The acquisition of American Equity Investment Life Holding Co. by Brookfield Reinsurance closed recently with company officials revealing they plan to move American Equity’s headquarters from West Des Moines to downtown Des Moines.

According to a news release on Brookfield’s website, its acquisition of American Equity was completed on May 2 in a cash and stock transaction valued at $56.50 per American Equity share.

The addition of American Equity boosts Brookfield Reinsurance’s operations and increases its insurance assets under management to more than $100 billion, the release stated.

“We are excited to welcome AEL to our organization as we continue to grow, diversify and scale our retirement services capabilities,” Jon Bayer, managing partner at Brookfield, said in the release. “AEL’s strong franchise and track record of serving policyholders and distribution partners, coupled with the scale of our existing platform and offerings, will position us well for the next phase of growth.”

In the release, company officials said Brookfield plans to keep American Equity’s headquarters in Des Moines and that growth in the fixed annuity business should increase jobs in Iowa.

According to its website, Brookfield has corporate offices in New York and several other locations around the world.

Kerrie McHugh, a spokesperson for Brookfield, confirmed that American Equity will move from West Des Moines to downtown Des Moines, but declined to identify a specific site.

“We are involved in talks,” she told the Business Record.

Steven Schwartz, a spokesperson for American Equity, confirmed that the company will move from its West Des Moines location at 6000 Westown Parkway, West Des Moines, when its lease expires in fall 2025.

According to a Des Moines Register story published today, American Equity CEO Jeffrey Lorenzen wants to require employees to work from the office to improve company culture.

American Equity has about 1,000 employees, and the move downtown would reenergize the downtown district by bringing more people to local restaurants and businesses in the central business district, he said.

“Brookfield Reinsurance and American Equity are committed to supporting its business, employees and neighbors, and we believe a vibrant downtown will be beneficial to us all,” Schwartz said in an email to the Business Record.

The announcement of American Equity’s move also comes as office vacancy rates in the central business district increased in the first quarter of 2024, according to market reports from JLL, CBRE Inc., and Cushman & Wakefield.

In the CBD, more than 1.7 million square feet, or 16.8% of the office space, was vacant in the first quarter, data from JLL shows.

Eric Land, a research manager for the brokerage firm, said the percentage is the highest  vacancy rates have been since 2007. He attributed much of the increase to Wells Fargo moving many of its workers to its West Des Moines campus.