BAM Capital Acquires Fund II Asset 3 Announces First Location in Iowa

By Heath Fellows.
Updated Oct 1, 2021

DES MOINES, Iowa (PRWEB) October 01, 2021 - BAM Capital has revealed its first asset in Iowa after acquiring BAM Multifamily Growth & Income Fund II Asset 3: The Summit at Heritage, which closed on September 15, 2021. Formerly known as Ascend at Heritage, The Summit at Heritage is a Class A, 309-unit, garden-style apartment complex located in the northwest corridor of Des Moines, Iowa in Grimes.

This is BAM Capitals first property located in Des Moines, which is the largest metropolitan statistical area (MSA) in Iowa with a population of over 683,500. Grimes, which is 15 miles northwest of downtown Des Moines, is one of the fastest-growing communities in Iowa with a current annual population growth of 7.9% and 110% over the past decade.

The Summit at Heritage serves as a prime location asset with high upside opportunities for the BAM Multifamily Growth & Income Fund II. It offers substantial room for revenue growth in a market with great fundamentals. It also allows BAM Capital to maintain its investment thesis of focusing on low-risk assets with in-place cash flows and high appreciation potential.

The Summit at Heritage was developed by DHI Communities, which is a $33+ billion publicly-traded company (DHI). Phase I of its construction was completed in 2019, while Phase II was finished in 2020. The property consists of six three-story walk-up residential buildings, containing a total of 309 units.

Situated on a large 15.86-acre site along Northeast Grimes Boulevard around four miles north of Interstate 80, The Summary at Heritage is in a prime location where residents can access major parks, restaurants, and shopping options. Interior finishes include stainless steel appliances, in-unit full-size washer/dryer, large private balconies or patios in every unit, durable LVT laminate tile flooring in living areas, beautiful granite countertops, subway tile backsplashes, and ceiling fan(s). The Summit at Heritage also has common area amenities including a large swimming pool with sundeck, an outdoor lounge area, a club room with a kitchen, fireplace, HDTV and games, a coffee station, detached garages, a fitness center, and two on-site dog parks. There is also complimentary Wi-Fi in common areas.

Close to bustling employment opportunities, easy interstate access, and high-quality retail. The Summit at Heritage is set in a fantastic area in Des Moines which was just rated the #1 Best Place to Live in the Midwest for High Salaries and Low Cost of Living by the Ascent in 2021. Des Moines also came in at #5 on the Best Places to Live in the US; two years running. Iowa, specifically the Des Moines and Grimes area, follows BAM Capital's investment strategy to target midwest tertiary markets with upward trending white-collar job and population growth and quality school systems. The Summit at Heritage fits all the physical characteristics that BAM Capital is looking for in a property. It is well-located, newer vintage, and has great amenities and floor plans that are perfect for white-collar renters who are prioritizing space and lifestyle. This property is located in the largest metropolitan statistical area in IA. Des Moines has an expected population growth of 7.4% over the next 5 years, which is higher than the US average of 4.69%.

The key renter demographic, which is 18 to 35 years old, is expected to grow 56.2% by 2026. The current rent trails competitors by $150 to $225. BAM Capitals management efficiency and rent growth will be the primary value-add propositions for The Summit at Heritage. There are now four assets in the BAM Multifamily Growth & Income Fund II: Waterstone in Evansville, IN; Canal Flats and The Ventry in Fort Wayne, IN; and The Summit at Heritage in Des Moines IA.

The BAM Multifamily Growth & Income Fund II is a private real estate fund that seeks a balance of stable cash flow, capital appreciation, and accelerated/bonus depreciation tax benefits while maintaining a low overall risk profile. The strategy of Fund II is to acquire 2015 vintage, or newer, multifamily assets with proven in-place cash flows and add significant value through rent appreciation and expense reductions/efficiencies. Through diversification, the Fund structure eliminates single asset risk. It also increases the likelihood of a higher overall return for investors due to the expectation that one or two assets may significantly outperform projection.

This is possible due to a high degree of confidence in the BAM Management, BAM Capital, and BAM Construction teams ability and track record. The Initial IRR for the Summit at Heritage is 15.37% with a 1.9X equity multiple.