Construction of an $11 million apartment project at 520 88th St. in West Des Moines is expected to be completed by fall. Rendering courtesy of TWG

Construction is underway in West Des Moines on an $11 million, 49-unit apartment development whose targeted residents qualify for affordable rental rates.

“In the past few years, there’s been an underinvestment in affordable housing in the Des Moines area, and specifically in West Des Moines,” said Graham Parr, development analyst at TWG, the Indianapolis-based real estate development company developing Pointe on 88th at 520 88th St.

Demand for affordable housing has increased during the pandemic, Parr said. “This project will help satisfy that additional demand.”

The three-story apartment building will include one- to three-bedroom units, 44 of which will be reserved for people earning between 30% and 60% of the area median income, or between $24,700 and $49,302 annually for a family of three. Rental rates for a family of three will range from $618 to $1,233 per month.

Five of the building’s units will be leased at market rates.

Amenities in the building will include a community room and fitness center.

The Pointe on 88th is TWG’s 12th project in Iowa. The company recently completed construction of the Lillis Lofts, a $10 million affordable housing project in Urbandale. Other Iowa projects include Annex on the Square, a new $49 million mixed-income multifamily property that will cover a city block in downtown Cedar Rapids and Federal Point, a $39 million workforce housing property in Davenport.

TWG also developed the 213-unit apartment building at 201 S.E. Sixth St. in Des Moines’ East Village neighborhood. TWG sold the building in October.

Construction of the West Des Moines apartment is expected to be completed by fall 2022.