Redevelopment of the Younkers block on Walnut Street in downtown Des Moines will proceed under local ownership after Blackbird Investments completed its purchase of the property from Wisconsin-based Alexander Co.

Blackbird Investments, a development and investment group that has played a role in key downtown historic renovations, announced today that after several months of negotiation it has closed on the purchase of the project.

In addition to 60 apartments that were part of Alexander’s renovation, Blackbird plans underground parking and 11,500 square feet of first floor retail. Work will resume this summer, with an anticipated completion date of late spring 2016, according to a release.

In recent months, the company has renegotiated a development agreement with the city of Des Moines and sought the transfer of about $10 million in state and federal tax credits that had been awarded to Alexander. The purchase price was $2.75 million.

Renovation of the downtown icon had ground to a stop after a fire in March 2014 destroyed the east side of building, which stood between Seventh and Eighth streets. Employers Mutual Casualty Co. has sued Alexander Co. and The Hansen Co. in connection with the fire and for damages suffered by EMC’s headquarters building.

“We greatly appreciate the efforts of those at the state and local level who have generously committed their resources to this project and who have joined with our neighbors, investors and lenders to show a great deal of compassion and cooperation in helping us through this trying time,” Dave Vos, development project manager for Alexander, said in a release. “We take comfort in the knowledge that Blackbird Investments is dedicated to providing the quality restoration that this landmark deserves.”

Blackbird has hired Neumann-Monson Architects as the designer for the project and Weitz Co. as the construction manager. The Doyle’s Modus Engineering also will work on the project. Lincoln Savings Bank is the lender.

A city staff report estimates that costs could increase to $20 million for work on the Wilkins Building, the original name of the structure that occupies the west side of the Younkers block.

“The immediate focus will be on the Wilkins Building and what it will take to restore the Tea Room. If the team moves forward, we will turn our attention to the empty ground towards the end of the year,” Blackbird partner Justin Doyle said in an email.

Blackbird Investments consists of brothers Justin and Ryan Doyle, their father Harry Doyle and longtime business partner Hugh O’Hagan, along with TJ Jacobs, a commercial real estate professional with CBRE|Hubbell Commercial.

“My partners and I are honored to be able to restore this landmark,” Justin Doyle said in the release. “Every time the Wilkins-Younkers site comes up in conversation we hear stories of dinners, galas, reunions with friends, wedding receptions and other life experiences in the Tea Room. This building is part of the history of Des Moines and its residents. Looking forward, this restoration will provide a new chapter to the building, provide exceptional housing opportunities downtown, and help revitalize the Walnut Street corridor.”

The group also is negotiating the purchase of the Clemens Building, 200 10th St., and planning the redevelopment of Historic Fort Des Moines. 

From the Archives:

A timely look back at a previously published Business Record article

The Elbert Files: Little-told Younkers stories

April 18, 2014 – Business Record columnist Dave Elbert reveals some history and little-told stories about the Younkers building.

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