Westgate Townhomes

Oskaloosa, IA • New Multifamily • $9.4M Total Project Cost • $2.2M Equity

Westgate Townhomes is a 48-unit townhome development in Oskaloosa, a rural community located in central Iowa. Despite experiencing healthy employment growth and recent business expansions to the region’s major employers, new rental housing supply has not matched the demand. As a result, the project has received significant public support in the form of a $1,000,000 workforce housing tax credit award, a $1,000,000 redevelopment tax credit award, and a Thriving Community designation from the State of Iowa. Westgate Townhomes will accommodate the housing needs of the region by providing a combination of the most efficient and cost-effective townhome layouts in the Hubbell portfolio.

10 Year Target Returns:*

IRR: 10.73% • Cash on Cash: 8.50% (8-Year Stabilized Avg.) • Equity Multiple: 2.20x

Project Overview

Property

Westgate Townhomes

Address

NW Corner of Suffolk Road & Coal Mine Loop

City, State

Oskaloosa, IA 52577

County

Mahaska County

Product Type

Townhomes

Construction Type

Wood Frame

Units

48

Residential NRA

47,004 SF

Average Unit Size

979 SF

Site Size

3.13 acres

No. Of Stories

2

Construction Start

Q3 2026

Completion

Q3 2027

Developer

Hubbell Development, LLC

General Contractor

Hubbell Construction Services

Management

Indigo Living

Location Highlights

0.1 miles

South of TRIO Entertainment Complex

1.6 miles

West of Musco Sports Lighting & Downtown Oskaloosa

2.4 miles

West of Mahaska Health Main Campus

Summary Of Returns

8.50%

Cash on Cash ( 8-Year Stabilized Avg)

10.73%

IRR (10-Year Hold Period)

2.20%

Equity Multiple with Sale Year 10

11.02%

IRR (5-Year Hold Period)

1.48x

Equity Multiple with Sale Year 5

Quick Access

0.4 miles
South of Highway 92

0.6 miles
South of Highway 163

Community Amenities

Central Air Conditioning
Hard Surface Countertops
In-Unit Washer/Dryer
LVP Flooring
Private Entry
Stainless Steel Appliances

Surrounding Area

Major Announcements

Musco Sports Lighting recently completed a multi-million-dollar, 74,000-square-foot renovation and expansion to its downtown campus. The expansion added seating for an estimated 565 people. The “world leader in sports lighting and facility solutions” also announced a new 30,000-square-foot facility for product development and testing. Musco’s President Shelly Herr described the company’s expansion as a “signal that we’re planning to stay in Oskaloosa or we wouldn’t have spent the money to do that.”

 

Clow Valve, a local employer that specializes in waterworks infrastructure, recently completed a new $80 million, 36,000-square-foot expansion that is expected to double production capacity. The expansion to modernize the facility received support by the State of Iowa’s High Quality Jobs Program. According to OskyNews.org, “Local leaders noted that the investment reflects confidence in Oskaloosa’s workforce and ensures that Clow’s nearly 150-year history in the city will continue well into the future.”

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