Krause Group has purchased the twin office buildings at 100 and 200 E. Grand Ave. in downtown Des Moines. Photo courtesy of Google
The distinctive-looking twin white office buildings along East Grand Avenue in downtown Des Moines have a new owner – Krause Group, the parent company of an eclectic group of businesses including Kum & Go convenience stores, Italian wineries and soccer clubs.

200 E Grand LLC, managed by Krause Group, paid East Grand Office Park LP $14.1 million for the property at 100 and 200 E. Grand Ave., Polk County real estate records show. The transaction was recorded on Oct. 6.

“Our plans are to operate ‘as-is’ for several years with the potential to evaluate redevelopment in the future,” Ariel Rubin, Krause Group spokesman, wrote in an email. Rubin declined to provide any other information except to write that the offices buildings have an occupancy rate of over 90%.

The office buildings were constructed in 1985, opening in fall 1986 amid much fanfare. At the time, they were among the few newly constructed structures east of the Des Moines River. For years, downtown Des Moines backers concentrated redevelopment efforts mostly west of the river.

The city of Des Moines, whose offices are one block west of the office buildings, purchased the two-block area on which the structures are now located. The land was cleared of dilapidated buildings and sold to three groups: Principal Mutual Life Insurance Co. (now Principal Financial Group), Health Properties Inc., an Iowa Hospital Association subsidiary, and Des Moines Development Corp. Principal Financial and Health Properties each owned 49.5% of the property; Des Moines Development owned the remaining 1%, real estate records show.

The $10 million project included the construction of two three-story office buildings with a total of 115,000 square feet. The buildings are connected by a ground-level, glass-enclosed walkway. The first tenants of the buildings were the Iowa Department of Economic Development and the Iowa Hospital Association.

Public records show that Principal Financial left the partnership in late 2010. A new modified mortgage through Great Western Bank of slightly over $6 million was filed with the Polk County recorder. East Grand Office Park, managed by the hospital group, took out the mortgage.

The 5.5-acre property, which includes surface parking, is valued at $8.1 million, according to Polk County assessor records.

The office buildings are located in the East Village, an area that has seen much redevelopment in the past 10 years. Most recently a four-story multiuse mass timber building was completed across the street to the south at 111 E. Grand Ave.

Krause Group has expanded its real estate holdings in downtown Des Moines in the past six years. In fall 2018, the company moved into the Krause Gateway Center at 1549 Grand Ave. Between 2014 and 2020, the group has bought 10 properties near its headquarters, spending more than $14.47 million.

The company, through its Blackacre Development subsidiary, purchased property south of Martin Luther King Jr. Parkway along Southwest 14th Street for the development of an outdoor sports stadium and a street-level plaza, office and retail building, and parking garage.

The company recently expressed interest in locating the stadium about two blocks west to the site of a former manufacturing plant.
In other real estate transactions recorded between Oct. 2-12:

Beaver Bottom Boys LLC paid Kaldenberg Enterprises LLC $3.45 million for property at 5421 N.W. Beaver Drive in Johnston, Polk County real estate records show. The property includes a 37,200-square-foot metal warehouse constructed in 2019. In 2020, the property was valued at $2.1 million. Beaver Bottom Boys is located in Bondurant. The transaction was recorded on Oct. 12.

Sanav Urbandale Crossings LLC paid Royalt LLC $1.36 million for property at 7020 Douglas Ave. in Urbandale, records show. The property includes a 12,864-square-foot strip retail center that was constructed in 1977. In 2019, the property was valued at $927,000. The transaction was recorded on Oct. 7.
Essex Buligo Urbandale LLC, based in Omaha, paid the Reserve, a nonprofit corporation doing business as the Reserve on Walnut Creek, $13.6 million for property at 2727 82nd Place in Urbandale, records show. The property includes a three-story structure (pictured) that was constructed on 3 acres in 2002. The building includes 66 one- and two-bedroom units. The property is now called the Arbordale, and is for people 55 and older. The transaction was recorded on Oct. 6, records show.

Richard and Jennifer Glowacki paid Richard Prey $1.53 million for property at 4312 Timberwood Drive in West Des Moines, records show. The property includes a two-story house built in 1995. The house has 4,653 square feet of living space. In 2020, the property was valued at $882,100, records show. The transaction was recorded on Oct. 6.

WW Futures II LLC paid Jaxwil Enterprises Inc. $2.7 million for property at 1727 S. Ankeny Blvd. in Ankeny, records show. The transaction was the fulfillment of a contract sale. The 14.2-acre parcel includes a 30,874-square-foot warehouse and showroom. The building was constructed in 1983, records show. The transaction was recorded on Oct. 5.

Drake Simpson Real Estate LLC, based in Urbandale, paid Truverse I LLC $1 million for property at 12289 Stratford Drive in Clive, records show. The 1.38-acre parcel includes a one-story, 6,320-square-foot office building constructed in 1999. The property is valued at $900,000, records show. The transaction completed Oct. 5.

Realty Income Properties 18 LLC, based in San Diego, paid Des Moines Industrial Partners LLC $7 million for property at 1635 N.E. 53rd Ave. in Saylor Township, records show. The 6.4 acres include a 92,004-square-foot warehouse constructed in 1992. Dr Pepper/7Up Bottling Group is located in the building, according to the assessor records. The property is currently valued at $5.15 million. The transaction was recorded on Oct. 5.

Jordi Properties LLC, based in Ankeny, paid Absolute Farms LLC $1.3 million for underdeveloped ground south of Northwest 36th Street and east of Northwest State Street in Ankeny, records show. The property includes 4.2 acres and is zoned for single-family houses. The transaction was recorded on Oct. 2.

Iowa Stanton LLC, based Urbandale, paid Kay Dentler $4.3 million for property at 2200 Stanton Ave. in Des Moines, records show. The property includes four two-story apartment buildings, each with 12 units and detached garages. The apartments were constructed in 1986. In 2019, the property was valued at $2.7 million. The transaction was recorded on Oct. 2.

Summit Real Estate Holdings LLC, located in Waukee, paid Happe Homes LLP $1.45 million for eight townhome properties in Ankeny, records show. The townhomes are located at 2717, 2721, 2725 and 2729 N.W. Lois Lane and 2720, 2724, 2728 and 2732 N.W. Casey Jones Lane. Construction of the two-level townhouses with tuck-under garages was completed in 2019, records show. The transaction was record Oct. 2.

Starland 2002 Hickory LLC, based in Camarillo, Calif., paid 2002 NW Hickory Lane Housing Coop Association $768,000 for property at 2002 N.W. Hickory Lane in Ankeny, records show. The property includes a three-story apartment building with 12 units that was constructed in 1997. The property was valued at $563,000 in 2019. The transaction was recorded Oct. 2.

James and Jamie Sue Coakley paid Richard and Jennifer Glowacki Living Trust $1.15 million for property at 360 Painted Woods Drive in Waukee, Dallas County real estate transactions show. The property includes a 1 1/2-story house with 3,475 square feet of living area. The house was constructed in 2008. A swimming pool was added to the property in 2013, records show. The transaction was recorded on Oct. 2.