Verve, left, a 128-unit apartment high rise at 225 E. Center St. in Des Moines, and Velocity, a 115-unit apartment building at 200 Des Moines St., have been sold to out-of-state investors. Photos courtesy Polk County assessor

 

Hubbell Realty Co. has sold two of its multifamily projects in the Bridge District townhouse and apartment development located east of the Des Moines River and north of Des Moines’ popular East Village district, Polk County real estate transactions show.

Velocity, a 115-unit apartment complex at 200 Des Moines St., was sold for $27.3 million and Verve, a 128-unit apartment high rise at 225 E. Center St., was sold for $24.5 million.
 
The sales highlight the continued demand from real estate investment entities for high-value multifamily products.

“Investors find strong non-coastal markets more acceptable than ever and there is also a growing trend toward favoring [environmental, social and governance]-compliant assets, especially from European investors,” Dallas-based CBRE Group Inc. said in its 2022 U.S. real estate market outlook.

The group predicts that multifamily investment volume in the U.S. will reach a record of nearly $213 billion in 2021 and up to $234 billion in 2022. 

 

In the Greater Des Moines market, more than $378 million in transactions involving multifamily properties had been recorded through Sept. 30, according to Hubbell’s third-quarter market report.

 

The volume of sales is an annual record, as are the 144 sales recorded through the third quarter, according to the report.


 In 2020, there were 97 sales totaling more than $257 million, threport said.

Details of the sale of the two Bridge District multifamily projects include:


• Verve TIC Owner I LLC and Verve TIC Owner II LLC paid $24.5 million for Verve, a five-story apartment building constructed in 2018. The 167,480-square-foot building is located on 2.1 acres. The property, valued a$21 million, includes a parking garage.

• Velocity TIC Owner I LLC and Velocity TIC Owner II LLC paid $27.3 million for Velocity, a four-story, 161,972-square-foot apartment building constructed in 2018. The property, valued at $19 million, also includes a parking garage.

The four limited liability companies are managed by VV Investor Holdings LLC, located in New York.

Hubbell recently began construction on Level, a 114-unit apartment building located in the Bridge District development. When completed, the development is expected to be valued at nearly $112 million and include about 1,000 people living in 477 residences.