Construction is underway on a retail strip center off of 36th Street in Ankeny, near the Costco store in what is the latest development to be announced in the northeast area of the fast-growing city.

Jay Wang, owner of Wasabi restaurants, said ground was broken on the 12,000-square-foot retail center last month. He said the center is almost “leased out” but declined to identify who future tenants might be, saying there is a nondisclosure agreement at this point in the process.

He said he’s working with a couple of national companies to fill the center, which will have space for four retail tenants.

The strip center being developed by Wang joins Community State Bank in announcing plans to build in the area, which is expected to feature multiuse developments.

Community State Bank held a groundbreaking for its new headquarters on Tuesday. The bank announced earlier this year plans to build a new 71,000-square-foot headquarters on about 5 ½ acres at the corner of Northeast 36th Street and Northeast Four Mile Drive in Ankeny, near the Costco store. It later purchased the property from Threshold Development for $4.25 million.

Wang said the location “speaks for itself.”

“It’s so convenient,” he said. “It’s right off the highway. There’s Costco. Community State Bank is going in there and potentially there could be a few big businesses going in there in the next few years. I think it will be the center of Ankeny later on.”

Costco being a regional draw makes the area attractive for development, Wang said.

“In a couple of years, when all the housing around it gets developed, I think it’s a great opportunity,” he said.

Derek Lord, Ankeny’s director of economic development, said that data shows that Costco is drawing customers from as far away as 60 miles, with most of the store’s customers not living in Ankeny, which has a population of just over 72,000.

To the south of 36th Street, DRA Properties LC is developing the Pine Lake Estates housing development and an area of retail and commercial, which received approval from the city’s Planning and Zoning Commission in June for a preliminary plat. That will allow construction drawings to be submitted and infrastructure to begin going in.

According to Eric Jensen, Ankeny’s director of community development, site plans on that area likely won’t be submitted until this winter, with infrastructure work beginning later this year and lots becoming available for construction in 2025.

Messages left for representatives of DRA were not returned.

Lord said DRA intends to sell all the property it’s developing south of 36th Street to other developers.

He said momentum in the area of 36th Street and Interstate 35 will increase as more development takes place.

“The north side of Ankeny is growing rapidly and provides a large area for commercial, retail and services that our residents expect,” Lord said.

He said a site plan for another development could go to the Planning and Zoning Commission in the next couple of months.

“When you collectively look at the overall investment we expect to occur this fall, it’s pushing $75 million-plus in overall investment in 2024,” Lord said.

The commercial brokerage firm CBRE is marketing the land north of 36th Street near Costco, which Senior Vice President Ajdin Nadarevic said is a big attraction for potential tenants.

“A lot of the attraction is coming from the visits annually that Costco is bringing,” he said. “I think anytime you have new growth, whether it’s entertainment, whether it’s food service driven, that definitely excites people.”

Software Placer.ai measures visitor data, and it showed 1.4 million visitors to Costco last year, said Ben Probst, a sales associate with CBRE’s West Des Moines office.

Nadarevic said there has also been a lot of housing announced in the area, and that growth is exciting for both businesses and residents.

He cited Community State Bank as one example of growth in the area, but said there are plans for some sporting complexes that CBRE is not involved in, along with possible development of new schools.

“I think all those mixed together is what creates a great development,” he said. “You need housing. You need places for people to work, and you need services, and I think this northeast portion of Ankeny is going to provide all of those.”

Wang said he had planned to open a Wasabi at the site of his development in Ankeny, but decided to postpone it because he’s already building a Wasabi near 50th Street and Mills Civic Parkway in West Des Moines. He expects that store to open in October.

He said the northeast area of Ankeny will become increasingly attractive as more development occurs.

“As this area continues to grow there will be more amenities that will attract professionals and people living in the area,” Wang said. “Having Costco is a big draw and as development happens and we get more schools, retailers, services, day cares, that will not only attract people to the area but also businesses to open here.”