A Texas real estate fund manager has acquired the 13-story Davis Brown Tower on 10th Street in downtown Des Moines with a plan to primarily focus on cosmetic upgrades and filling vacant space that exists in the building, the firm’s founder said.

Woodside purchased the 13-story, 152,655-square-foot building from Healing Realty Trust, a Nashville-based company that primarily owns medical office buildings, for $7.225 million, Woodside founder Mark Horrell said.

The seller was represented by CBRE, and Riley Hogan, a senior vice president in the broker’s Des Moines office, said HRT sold the building as part of its focus on its medical facility portfolio.

The acquisition included a 710-stall parking garage, which serves the building’s tenants. The tenants include the Dentons Davis Brown law firm and Global Atlantic Financial Co., which Hogan said presented a unique situation downtown.

“It provides spots that are available for your office tenants to be able to park everybody inside the building where they work,” Hogan said.

Horrell said in an email that Woodside found the building attractive because office buildings are a core asset in their portfolio.

He said only “minor” cosmetic changes are planned.

“We’re going to get the outside lights going again,” Horrell said in the email. “Most of what the building needs is system-related to keep the property running smoothly.”

Woodside used to own a commercial building in Clive but sold it at the end of 2023, so it was familiar with the Des Moines market, Horrell said.

“We basically breathe some life back into properties that have lost occupancy for some reason and no longer are receiving funds to keep them in good shape. [We are] commercial rehabilitators if you will.”

While the Davis Brown offices are in good shape, work is needed on the HVAC system and elevators, and improvements are needed to the vacant spaces “to bring up occupancy and invigorate the building.”

“Our focus will be on bringing new tenants to the building,” Horrell said.

Woodside buys its properties with cash and has a fully funded budget for improvements, Horrell said.

Hogan said the building’s location is attractive for office users.

“It’s in the 10th Street Corridor as we like to call it,” he said. “Tenth Street has some of the best restaurants in the downtown corridor.”

Built in 2007, the tower is one of the newer office buildings in the Central Business District, Hogan said.

The tenant mix is also attractive for a buyer, he said.

Hogan said there is currently about 7,000-square-feet of space available on the first floor, about 2,000 square feet on the second floor, and another 11,000 square feet available on one of the upper floors.

Hogan said Class A space downtown is limited and moves quickly when it becomes available.

He said the sale of the Davis Brown Tower represents the vibrancy of the market for Class A space downtown.

“It speaks to the fact that an out-of-state buyer who previously owned a property in the suburbs that was more retail-oriented, feels comfortable with owning a multimillion-dollar property in our market and is willing to focus their energy and their dollars on a core asset, an office building in our market,” Hogan said. “It speaks to the stability in our market.”