VareCo, a Denver-based private investment firm, has purchased the Court Avenue Lofts at 308 Court Ave. in Des Moines, Polk County real estate records show.

VareCo paid limited liability companies managed by Hubbell Realty Co. $3.3 million for the property, located on the building’s second through fourth floors. The purchase also includes a first-floor leasing office.

Restaurant spaces located on the building’s street level are owned by separate entities. Spaghetti Works had occupied nearly 8,000 square feet of the ground floor. The restaurant’s operators, which also owned the space, closed the popular eatery in March. Space occupied by Johnny’s Hall of Fame, at 302 Court Ave., is owned by the establishment’s operators.

The four-story brick structure was built in two phases, according to a National Register of Historic Place application. The first phase was completed in 1890 and included 300-302 and 304-306 Court Ave. The second phase, which included 308-310 Court Ave., was completed in 1897.

The building, originally called the Seth Richards complex, is one of the largest and most intact examples of Romanesque Revival-influenced commercial design in Des Moines, according to the document.

In its early years, the building’s upper three floors were large open spaces with simple interiors. Businesses that occupied the building included Israel Brothers’ wholesale dry goods, Bently and Olmsted’s wholesale boots and shoes, and Lederer, Strauss & Co. wholesale millinery, according to the application. The street level was occupied by retail shops.

In the mid-1970s, the building began being redeveloped. Restaurants opened on the street level, include Spaghetti Works in 1978.

Hubbell Realty acquired the second, third and fourth floors around 2005 and converted the space to 51 market-rate and low-income apartments, according to a spokeswoman.

Redevelopment of the space was completed in 2009, according to Slingshot Architecture, which was involved in the redevelopment project.

“Like any development, Hubbell always evaluates the market and our assets for potential sale … and this one is no different as there continues to be a strong demand for this type of housing,” Claire Brehmer, Hubbell spokeswoman, wrote in an email.

The portion of the building that had been owned by Hubbell is valued at $1.5 million, records show.

VareCo, which specializes in workforce housing, wrote on its website that rent growth in Des Moines is expected to accelerate as demand increases for smaller units.

The transaction with Hubbell Realty was recorded Oct. 30.

Also last week, VareCo completed a separate real estate transaction with Des Moines Leased Housing Associated IX LP. 1646 Hull LLC, managed by Vareco, paid the limited partnership $7.2 million for property at 1640 Hull Ave. in Des Moines, records show. The 10-acre parcel includes a five-building apartment complex developed in the mid-1990s. The three-story buildings include a total of 120 units. The property is valued at $2.4 million. The transaction was recorded Nov. 1.

In other transactions:

Great American Realty of Grand Blvd. LLC, based in Bellmore, N.Y., paid Strifex Holdings LLC $1.8 million for property at 5400 E. University Ave. in Pleasant Hill, records show. The 1.1-acre parcel includes a recently built fast-food restaurant occupied by Arby’s. The brick-veneer building is 2,470 square feet. The property is valued at $1.4 million. The transaction was recorded Oct. 30.

The city of Bondurant paid Alan and Debbie Knuth $2.99 million for property at 7525 N.E. 80th St. in Bondurant, records show. The 9-acre parcel includes a two-story, 1,156-square-foot house built in 1893 and remodeled in 1964. Just over 3 acres of the parcel is farm land. The property is valued at $206,100. The transaction was recorded Oct. 30.

Anawim Housing Inc. paid Shree Hari Inc. $2.6 million for property at 4845 Merle Hay Road (pictured at right) in Des Moines, records show. The 2.4-acre parcel includes a former hotel that was built in 1974. The nonprofit Anawim Housing is converting the 19,566-square-foot building into a 40-unit, permanent supportive housing community. The property is valued at $1.9 million. The transaction was recorded Nov. 1.

Joseph and Donna O’Brien paid William and Jeannine Blackorby $1.39 million for property at 10510 N.W. 75th Place in Johnston, records show. The property includes a two-story, 4,538-square-foot house built in 2006. The transaction was recorded Nov. 2.

Charlie Tango LLC, based in Ankeny, paid K&N Holdings LLC $1.5 million for property at 6990 N.E. 14th St. in Ankeny, records show. The 4.1-acre parcel includes an office warehouse building, constructed in 2009, with over 32,000 square feet of space. The property also includes other companion buildings including large garages. The property is valued at $2.56 million. The transaction was recorded Nov. 2.

TBDN Investment LLC, located in West Des Moines, paid Ed Allen $1 million for property at 3432 Forest Ave. in Des Moines, records show. The property includes a three-story, 15-unit apartment building constructed in 1968. The property is valued at just over $1 million. The transaction was recorded Nov. 2.
Dallas County
Kevin and Lacey Taylor paid Keys Custom Homes LLC $1.3 million for property at 3948 N.W. 181st St. in Clive, Dallas County real estate records show. The property includes a 2,945-square-foot house whose construction was completed this year. The transaction was recorded Oct. 30.

MORE ONLINE: To read about the history of the property at 308 Court Ave., click here.