A mixed-use project proposed over five years ago in Des Moines’ East Village district is moving forward but with modifications.

Plans for the proposed five-story retail, office and residential building at 418 E. Grand Ave. became public in 2018. Design plans for the 97,000-square-foot structure were reviewed by Des Moines’ Urban Design Review Board in July 2019.

The pandemic, rising prices for materials and an uncertain economic climate stalled the project.

Now, Nelson Construction & Development is preparing to move forward with the project. A building permit valued at $18.3 million was issued for the project earlier this year. Construction is expected to begin in early 2024, at the latest, said Alexander Grgurich, development analyst for the company.

“We are committed to doing the project and so we decided to move forward with purchasing the building permit and preparing to start construction,” Grgurich said. “We’ve been navigating the market so that everything is lined up and we’re ready to start in the spring by the latest.”

Retail and other commercial uses are planned on the street level, Grgurich said. The second through fifth floors will be apartments. Originally, office space had been planned on the second floor. That space will now be residential.

Originally, 105 apartment units were planned in the project; 132 are now planned, Grgurich said.

The project, planned on a surface parking lot, is one of two proposed in the East Village. Heart of America Group has proposed constructing a seven-story mixed-use project at East Sixth and Des Moines streets. The project is expected to include 186 residential units and about 7,000 square feet of street-level commercial space.

A similar project by Heart of America is underway at 317 E. Sixth St.

The area is not becoming oversaturated with apartment units, Grurich said.

“There’s an overwhelming demand for housing of all types in Greater Des Moines, especially in this East Village neighborhood,” he said. The East Village “has the most live, work, play lifestyle opportunities in all of Iowa. It’s extremely walkable. It has a great mix of office and retail.

“We don’t have any concern” about there being too many residential units planned for the area, Grgurich said.

In July 2019, the project was valued at $27 million. Grgurich declined to provide its current price tag. However, he acknowledged, inflation has caused the construction costs to rise; financing costs have also increased, he said.

Nelson Construction & Development has completed other projects in the area, including a mixed-use building at 300 E. Grand Ave. and an office building at 430 E. Grand Ave. The company also built a parking garage north of the 418 E. Grand Ave. property.

“We remain committed to our overall vision for that part of the East Village,” Grgurich said.