Why we bought a 144-unit apartment in Idaho

Our team at Blue Field Capital just acquired The Lofts on Broadway, a 144-unit multifamily property in Idaho Falls. This new property was built in 2023 and acquired off-market.

How we got this opportunity

We started evaluating The Lofts on Broadway in February 2024, while it was still in the lease-up phase. The property stood out to us for a number of reasons, including its pricing, location, and long-term growth potential.

  • Attractive pricing compared to Market Comps:

    We secured the property at a significant discount of over 20% compared to peak 2021-2022 pricing. Additionally, our all-in cost is only marginally higher than what older properties (early 2000s vintage) have commanded in the market over the past year. Our strong relationship with the brokers facilitated a direct connection with the seller, enabling us to negotiate a favorable purchase price.

  • Alignment with our Market Experience:

With the acquisition of Lofts on Broadway, Blue Field Capital now owns three assets in Idaho Falls. We know the area and we’re confident in the business plan and operational upside potential. 

  • Minimal CapEx expected:

The Lofts on Broadway was finished in 2023 and there is no need for immediate renovations or repairs. We’ve set aside $275,000 as a CapEx reserve to cover any needs during our hold period, but we expect minimal capital expenses.

  • Strong Market & Demographics:

The local demographics—median income, age, rent-to-income ratios, and population growth—all point to sustained demand for multifamily rentals. This supports our expectation of rising rental rates and property values over time.

Why Idaho Falls is a smart choice

Idaho Falls has been making headlines as one of the fastest-growing cities in the U.S., recently ranked the #1 best-performing small city. With a 2.5% population growth rate, far surpassing the national average, the city’s attractive cost of living and job market are driving this surge. This makes it an ideal location for rental properties.

Situated on Broadway Street, The Lofts on Broadway offers easy access to the city’s core and major employers. The property features a mix of 1 and 2-bedroom units, with most being 2 bed/2 bath and averaging 904 square feet.

Right now, the property is managed by a local firm that hasn’t fully tapped into its potential. We’ll be bringing in NXT Management, a firm we trust and have worked with many times before, to take over. Given their strong presence in the Idaho market, we also believe that they are a perfect match for this opportunity.

Strong returns forecast

We have projected that The Lofts on Broadway will deliver strong returns with an Investor IRR of 14.56%, a 1.88x equity multiple, and a 5.6% average cash-on-cash return over a 5-year hold period. While the initial cash-on-cash returns will be lower for the first 12-18 months, we expect them to rise to between 6.4% and 7.4% in the later years. These projections are based on conservative underwriting with only 50% LTV and fixed-rate financing, ensuring a risk-adjusted return.

This investment follows a successful 1031 exchange from two Missouri properties: Cross Creek Villas and The Falls of Columbia.

This acquisition aligns perfectly with our strategy of targeting high-quality assets with management upside in growing markets. We’re excited about the prospects for The Lofts on Broadway and confident in our ability to deliver strong returns through our proven management and market expertise.

For more information about our investment strategy and focus, please connect with Blue Field Capital on LinkedIn.