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Commercial Real Estate Weekly | October 23, 2024
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The atrium area of the reimagined Atlas Building, 7001 Westown Parkway in West Des Moines. WB Realty Co. purchased the 415,000-square-foot building from Wells Fargo and is turning it into a multi-tenant building that will include a restaurant, event center and day spa and salon, as well as flexible office space. Photo by Jake Boyd Photo.
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Hospitality group, spa first tenants in newly visioned Atlas Building in West Des Moines
By Michael Crumb | Senior Staff Writer
The first tenants of the newly reimagined Atlas Building were recently announced, taking the first steps in turning the former Wells Fargo office building in West Des Moines into a multi-tenant building that will feature a restaurant, event space and spa and salon.
WB Realty Co. hosted an open house at the building on Oct. 17 at 7001 Westown Parkway, giving tours of the redesigned space and introducing the first tenants who will occupy space in the six-story, 415,636-square-foot building. WB purchased the building from Wells Fargo for $16.5 million and began redesigning the space earlier this year, said Ryan Wiederstein, WB Realty owner.
"We just thought it was a good investment and there was only upside," he told the Business Record during a tour of the building.
He said the Atlas Building is special because it provides quality Class A space for companies that are ready to "level up" their space.
"Value is there for tenants that want to get a fresh perspective on their office space," Wiederstein said. "This building will also feel like a community when people come in here."
He said turning the building from single tenant to multi-tenant will cost "multimillions of dollars."
While the newly designed space of the Atlas was on full display, the announcement of the new tenants was elevated during a presentation at the open house.
The restaurant and a 500-guest event center on the first floor will be operated by LaValle Hospitality Group, with Jana and Doug Van Polen opening a day spa and salon on the west end of the first floor. LaValle will also operate the lobby cafe.
The building will also feature a commercial-level fitness center, and is close to other amenities in the area, Wiederstein said.
"The location is second to none," he said.
The second floor of the building, which is the ground floor, features a newly laid office space corridor with space on either side. Proposals are out for those spaces.
The east wing of the floor can accommodate spaces ranging from 3,500 square feet up to 14,000 square feet, while the west wing offers 31,000 square feet of office space.
Wiederstein said once leases for the second floor are signed, WB will move forward and duplicate the design on the third floor. The upper three stories will be left open to accommodate larger users, he said.
"This corridor [on the second floor] took us a couple of months to build out so we can accommodate something reasonable on time," Wiederstein said. "I’m not going to take it out of play in case there’s a user that needs 30,000 square feet not divided. We can move as quickly as we need to, but there’s a method to the way this building needs to be brought back and make it multi-tenanted and not doing it all at once."
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Floor options include 72,000 square feet, or about 31,000 square feet for half floor designs. WB will remain flexible to accommodate users who need less space, with options ranging from 2,000 square feet to 25,000 square feet.
The building was built in 2000 and renovated in 2020 and 2021, when it received a new roof and had solar panels installed. It also has 100% generator backup, as well as a data center underground that Wiederstein said some users are looking at.
He said the building’s floor plate makes it ideal to convert to multi-tenant.
The building also has a lot of parking, four restrooms on each floor, five elevators and a freight elevator.
"There is a lot of nice infrastructure, and Wells Fargo did a great job taking care of this building," Wiederstein said.
WB Realty worked with Bank Iowa on the project, which he said was important to him.
"We thought that was important to have a local lender that understands this market," Wiederstein said.
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Construction of Callaway, a 190-unit apartment and townhome project planned in Norwalk, is expected to begin in early 2025. The $32 million project is being developed by Hubbell Realty Co. The aerial below shows the area where the development is planned. Rendering by Simonson & Associates. Photo courtesy of Hubbell Realty Co.
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Hubbell plans $32 million rental project in Norwalk
The Callaway will include 90 apartment units, 58 rental townhomes
By Kathy A. Bolten | Senior Staff Writer
A new rental community is planned in Norwalk, a Warren County community whose officials want to offer an array of housing options to potential residents.
Hubbell Realty Co. plans to begin construction in early 2025 on Callaway, a $32 million apartment and rental townhome development that will be part of the master-planned neighborhood called Holland Pointe. Callaway will include 58 rental townhomes and 90 apartment units spread through two, three-story buildings.
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Callaway will also include a community clubhouse, swimming pool, fitness center, dog park and garages for residents.
Holland Pointe, a 120-acre master-planned community that Hubbell began developing in 2022, is in northeast Norwalk along Beardsley Street. When completed, the community will include over 500 single-family houses, townhomes, apartments and villas. The community will also include pocket parks and walking and bike trails that connect to Elizabeth Holland Park.
"We hope to provide a mixture of apartments and townhomes that really give the renter more choice in where and how they live," said Matt Weller, vice president of development with Hubbell, in a news release.
As Norwalk’s population grows, more apartment units and other types of rental units will be needed, said Luke Nelson, Norwalk’s city manager.
In 2020, Norwalk’s estimated population was 12,800, according to the U.S. Census Bureau. By 2023, the bureau estimated the community’s population at 14,873, a 16% increase. Norwalk’s population in 2033 is expected to reach over 25,861 residents, according to city officials.
Historically, about 18% of Norwalk’s housing stock has been high density or apartments, Nelson said. To keep that ratio as the population grows, Norwalk needs to add about 75 apartment units a year. "If we are going to continue to draw people to Norwalk, maintaining that percentage [of apartments] is important," he said.
Having a variety of housing options also entices young families to move to the community, Nelson said. "By having apartments and some smaller, lower-priced homes, you're allowing people to start their family in this community, get their kids started in school and keep [families] in one location. If we're missing one segment of that housing type — the lower end — you can’t do that, which can cause some problems."
Not all of Norwalk’s residents support adding more apartment units, Nelson said. Some residents are concerned about increased enrollment in schools and additional traffic on streets.
Some residents also complain about the community’s property tax rates, Nelson said. "High-density housing can actually be a part of balancing our tax base. Not because apartments pay higher property taxes but because the additional population drives more commercial business, which drives a balanced tax base."
Hubbell’s Callaway apartments, which will be located on the southwest corner of Waller Avenue and Sayre Drive, will include 12 efficiency units, 42 one-bedroom units, 24 two-bedroom units and 12 three-bedroom units.
Another apartment development in Norwalk is the Legacy Circle Apartments, planned on about 7 acres along Colonial Circle in north-central Norwalk. The site has sat empty for 23 years since the adoption of the Legacy Planned Unit Development, according to Norwalk city documents.
The development by Des Moines-based Nelson Construction & Development is proposed to include a five-story apartment building with 190 units. The market-rate project will include 20 studio units, 60 one-bedroom units, 91 two-bedroom units and 18 three-bedroom units.
Construction of the project is expected to begin in early 2025, said Nelson, who is not affiliated with the construction company. The project has received all of the necessary city approvals, he said.
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Nelson Construction & Development plans to develop a five-story apartment building along Colonial Circle in Norwalk. Construction could begin in 2025, city officials said. Rendering courtesy of Hartman Trapp Architecture Studio
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MEMBERSHIP EXCLUSIVE CONTENT
ICYMI: Wells Fargo to become Casey's Center
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By Michael Crumb | Senior Staff Writer
Iowa Events Center officials announced Monday that the downtown entertainment venue Wells Fargo Arena will be renamed the Casey’s Center.
Ankeny-based Casey’s General Stores was awarded naming rights for the 17,000-seat arena following about eight months of talks with Polk County and Oak View Group, the operators of the Iowa Events Center, which includes the arena.
Financial arrangements of the 10-year agreement were not immediately available.
The move brings to an end a 20-year agreement with Wells Fargo. That agreement expires on June 30, 2025. The arena will become the Casey’s Center on July 1, 2025.
Read the full story here.
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LOCAL NEWS
ICYMI: IEDA approves $23.5M for soccer stadium and global plaza development
By Michael Crumb | Senior Staff Writer
The Iowa Economic Development board has approved $23.5 million for a pro soccer stadium and other developments that will transform the former Dico Inc. site downtown into a mixed-use and entertainment district.
The board unanimously approved the final application for funding from the Iowa Reinvestment Act, allowing the Iowa Soccer Development Foundation to move forward with plans to build a 6,300-seat stadium that will meet United Soccer League standards as organizations look to bring a franchise to Des Moines.
According to IEDA documents, the multiuse stadium will sit on the 38-acre Superfund site south of Martin Luther King Jr. Parkway and east of Fleur Drive. The ISDF will own the facility, while a separate entity will operate the stadium. The IEDA award will be issued to the city of Des Moines with any bonding that may be needed being done by the foundation.
Read the full story here.
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BUSINESS RECORD CALENDAR
NEWLY ANNOUNCED EVENTS
Iowa Commercial Real Estate Association
WHAT: Monthly meeting of the Iowa Commercial Real Estate Association
WHEN: 7:15 a.m. Thursday, Nov. 7
WHERE: Des Moines Golf & Country Club, 1600 Jordan Creek Parkway, West Des Moines
OTHER INFO: Amanda Wanke, CEO of Des Moines Area Regional Transit Authority, is the featured speaker. Wanke will present an overview of DART's current and future plans. For more information or to register, click here.
View our full calendar to see the latest curated business and community events, or suggest an event.
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NOTABLE TRANSACTIONS
The real estate transactions from Polk and Dallas counties include information about transactions of $1 million or more including the sale of single-family houses as well as other transactions of interest.
Medical property in Ankeny sold for $31.7 million
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A Georgia-based real estate company that specializes in the medical and office sectors has acquired property in Ankeny on which Mercy Medical North is located, Polk County real estate records show.
800 E First St Owner LLC, managed by SG Property Services LLC, acquired the 12.6-acre parcel, paying Ankeny North MOB LLC $31.7 million for the property, records show. SG Property Services is located in Atlanta, Ga., and, according to its website, focuses on health care-oriented real estate and professional office development.
The Ankeny property includes a two-story, 100,751-square-foot medical office building constructed in 2004.
The property is valued at $24.7 million. The transaction was recorded Oct. 17.
In other transactions:
Rudraksha Hospitality Inc., located in Oskaloosa, paid Premier Hotel Management LLC $4.3 million for property at 215 N.E. Delaware Ave. in Ankeny, records show. The nearly 2-acre parcel includes a three-story hotel with 67 guest rooms. The 40,164-square-foot building, occupied by Comfort Inn and Suites, was constructed in 2001. The property is valued at $3.1 million. The transaction was recorded Oct. 17.
Glasgow Group Altoona IA Series LLC, located in Algonquin, Ill., paid Fifty-one forty-nine LLC $2.2 million for property located at 1220 34th Ave. S.W. in Altoona, records show. The 2.3-acre parcel includes a mini warehouse storage facility occupied by All Climate Storage. The storage facility, which includes 32,892 square feet of space, was built in 2004. The property is valued at just over $2 million. The transaction was recorded Oct. 17.
Western Montana Land & Cattle Co. LLC, located in Polson, Mont., paid Rasmussen Group Inc. $730,502 for undeveloped property at 2244 N.E. 54th Ave. in Des Moines, records show. The property includes 2.5 acres. The transaction was recorded Oct. 17.
Woodland Office Park Property LLC, located in Clive, paid Woodland Park Associates LC just over $2 million for property at 3408 Woodland Ave. in West Des Moines, records show. The 3.1-acre Woodland Office Park includes five one-story buildings with a combined total of 26,880 square feet of space. The office park was developed in 1991. The property is valued at just over $2 million. The transaction was recorded Oct. 18.
Dallas County
Joseph Bulens paid Showtime Roofing LLC $2 million for property at 18261 Valleyview Circle in Clive, Dallas County real estate records show. The property includes a 4,118-square-foot single-family house whose construction was recently completed. The transaction was recorded Oct. 18.
Misty and Darin Gruver paid KRM Development LLC just over $1 million for property at 4010 N.W. 181st St. in Clive, records show. The property includes a 1,985-square-foot single-family house whose construction was recently completed. The transaction was recorded Oct. 18.
XL Storage Waukee LLC, located in Clive, paid Waukee Land Investment LLC $911,928 for undeveloped land at 230 N.W. 17th St. in Waukee, records show. The 5.3-acre parcel is zoned commercial. The transaction was recorded Oct. 15.
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Clarification
Land purchased by Kwik Trip Inc. this month in the 6100 block of S.E. Delaware Avenue in Ankeny included over 10 acres of undeveloped land. The Wisconsin-based company acquired an adjacent lot earlier this year. The company plans on constructing a travel center on the site that will include parking spaces for 46 semi-trailer trucks. A spokesperson said construction is expected to begin in 2025.
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Luther College in Decorah has begun a major renovation to its athletic facilities. Renovations and construction are funded by a $10 million gift from Michael Gerdin, a 1992 alumni, and his wife Nicole. Construction is scheduled to be complete by December 2025. Photo by Opus Group.
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Luther College undertaking major athletic facility renovation
By Business Record staff
Renovations of the Gerdin Fieldhouse for Athletics and Wellness at Luther College are underway, with plans to update the existing 200,000-square-foot athletic facility and build a 15,787-square-foot addition.
According to a news release from the Opus Group, the architect on the project, work began in August and will include construction of a new lobby on the facility’s north end with a new concession stand, restrooms and Hall of Fame space to recognize the school’s athletic achievements. Opus is working with RDG Planning & Design on the project.
A new 10,000-square-foot wrestling training complex will also be built with extensive renovations to the existing basketball and volleyball arena.
According to the release, the project also includes renovations to athletic training and rehabilitation facilities, locker rooms and meeting and study spaces for athletes.
Construction of the Gerdin Fieldhouse is made possible through a $10 million gift from Michael and Nicole Gerdin through the Gerdin Charitable Foundation. It marks one of the largest renovation projects in Luther’s history. Michael Gerdin is a 1992 alumni of Luther College.
Construction is expected to be completed by December 2025.
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FINANCIAL UPDATE
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