In 2015, Tim Schutte’s banker told him it would take three years to convert 54 apartments at the Kirkwood Hotel into condominiums and sell each of the units. Schutte, broker owner of Exit Realty Capital City in Des Moines, thought he could do it in two. 

“For my first project, three made more sense,” Schutte said. 

As it is, Schutte has sold or has pending sales for 39 units, all sold after leases expired and units received a fresh coat of paint at a minimum. It has been a waiting game that has left Schutte convinced that downtown Des Moines can support a for-sale condominium market at the high and medium prices.

On a handful of units, Schutte upgraded cabinets, countertops, floors and showers, and reached outside his typical price range of around $185.90 per square foot to $245. The more expensive units sold before he had a chance to market them.

When he started the conversion, few developers were enthusiastic about the for-sale condo market. Hubbell Realty Co. was having success, but overall sales were slow.

“I think to some degree I am an experiment so others can see how well they sell,” Schutte told the Business Record in 2015.

These days, Hubbell is talking about million-dollar condos for the site of the former Riverfront YMCA.

Schutte wouldn’t mind taking another stab at condo development.

“If the opportunity came up, I’d certainly look at it,” he said.

Schutte must wait for leases to expire before putting units on the market. At times, he has had just one unit on the market. Currently, he has two. In the last two months, Schutte estimates he has sold six or seven units.

Patience has paid off, even if he has to admit that his banker was right.

“I certainly know a lot more than before,” he said.