Crescent Lofts
← Back to Results
Project Links
2020Year Acquired |
177Total Units |
5Total Properties |
In the fall of 2020, General Capital partnered with Rhumbline Real Estate Partners (formerly Ballast) and Artisan Capital Group to acquire 177 units of market-rate and affordable housing in Davenport, Iowa. The acquisition carried assumable city debt that was fully forgiven in 2024, reducing our basis by more than 25% to just $55,000 per unit - well below replacement cost. In the same year, affordability restrictions expired on roughly 20% of the units, giving us the ability to move those rents to market. Together, these two events unlocked significant value, which allowed ownership to execute a supplemental loan in July 2024 that returned 80% of the original equity to investors. Today, the property remains welloccupied and continues to deliver exceptionally strong cash yields.
Properties include: Sieg Iron Lofts, 5th Street Lofts, Davenport Lofts / Waterloo Lofts, and Kerker Lofts
KEY THEMES
- The portfolio focuses on delivering both market-rate and affordable housing in a stable Midwest market.
- The transaction required navigating a highly complex deal structure, limiting competition and creating opportunity.
- Strong joint venture partners provided local expertise and on-the-ground execution.
- The investment strategy centered on unlocking long-term value through operational and financial repositioning.
RESULTS
- The partnership acquired 177 units in Davenport, Iowa in 2020 through a joint venture structure.
- City debt was fully forgiven in 2024, reducing the basis by over 25% to approximately $55,000 per unit.
- Expiring affordability restrictions allowed a portion of units to transition to market-rate rents.
- A supplemental loan in 2024 returned approximately 80% of original investor equity.
- The property maintains high occupancy and delivers strong ongoing cash yields, including a 7% annualized return.
Related Residential Projects
