Rhumbline Real Estate Portfolio

Rhumbline sources multifamily acquisition opportunities from industry relationships and the brokerage, finance, and legal communities. Please contact Ballast with acquisition opportunities. See our Acquisition Criteria.

Property:Regency Heights & Johnston Heights

Size:159 Units

Location: Johnston & Iowa City, Iowa

Acquisition: 2018

Strategy

In a joint venture with two regional real estate firms, Rhumbline partnered in the acquisition of a 159-unit apartment portfolio located in Johnston and Iowa City, IA. The transaction afforded the JV an opportunity to acquire both a bank-owned property in the growth-oriented Johnston submarket and an independent senior housing community in a market with high barriers to entry. The partnership will improve operational efficiencies through enhancing marketing, implementing revenue enhancement programs, modernizing of common areas, and optimizing staffing.

Property: Iowa Workforce Housing Portfolio

Size: 260 Units

Location: Cedar Rapids & Newton, Iowa

Acquisition: 2019

Strategy

In a joint venture with two regional real estate firms, Rhumbline partnered in the acquisition of a 260-unit workforce housing portfolio located in Cedar Rapids and Newton, Iowa. Although marketed by a national real estate brokerage, the JV believed that the portfolio’s size, location in tertiary markets, classification as affordable housing, and loan assumption requirement restricted the number of potential buyers. Both Cedar Rapids and Newton have growing populations and strong local economies. The JV will invest a meaningful amount of capital to upgrade both interior and exterior building aesthetics while taking advantage of the strong supply-demand fundamentals in the workforce housing space.

Property: Nicolet Townhomes

Size:34 Units

Location: Appleton, WI

Acquisition: 2019

Strategy

Nicolet Townhomes was acquired in an off-market transaction; it was formerly owned by a national real estate investment trust whose footprint is mainly in large metro areas. Measuring over 1,600sf, these 3BR/2BA, split level townhomes offer a compelling alternative to homeownership. Each unit has an attached, two car garage and a backyard. The supply of this type of rental housing has been very limited: new multifamily supply has primarily consisted of garden-style and high rise apartments. Rhumbline will modernize each unit with new appliances, cabinets, flooring, countertops, and lighting. Monthly rents will be below 30% of the MSA’s median household income.

The property is located in proximity to the interstate highway and the area’s central retail corridor. The Appleton MSA has a population of 231,000. The local economy revolves around manufacturing, healthcare, and financial services. Appleton boasts a minor league baseball team, a performance arts center, a bevy of summer festivals, and a host of natural amenities.

Property: Tamarack Gardens

Size: 32 Units

Location: Lake Mills, WI

Acquisition: 2020

Strategy

In an off-market transaction, Rhumbline acquired a 32-unit townhome-style, senior housing community in Lake Mills, a growing town just outside Madison, WI. Each single-story townhome consists of 2BR/2BA units with attached garages. A burgeoning senior age demographic should lead to increased demand for this product. The property was constructed in 2008, and Rhumbline plans to update each unit by upgrading flooring, lighting cabinets and countertops.

Property: Crescent Lofts

Size:176 Units

Location: Davenport, IA

Acquisition: 2020

Strategy

In a joint venture with two regional real estate firms, Rhumbline partnered in the acquisition of a 176-unit apartment portfolio located in Davenport, IA. The property, originally constructed as warehouses in the early 1900s, was meticulously rehabbed by seller and operates as a hybrid market rate/affordable housing community. The JV assumed a series of loans, containing favorable terms, that the city provided for the rehab of the property. This attractive capital structure, coupled with ability to convert a portion of the affordable housing units to market rate in the future, should provide both downside risk protection and future value creation

Property: Cottages of Cottage Grove

Size: 59 Units

Location: Cottage Grove, MN

Acquisition: 2021

Strategy

Acquired in May 2021, The Cottages of Cottage Grove is a 59-unit, independent senior housing community that was constructed as affordable housing in 1993. Located in a growing, affluent suburb of St. Paul, this community is the only townhome product in the area, while it’s immediate proximity to Target, Walmart, and fast casual dining is a strong driver of demand from prospective residents. Over time, Rhumbline will upgrade units with new flooring, lighting, appliances, and countertops so that residents can experience modern apartment living at an affordable price point.

Property: Suburban Milwaukee Portfolio

Size: 116 Units

Location: Suburban Milwaukee

Acquisition: 2022

Strategy

In late 2021, Rhumbline acquired a 116-unit multifamily portfolio located in an affluent suburb of Milwaukee, WI, with a highly rated school district. Located in a high barrier-to-entry market with a combination of direct-entry and condo-style floorplans, the portfolio should have inherent competitive advantages. Rhumbline will modernize unit interiors, introduce contemporary property management services and technologies, and establish rents that are broadly affordable to area residents.

Property: Rock Ridge Commons

Size: 216 Units

Location: Moline, IL

Acquisition: 2024

Strategy

Rock Ridge Commons is a former affordable housing community nestled in a quality single family neighborhood near John Deere’s global headquarters. The property was purchased at an extremely low basis and has significant capital needs. The property’s common areas, clubhouse and units will be completely renovated, offering local residents an elevated living experience at economical rental rates.

Property: Cottages of White Bear Lake Township

Size: 60 Units

Location: White Bear Township, MN

Acquisition: 2024

Strategy

Cottages of White Bear Lake Township is an income and rent restricted townhome community built for residents who are over the age of 55. With apartment units resembling a single-family home amidst a property that includes a beautiful pond and ample green space, the property is popular with current and prospective residents. Replicating this type of low density asset in today’s environment of high construction costs is very difficult, thus limiting future competition.