The problem: Hubbell Realty traces its roots to patriarch F.M. Hubbell’s first land purchase in Iowa, a 256-acre piece of farmland that set him on a path that would lead to development of Des Moines Water Works, much of the railroad infrastructure in the city of Des Moines, and the development of warehouse, industrial and commercial office buildings. For 50 years, a trust prevented heirs from doing much more than managing those properties. The challenge now is how to keep the company relevant at age 160.

The innovation: Hubbell Realty was little more than a property manager for nearly 50 years, limited in its development activities by F.M Hubbell’s trust. It was designed to preserve wealth. The trust expired in 1983 and the company, then led by great-grandson James Hubbell III, reasserted itself as a major player in Greater Des Moines development. It built an office park in the East Village and a skyscraper and retail center along Walnut Street. It formed a commercial brokerage, built homes, took a stab at running a residential real estate company, turned empty warehouses and office buildings into apartments in downtown Des Moines (where it also carved out new developments on dilapidated properties), found the benefit of building conservation-oriented neighborhoods, and, most recently, expanded into senior housing communities.

How they did it: James Hubbell III is chairman of the Hubbell Realty board of directors these days, and Rick Tollakson is president and CEO of the company. Although heralded as a developer and renovator of apartments and townhome projects in downtown Des Moines, the company also is busy developing senior housing. After examining the demographics of the aging population in Greater Des Moines and across Iowa and studying the business models of other successful developers of senior housing — Des Moines-based WesleyLife and Pella-based Ewing Development among them — Hubbell decided to enter the market with its 40-unit, $7.4 million Edencrest at Riverwoods senior living community on Park Avenue in Des Moines. The Edencrest brand represents a partnership of Hubbell with Senior Housing Management of Cedar Rapids. Both are equity partners in the senior living developments. Hubbell serves as developer and Senior Housing Management is the operator. Tollakson said the partnership allows both companies to focus on their strengths. It has been a good relationship. Edencrest at Green Meadows, a 64-unit, $11.4 million development, has opened in Johnston and work is underway on the 60-unit $12 million Edencrest at Beaverdale community. Other projects in Norwalk and Ankeny are under development.

The payoff: “The future is bright,” James Hubbell III said when the company celebrated its 160th year with a reception at the State Historical Museum in Des Moines. Hubbell and Tollakson say they are surrounded by a staff of “implementers” who have the freedom to make decisions and take an approach to the real estate and development business that is creative and practical. Much of it is based on research, the kind that led the company into the senior housing market.