$10.55M in financing secured for Iowa multi-housing community

DENVER, Dec. 18, 2023 – JLL Capital Markets announced today that it has arranged $10.55 acquisition financing for Harbach Lofts, a class-A, 103-unit, boutique mid-rise apartment complex located in Des Moines, Iowa.

JLL worked on behalf of the borrower, VareCo, to secure the fixed-rate, ten-year Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender.

Harbach Lofts was originally constructed in 1906 as a furniture warehouse and converted to the 103-unit luxury apartment community in 2017. The community includes two five-story buildings featuring studio, one-, and two-bedroom floor plans, and units feature top-of-market finishes, such as stainless-steel appliances, original hardwood and polished concrete floors, quartz countertops and full-size in-unit washers and dryers. Community amenities include a fully equipped fitness center, a clubroom with kitchenette, a courtyard with lounge seating and BBQ areas, bicycle lounges and secure package lockers. The property also offers 6,384 square feet of ground floor retail that is 100% leased.

Situated at 300 SW 5th Street, Harbach Lofts is located in Downtown Des Moines directly off of E. MLK Jr. Parkway. The property benefits from the continued economic development taking place in the downtown core and the more than 10 million square feet of office space. Residents are also within walking distance to the “historic court district,” which is widely known as the metro’s primary entertainment destination.

The JLL Capital Markets Debt Advisory team was led by Managing Director Tony Nargi and Director Will Haass.

"Tony and William's execution of this loan exceeded expectations from both the total net proceeds as well as fighting for every bps on the spread. Their ability to help us navigate through an extremely challenging treasury environment made the process much more enjoyable. We're incredibly grateful for their outstanding work,” said founder and CEO of VareCo, Terrance Doyle.

Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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VareCo is a private real estate investment firm specializing in value-add opportunities across the Denver, Colorado and Des Moines, Iowa multi-family markets. VareCo’s passion is to develop untapped potential in people, properties, and portfolio companies to improve the daily lives of all their stakeholders and to deliver above-market, risk-adjusted returns for our investors. With 1,799 units owned, VareCo has transacted on over 70 transactions totaling in excess of $320 million. The firm has extensive experience in owning and operating multifamily assets. Their institutional quality asset management approach coupled with their relationship network of investors, brokers, and banking relationships allows VareCo to fulfill the desires of their residents and investors.