Christensen Development has purchased properties in the Newton Legacy Plaza Campus and plans to convert four historic buildings into a boutique hotel and market-rate apartments, Des Moines Area Community College announced.

The purchase moves forward an ambitious plan to transform the former corporate campus of Maytag, a manufacturing company that for more than a century built washing machines and dryers in Newton, into a vibrant area filled with businesses, residences and visitors.

“This is an investment in placemaking,” said Kim Didier, executive director of DMACC Business Resources. “We had a vision that we presented to the state to make this happen, and now all of the key pieces are coming together.”

In March, the Iowa Economic Development Authority board gave final approval to the Newton Legacy Reinvestment District, a move that awarded $14 million from the state’s reinvestment district program to the district. The state program allows cities to create special districts where money from sales and hotel-motel taxes can be set aside to help pay for projects that spur economic development.

Maytag was purchased by Whirlpool in 2006; a year later, Whirlpool shuttered the Maytag facilities, moving jobs to Mexico and to other parts of the United States. The former corporate campus has had two other owners before the property was donated to DMACC in 2016. The 14-acre parcel, which is adjacent to DMACC’s Newton Campus, has 18 tenants including Gezellig Brewing Co., Aureon, Sequoia Yoga, CIRAS and the Cellar Peanut Pub.

Moving plans to create a boutique hotel and residences forward has been challenging, Didier said. “We talked with multiple developers. It has become more and more difficult to do these types of projects in smaller communities that aren’t as proven as an East Village or a West Des Moines. … We had to prove there was a market here. Prove there was demand and then figure out how to stack the public to private financing to make it happen.”

Des Moines-based developer Jake Christensen, who specializes in historic restorations, had been a consultant on the Legacy Plaza redevelopment proposal. After the state board gave final approval to Newton’s reinvestment district, DMACC officials asked Christensen if he would redevelop the four historic buildings in the plaza, he said.

“Obviously, we knew the project well,” Christensen said. “The buildings are great and have been well cared for. Once the reinvestment district was approved, it made the project [financially] viable.”

The city of Newton and Jasper County are also contributing public money to the project and Christensen is applying for historic tax credits.

Christensen Development paid $100,000 for the properties that include Maytag buildings 1, 2, 16 and 50 and associated parking lots and driveways. Buildings 1 and 2 will be converted to a 58-room hotel; Building 16 will become a multifamily residence with 70 apartment units. Building 50 had previously housed mechanical equipment and will be used as an amenity for the apartments.

The redevelopment project is estimated at $35 million.

When completed, the hotel and apartments will be managed by Angela Harrington, president and CEO of Catalyst Development and owner of the Hotel Grinnell in Grinnell and the Highlander Hotel in Iowa City.

“There’s obviously a ton of history tied to the Maytag factory, and the buildings themselves are unique,” Christensen said. “We believe it will be the No. 1 or No. 2 apartment in Newton, depending on your choice of aesthetics. … There are a couple newer stick-built apartment buildings in Newton. This will be a product that doesn’t exist.”

Newton, like many Iowa communities, needs additional housing, Christensen said. The apartments will help fill that need.

The community also needs additional hotel rooms, Christensen said. “Hotel space has come back post-pandemic. The traveling public is different. Leisure travel is a much bigger part than what it was prior to the pandemic.”

The hotel will offer extended-stay rooms as well as traditional guest rooms, Christensen said.

Construction is expected to begin in late summer and be completed in about a year.