A Cedar Rapids property management and development company that acquired the Insurance Exchange Building last fall is looking to add a coffee shop or retail space on the ground floor of the historic building along Fifth Street in downtown Des Moines. 

High Properties, an equity, management and development firm, closed on the sale of the 10-story, 136,000-foot building, which was owned by the Graham Group, on Oct. 31. Online property records show the sale price was $4.3 million.

Darryl High, owner of High Properties, said he intends to maintain the building as all offices, but wants to add an amenity for tenants and those in the neighborhood, including patrons of the YMCA across the street.

He is looking to convert a 2,800-square-foot space near the entrance that has been used as long-term storage for a law firm.

“We’re going to redevelop that into one or two small retail bays,” High said. “We’d love to get a coffee shop or smoothie shop, something to add to the area that will benefit all the people in the building, but also a benefit for all the people that go to the YMCA.”

He said he hasn’t decided whether to divide the space in half or keep it as one space.

“In the retail world, 2,800 square feet is a little big,” he said. “If somebody wanted the whole thing, we’d be happy to do just one. But economically, it might need to be divided to get it to work.”

When High acquired the building it was about 75% leased. He said Axiom Engineering, an Iowa City-based firm, is opening an office in the building. Negotiations are also underway with a couple of new law firms, he said.

“We’re renewing tenants that are already there that want to stay,” High said. “We’re 100% committed to that building being a Class A asset in downtown Des Moines for the next 50 years. We have no desire to change it into housing. We have no desire to change it much at all. It’s an important landmark and we want to be a good custodian of it.”