New owner planning makeover of historic downtown building
Nelson Development LLC purchased the L & L Insulation building last week, with plans to convert the nearly 100-year-old warehouse facility into market-rate apartments.
The developer paid $1.5 million for the property at 328 S.W. Fifth St., formerly known as the Hawkeye Transfer building, and has hired INVISION Architecture to plan the renovation.
“The building is a concrete structure with huge cylinder-shaped concrete columns,” said Jake Christensen, co-owner of Nelson Development, adding that his company would like to retain the “industrial feel” of the building, which will have about 70 units ranging between 500 to 1100 square feet with rents from $585 to $1,150.
Christensen likened the concept to an old movie scene, in which a New York City apartment dweller is seen riding a motorcycle into his living quarters.
And though he won’t be allowing motorcycles inside the units, the developer does plan to preserve the historical integrity of the building.
“Not many (apartment) buildings in Des Moines have that kind of structure,” he said.
Nelson is pursuing historic tax credits for the renovation and will name the apartments accordingly.
“We are going to go back to some form of the Hawkeye Transfer building.”
Jan Berg, a senior broker associate with CB Richard Ellis/Hubbell Commercial who represented the seller, Fligg & and Cattle LC, stated in an e-mail that “the building will be converted into market-rate apartment lofts, with a minimalist, industrial-grade look.”
The seven-story building, originally constructed as a wholesale grocery facility, has been occupied in some capacity by L & L Insulation since it purchased the property from the Hubbell family in 1976, a spokesman for Hubbell Realty Co. confirmed.
Chicago-area developer Jay Trevor had considered rehabbing the building a few years back, with a mix of market-rate and affordable units, but the project never went forward.
Nelson Construction plans to begin renovating the 79,000-square-foot building in the spring, Christensen said, estimating the total cost of the project, including the acquisition of the property and a 60-space underground parking garage, at around $9.25 million.
Christensen has been developing real estate in Greater Des Moines since forming Nelson Development with his business partner, Mike Nelson, in 2003.