Strategic Multifamily Acquisitions in Davenport, Iowa
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
- Strategic multifamily acquisition combining affordable and market-rate housing.
- Complex financing structure creating opportunities through assumable municipal debt.
- Experienced joint venture partnerships supporting acquisition and asset management.
- Financial repositioning strategy unlocking value through debt forgiveness and refinancing.
- Long-term investment approach emphasizing occupancy, cash flow, and investor returns.
Results
- 177 apartments across five properties acquired in Davenport in 2020.
- 25%+ basis reduction following full municipal debt forgiveness in 2024.
- 20% of units became eligible for market-rate rents.
- 80% of original investor equity returned through July 2024 refinancing.
- 7% annualized cash yield supported by strong portfolio occupancy.