Apartments, owner-occupied homes, hotel rooms, entertainment venues, restaurants, boutique shops and other commercial businesses are among the types of development being considered for an area south of Des Moines’ event and convention area, the Business Record has learned.

Knapp Properties and JSC Properties own 10 parcels in a 4-acre-plus area south of Park Street between Third Street and Fifth Avenue. The partnership has been acquiring properties in the area for well over two decades. In 2023, the group bought property at 325 Grand Ave. that for years had been owned by Koch Brothers. Demolition of the two-story, dull beige building began about two weeks ago, prompting questions about plans for the site.

Chris Costa, CEO and president of Knapp Properties, said there are no immediate plans to redevelop the 325 Grand Ave. property or other parcels owned by the partnership with JSC Properties, whose founder is developer and entrepreneur Jim Cownie.

However, Costa said, plans have existed for numerous years to transform the area into an entertainment area that thrives off the thousands of people who annually visit the nearby Wells Fargo Arena, Hy-Vee Hall, Community Choice Convention Center and Hilton Des Moines Downtown hotel.

Concepts for the area have periodically been updated, most recently in 2023, Costa said. “We’re talking about apartments, hotels, retail, restaurants, all of the things that could be part of mixed-use buildings. …

“We feel that you need to create some activity with bodies,” Costa said. “We’ve got such high hopes for the area. I think COVID set everything back five, if not 10, years. We’ve got to continue to create excitement in downtown. Unfortunately, it’s trending in the wrong direction right now.”

Workers have been slow to return to downtown offices since the end of the pandemic. And while surveys show foot traffic is increasing downtown, it’s not yet at pre-pandemic levels. In addition, Walgreens recently shuttered its downtown store, and the Kum & Go convenience store at 319 Seventh St. is closing on March 24. Hy-Vee has trimmed the hours of its downtown grocery at 420 Court Ave.

Costa said there is no rush to redevelop the area south of the Iowa Events Center. “We want what is best for the community,” he said. “We’re not in a fire sale situation.”

When Knapp Properties and JSC Properties acquired the former Koch Brothers property in March 2023, there were no immediate plans to raze the building. Originally, Koch Office Group was going to lease the building. The company, instead, relocated to 1803 Guthrie Ave. In February, the company was acquired by EO Johnson Business Technologies, a Wausau, Wis.-based supplier of office print and copier equipment.

Financially, it did not make sense to refurbish the former office building and warehouse, and rather than let it sit empty, the decision was made to tear it down, Costa said. A vacant building on the southeast corner of Fourth Street and Watson Powell Jr. Way has also been razed.

Knapp Properties and JSC Properties own office buildings at 420 Watson Powell Jr. Way, 303 Watson Powell Jr. Way and 511 Fifth Ave., which recently underwent a $23.3 million renovation. Weitz Co. occupies three floors of the five-story building, which is 75% occupied. Costa said the partnership group has no plans to demolish the three office buildings.

Knapp Properties and JSC Properties will likely work with a group that has experience developing projects near sports complexes and entertainment and convention venues, Costa said.

“It’s a pretty big project for us to undertake by ourselves,” Costa said. “More than likely, we’re a partner or we sell the ground to someone who buys into the master plan and who can deliver a product that makes sense. … We’re not at the stage where we’re marketing this to the world, but if someone came along and showed interest, we have plans we can share with them.”

The partnership group will likely begin actively marketing the development in the next year to 18 months, Costa said. He estimated it would take 10 or more years to fully develop the area.
It’s more important to transform the area in a thoughtful way that will benefit downtown Des Moines, Costa said.

Bill Knapp, founder of Knapp Properties and a major downtown developer, believes “a strong downtown is necessary for strong communities,” Costa said. “He’s always focused on trying to do his best to make downtown flourish and benefit everybody.

“That’s what we want to do with this project as well.”