Work is expected to resume next week on the 33-story 515 Walnut Tower after the developer finalized a construction loan for the project late Friday.

Joe Teeling, president of St. Joseph Group, the firm behind the project, sent an emailed statement that said they had closed on a loan that allows the project to move forward.

“We anticipate construction recommencing sometime next week,” he said in the emailed statement. “With this funding, the project is now fully financed, and we are ready to move full speed ahead toward the originally scheduled completion date of spring 2027.”

The tower is being built on the site where the Kaleidoscope Mall once stood. It will feature 390 units, including studio, one-bedroom and two-bedroom units, a fitness center, coffee shop, and a rooftop terrace with both open-air and enclosed areas.

The estimated cost of the project is $148 million, with completion expected in 2027. Once complete, its estimated assessed value will be more than $69.5 million.

It will be the largest residential project ever built in downtown Des Moines and the most significant change to the downtown skyline since the construction of 801 Grand in 1991.

In comments made to the Business Record on Friday, Teeling said the loan was the final piece of the financing package needed for the project.

“This is it,” he said. “We got the equity completely financed and this will finish it off, so our capital stack will be done.”

He said there were delays in closing the loan, which he had anticipated closing around Oct. 15, resulting in the work stoppage at the construction site.

“It usually takes 30 to 45 days to close but this has gone on a little longer,” he said. “We’ve just had some difficulty with guarantee agreements and the construction loan was coming while we were already building the project and it required a lot more legal documents. It just took longer. It’s been painful for sure. It’s been pretty tough, especially for the builders.”

Teeling said the delay shouldn’t affect the overall schedule of the project and it should still be complete by spring 2027. He said the construction company, Beal Derkenne, was a little ahead of schedule when the delay occurred.

Andy Beal, co-owner of Beal Derkenne Construction, said in an email Friday afternoon that the overall impact of the delay wasn’t immediately known.

“There was a two week direct impact to the work pausing at the site, however the recommencement efforts and ramping back up is currently being assessed internally,” he said late Friday.

In the email, Beal did say trade workers would be on site on Monday.

He said his company had received the funds owed to date and was getting payments to subcontractors late Friday. 

Beal said the company has been involved in several projects where similar financing circumstances have occurred, however, it has rarely resulted in projects pausing. 

“This is a large project with a complicated financing structure and our client has worked around the clock to get it over the finish line,” Beal wrote.