Vacancies have hit a cyclical high and financing remains a costly hurdle, but the demand for top-tier multifamily properties in Central Iowa superseded it all with a recent acquisition that reset pricing records for the market.
Locally based Artisan Capital Group teamed up with Eastham Capital, a Florida-based private equity firm, to close a $50 million deal for Cityville on 9th, a 312-unit apartment complex on the southside of Des Moines. The deal not only marked the latest partnership between the two investment firms but also landed the highest price tag paid for a multifamily property in the area since September 2021, a distinction that earned it a 2025 CoStar Impact Award for sale/acquisition of the year, as judged by real estate professionals familiar with the market.
Similar to other markets across the country, Des Moines has struggled to find the balance between an outsize construction pipeline and tenant demand. The area has experienced one of its strongest development periods over the past decade, according to CoStar analysis, helping to drive the average vacancy rate up to about 9%.
Even so, with new construction starts slowly tapering off, Artisan and Eastham are placing bets on Des Moines' historically stable demand and one of the strongest population growth rates in the Midwest. And while the property's 2018 completion makes it one of the newer ones in the city, its new owners are ramping up their investment with plans to roll out a series of upgrades aimed at making Cityville on 9th more competitive with some of the recent additions to the Des Moines area.
"Despite the uncertainty around interest rates, Des Moines’ population growth, robust economy, relatively low new supply and strong underlying fundamentals continue to create a compelling story for multifamily investors looking for stability,” Cy Fox, a CBRE broker involved in the deal, said in an earlier statement. “Cityville on 9th is the largest apartment community in downtown Des Moines that offers an unmatched amenity package and excellent accessibility to all that downtown has to offer.”
About the project: Located on the outskirts of downtown Des Moines, Cityville on 9th at 550 SW Ninth St. was developed in phases between 2015 and 2018 to cater to rising demand among tenants hunting for luxury apartment options. Along with amenities such as a pool and sundeck, fitness center, dog park and coffee bar, the complex is anchored by about 48,000 square feet of ground-floor retail.
What the judges said: The 2024 acquisition was a "major multifamily sale for our market," CoStar Impact Awards judge Bill Wright, a senior vice president for CBRE, said of the deal. "Mixed-use can be a difficult type of project to sell."
They made it happen: CBRE’s Cy Fox, Ray Hamilton and Matt Bukhshtaber represented seller Hubbell Realty Co. in the transaction.
CoStar Market Manager Alyssa Ricca contributed to this report.