The east bank of the Des Moines River in downtown Des Moines is ripe for commercial development as the city moves out of its buildings, opening them for reuse, Carrie Kruse, economic development administrator with the city of Des Moines, said during the monthly meeting of the Iowa Commercial Real Estate Association.

During her presentation on Thursday, June 6, at the Des Moines Golf and Country Club, Kruse highlighted a multitude of projects, including the possible redevelopment of current city buildings along the riverfront and other downtown redevelopment efforts, as well as an update on some residential and mixed-use development that is underway.

Here’s what she had to say:

Future of city property downtown

• Kruse said the city intends to retain ownership of the historic city hall building after it moves into the former Nationwide building at 1200 Locust St.

“We’ve gone back and forth if we were going to continue to operate that building, if we’re going to lease the building, but we ultimately decided it makes a lot more sense to house all our administrative services under one roof from a customer service perspective. So we’re going to vacate City Hall, and last month we released a request for interest. We’re going to intend to enter into a long-term lease so we would retain ownership. It’s just such a historic building, so we really want to make sure renovations are done in historically compatible ways that respect the history of that building.”

She said the city is accepting proposals through the end of the current calendar year. Kruse said the hope is that the building is used for an active, vibrant and engaging public use. “[We’re] kind of thinking similar to the arrangement we have with the World Food Prize, which is our former library that we have a long-term lease on.” The city plans to vacate the building in the first quarter of 2026.

• The city has received a proposal from Des Moines Performing Arts for redevelopment of the Armory Building. Kruse said it will go through a competitive process but that she expects to see preliminary terms of an agreement with Des Moines Performing Arts to be reached in the next few weeks.

• Kruse said the city plans to sell the police station “at some point.” She said the timing of that is likely six to seven years away.

“We have a five-year rolling capital budget at the city, and we do not currently have anything in that budget to build out the new police space within that 1200 Locust St. building. We are reserving half the building for that use, but unless something drastic changes with our budget or we get a proposal that would make it feasible for us to get out of the way, that’s probably six to seven-plus years out before that building will become available.”

The redevelopment of those buildings and others along the riverfront, including the current federal courthouse building create opportunities for commercial development downtown, Kruse said.

“When you step back and look at all these government buildings on the riverfront that exist now and into the midterm future, it really is the lion’s share of the east bank of the Des Moines River in the core of downtown where we have a lot of real estate opportunities,” she said. “It’s really exciting with the synergies with ICON Water Trails and what these buildings could really be to truly activate our downtown riverfront.”

Kruse also said construction is beginning on MidAmerican Energy Park that borders the Market District development.

“This will I believe be a catalyst for some of the high-density, high-quality development we’re excited to see within the Market District,” she said.

There are tens of millions of dollars of infrastructure under way to prep the Market District for development. A couple of projects that were planned to begin this year that were reliant on tax credits have been delayed, Kruse said.

“I’m hopeful we have some other opportunities here, maybe yet this year,” she said.

There are also plans for a park on the eastern edge of the Market District that will include a grand plaza area, a playground, walking trails and educational opportunities.

Downtown housing

There will be 1,500 new housing units added to downtown over the next year or two, with 24% incentivized to be affordable, Kruse said.

“We’re making sure we have a wide range of rents available to a broader range of households to be able to live downtown,” she said.

• Among those are the Tempo Apartments on East Sixth Street near the Capitol, which Kruse said is nearing completion with move-ins expected in August.

• The developer on that project, Heart of America, also is working on the Aston Apartments on Sixth Avenue near Des Moines Street.

• Union at River’s Edge by the Annex Group of Indianapolis, Ind., is adjacent to the Jackson Street Bridge south of the Raccoon River. It is under construction.

• Green Acres Development of Sioux Falls, S.D., is behind a project at 13th and Mulberry streets that will include about 3,000 square feet of commercial space with upper-story housing.

• Nelson Development is behind a project at 418 E. Grand Avenue. It is a five-story building that will have 15,000 square feet of office space on the ground floor with upper-story housing. Completion is set for 2025.

• The first phase of High Street Lofts near the Sherman Hill neighborhood is underway. The second phase will get underway once the first phase is complete.

• The Falcon near the Central Iowa Shelter is a $62 million, 202-unit apartment complex with no retail or commercial space included.

• Sherman Associates has a project in the Gray’s Landing area that is a 174-unit multifamily residential project at 11th and Murphy streets.

• Gray’s Station is beginning the next phase of its owner-occupied townhome development that will include three new townhome concepts that include three- and four-story buildings. There will also be a neighborhood park, clubhouse, pool and other amenities for residents.

Kruse also gave an update on plans to build a 6,300-seat soccer stadium near downtown Des Moines. She said conversations are still ongoing with the Krause Group for the construction of the Pro Iowa Stadium and Global Plaza.

“The city has presented a proposal. The county has presented a proposal and we understand there is still a small financial gap that is still trying to be solved,” Kruse said. “I know the Krause Group is looking for options. There are opportunities with the state of Iowa for some potential additional funding to try to make that go. I think the gap is too small for it not to proceed at some point soon but we’re not quite there yet.”