.  The adaptive re-use properties comprise a mix of loft-style units ranging from studio to three-bedroom floor plans totaling 333,180 rentable square feet.  In addition, the buildings include 21,130 square feet of ground-floor commercial space.  The portfolio is 94 percent occupied overall.

The HFF investment advisory team representing the seller was led by senior director David Gaines, managing director Marty O’Connell and senior managing director Danny Kaufman.

HFF’s debt placement team representing the new owner was led by managing director Matthew Schoenfeldt and director Gregory Napper.