Editor’s Note: Updated with comment from Kum & Go

Kum & Go LC has completed its purchase of two blocks of properties fronting the north side of Grand Avenue from 14th to 16th streets in the Western Gateway with the acquisition of a building housing the Gas Lamp tavern at 1501 Grand.

With the exception of a strip of land that sports a billboard, Kum & Go’s 15th & Grand Properties LLC and Linden Street Investments LLC own entire city blocks that begin at 14th and Grand, tucked between the Wellmark Blue Cross and Blue Shield campus on the east and Hubbell Realty Co.’s for-sale townhouse project, Artisan Row, on the west.

According to Polk County property records, 15th & Grand Properties paid $1.25 million on Feb. 3 for the Gas Lamp property. The deed was recorded Monday. The four-story building, with three floors of apartments, was purchased for $870,000 in December 2012 by Joseph Cordaro’s Jarcor LLC.

15th & Grand Properties has paid $7.35 million for its holdings, according to property records, and Linden Street Investments has paid $9.96 million.

The tavern is the former home of Blues on Grand, and owners of the Gas Lamp continued the tradition of live music, but with more diverse styles. Read more about the Gas Lamp.

 
A Kum & Go spokesman said there are no immediate plans for changes to the building and normal operations will continue..

Gas Lamp co-owner Frankie Farrell said there is a “50-50 chance” his establishment will stay at its current location. As things stand now, the tavern will operate at 1501 Grand for at least several months.

“I do have a plan, and it’s in place,” he said. “The Gas Lamp is going to stay around,” regardless of the location.

Kum & Go has been acquiring land in the Western Gateway for construction of its downtown headquarters. The design team for the 120,000-square-foot structure is being led by international architecture firm Renzo Piano Building Workshop. OPN Architects and Confluence landscape architecture also are part of the team. Ryan Companies US Inc. is the general contractor.

Kum & Go will receive $9 million in state tax credits and $13.4 million in tax increment financing for what is expected to be a  $92 million project.

The company has said it is outgrowing a West Des Moines building it currently leases from a private investment group.

According to a state report, Kum & Go anticipates spending $45 million to construct its headquarters, $15 million to build a parking facility and $20 million to acquire land. 15th & Grand Properties and Linden Street Investments have paid $17.3 million for their properties, according to Polk County land records.

As part of the financing, Kum & Go would provide $6 million in cash and working capital and an additional $23.5 million in equity. It also would utilize a $62.5 million loan from JPMorgan Chase & Co., according to the state report.