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Commercial Real Estate Weekly | April 13, 2022
Seven luxury townhouses are planned at Grand Avenue and 40th Street in Des Moines. Each townhouse, which will sell for $1.3 million, will have an elevator. Architectural rendering by Simonson & Associates Architects
Luxury townhouses planned along Grand Avenue in Des Moines
By Kathy A. Bolten | Senior Staff Writer

Seven luxury townhouses are planned on nearly an acre on the northwest corner of Grand Avenue and 40th Street in Des Moines, the property’s new owner said.

4005 Grand Avenue LLC, an entity managed by architect Michael Simonson, purchased the property at 4005 and 4011 Grand Ave. and 520 40th St. from Saint Augustin’s Catholic Church for just over $1 million, Polk County real estate records show. The transaction was recorded April 1.

The property at 4005 and 4011 Grand Ave., a portion of which includes decades-old oak trees, is undeveloped. The parcel at 520 40th St. includes a residence that will remain.

Simonson, the principal of Simonson & Associates Architects in Des Moines, said he’s been approached in recent years by several people about the unavailability of upscale townhouses on the west side of Des Moines.

"They live in large, older homes; their kids are gone, but they don’t want condominium living," Simonson said. "They grew up in this area; they want to stay in this area. That’s why I embarked on this mission."

Simonson said five of the seven townhouses, which sell for $1.3 million, have been pre-sold. Five of the townhouses will face Grand Avenue; the other two will face 40th Street. Two-vehicle garages, each with charging stations for electric vehicles, will be behind the houses.

He said the oak trees on the property will remain.

Nine years of tax abatement is available for each of the townhouses, he said.

Each townhouse will have a private elevator that will connect the lower level and first and second levels, Simonson said. "We have designed [the townhouses] so that you can age in place. There are absolutely no steps. You go from the garage directly into the house. The showers have no thresholds. …

"This fits a niche that hasn’t been served."

K&V Homes, located in Urbandale, will build the townhouses, Simonson said.

When construction is complete, a homeowners association will maintain the residences’ exteriors, which will be primarily brick. Simonson said the brick will be similar to that found on single-family residences in the area.

Construction is expected to begin by late June and be completed by midsummer of 2023, he said. "All of the homes will be completed about the same time in order to not prolong construction activity once buyers have moved in."
WDM commission OKs rezoning for proposed golf venue
By Kathy A. Bolten | Senior Staff Writer

A proposal to build a golf entertainment venue on the southwest corner of Interstate Highway 35 and Grand Avenue in West Des Moines overcame the first of several hurdles this week when a city commission approved a rezoning request.
Developer Paul Cownie is partnering with a Fargo, N.D., developer to bring Suite Shots, a three-story building with a restaurant, bar and 60 climate-controlled bays from which golfers hit balls onto a range, to the 25-acre site on the south side of Grand Avenue. (Map at right.)

Some residents who live in the nearby Glen Oaks gated community oppose the $26 million development saying it doesn’t fit with the character of the area. They also have raised concerns that the proposed project will adversely affect the value of their property and increase traffic along Grand Avenue.

The West Des Moines Plan and Zoning Commission on Monday approved a request to amend the city’s comprehensive plan land use map and establish a planned unit development ordinance for the property. The commission voted 4-0 to approve the two requests. Two members abstained from voting.

West Des Moines city staff contacted 34 cities or counties that have similar golf entertainment venues in their jurisdictions about how the facilities affected property values, according to information provided the commission. Of the 14 responses the city received "none indicated a lowering of value due to proximity of the golf facility," according to the staff report.

The staff also asked 24 planning departments with golf entertainment venues about the complaints regarding the facilities. "Eleven responses were received with information provided to staff suggesting that while there may have been initial ‘fear of the unknown; concerns, overall there have been very few complaints and, the facilities have been embraced and [have] been good for the community," according to information provided the commission.

One community noted noise issues with an outdoor patio, but the situation was remedied when outdoor concerts were prohibited and a security guard hired, according to the staff report.

The West Des Moines City Council is scheduled to vote on the zoning request at its meeting on Monday.

Related article: Legal action threatened if zoning is changed to allow golf entertainment venue
Annual Commercial Real Estate Forum set for April 20

The Business Record's annual Commercial Real Estate Forum is returning to its original in-person format this year after being held virtually the past two years because of the pandemic.

The event will be from 7 to 9 a.m. April 20 at the Sheraton West Des Moines Hotel, 1800 50th St. in West Des Moines. The program starts at 7:30 a.m.

The 2022 CRE Forum includes a panel of people from several sectors of the commercial real estate industry who will talk about projects underway or planned in the Greater Des Moines area. The panelists will also discuss current development-related topics such as rising interest rates, the supply chain and international turmoil.

Panelists include:

• Michael Anthony, senior project manager, Opus Group.
• Marquas Ashworth, entrepreneur, distiller and developer.
• Matt Brown, president, Formation Group.
• Karl Chambers, CEO/president, Imprint Architects.
• Adam Petersen, president, PDM Precast.
• Tim Rypma, president, Rypma Properties.
• Tina Smothers, principal, Optimum Real Estate Management.

Also during the forum, the 2022 Iowa State University Ivy College of Business Real Estate Professional of the Year – Brad Schoenfelder, Midwest region president for Ryan Cos. US Inc. – will be recognized.

For more information or to register, click here.


NOTABLE TRANSACTIONS
The real estate transactions from Polk and Dallas counties include information about transactions of $1 million or more including the sale of single-family houses as well as other transactions of interest.

Polk County
Chase Bank buys property along Ingersoll Avenue in Des Moines

JP Morgan Chase Bank N.A. has purchased property along Ingersoll Avenue in Des Moines, Polk County real estate records show.

The financial institution, located in Columbus, Ohio, paid 3101 Ingersoll LLC $1.87 million for property at 3101 Ingersoll Ave. (pictured) in Des Moines, records show.

The nearly quarter-acre parcel is located on the northwest corner of the intersection of 31st Street and Ingersoll Avenue. The 9,052-square-foot, two-story office building, which had been occupied by Buyers Realty, was constructed in 1957.

The property is valued at $686,000.

During the past year, Chase Bank, the U.S. consumer and commercial banking business of JPMorgan Chase & Co., has been expanding its presence in the Des Moines area.

It plans on constructing a new building at Mills Civic Parkway and Stagecoach Drive in West Des Moines. It opened a branch at 6150 S.E. 14th St. in Des Moines in February, and in August 2021 it opened its first retail branch in Iowa at 3627 Merle Hay Road.

The transaction involving the property on Ingersoll was recorded March 28.  

Hotel group buys land in Ankeny's Prairie Trail development

A hotel group based in Coralville has purchased land in the District, the commercial portion of Prairie Trail, a planned development in Ankeny, Polk County real estate records show.

PT 2021 Hotel Associates LLC and Kinseth PT TIC Owner LLC, entities managed by Kinseth Hospitality, paid DRA Properties LLC $1.75 million for the parcel, records show.

Construction of a 133-room Home2 Suites and Tru by Hilton is expected to begin this spring, Ashley Johnson, marketing director for DRA Properties LC., has said. The hotel will be located south of Kirkendall Public Library. It is being developed by Kinseth Hospitality, which operates the Residence Inn by Marriott, also located in the District.

The transaction was recorded March 31.

In other transactions:

Kutscher Holdings LLC, located in West Des Moines, paid Hurd Waukee 2 LLC $1.36 million for property at 801 S.W. 63rd St. in Des Moines, records show. The property includes a 5,000-square-foot retail building constructed in 2002. The building is occupied by Napa Auto Parts. The property is valued at $634,000. The transaction was recorded March 28.

William C. Knapp LC, located in West Des Moines, paid Nelson Development LLC $6.33 million for property at 4020 Merle Hay Road in Des Moines, records show. The 1.4-acre parcel includes a 12,987-square-foot medical office building constructed in 2009. The property is valued at $2.8 million. The transaction was recorded March 28.

LDR Iowa VI LLC, located in Scottsdale, Ariz., paid James Rittgers and others $1.78 million for property at 5323 Meredith Drive in Des Moines, records show. The property includes 5.7 acres on which mini-warehouses are located. The property is valued at $1.7 million. The transaction was recorded March 29.

KGAF LLC, located in Ankeny, paid Scott Faulkner and Caitlin Faulkner $1 million for property at 742 S. Ankeny Blvd. in Ankeny, records show. The property includes a 10,094-square-foot office medical building constructed in 2005. The building is located on 1.4 acres. A veterinary clinic is located in the building. The property is valued at $1 million. The transaction was recorded March 29.

Git N Go Convenience Stores Inc. paid Frank and Melba Scaglione $1.3 million for property at 3000 and 3030 Merle Hay Road, records show. The 0.42-acre parcel at 3000 Merle Hay Road includes a 2,604-square-foot convenience store built in 1979 and remodeled in 2005. A Git N Go occupies the store. The property is valued at $560,500. The 0.8-acre parcel at 3050 Merle Hay Road includes a 6,756-square-foot office building constructed in 1979. The property is valued at $651,000. The transaction was recorded April 1.

AJ Real Estate LLC, located in Clive, paid Scott and Margaret Gaulter $1.68 million for property at 9451 Swanson Blvd. in Clive, records show. The property includes a 19,886-square-foot one-story office/warehouse constructed in 1998. The parcel is nearly 2 acres. The property is valued at $1.42 million. The transaction was recorded April 1.

McKinley Duplexes LLC, located in Des Moines, paid Larry and Kathleen Scott just over $1 million for property at 4800 S.W. Third St. and 330 McKinley Ave. in Des Moines, records show. The property at 4800 S. W. Third St. includes six duplexes, each with 1,456 square feet of living space. The residences were built in 1968. The property is valued at $800,500. The property at 330 McKinley is also a duplex that has 1,456 square feet of living space. The property is valued at $154,000. The transaction was recorded April 1.
Boulder Ridge Duplex LLC, located in Altoona, paid Bridge Pointe LLC $2.25 million for property at 407 W. Bridge Road in Polk City, records show. The property (pictured) includes a 11,400-square-foot neighborhood shopping center that was built in 2016. The property is valued at just over $2 million. The transaction was recorded April 1.

PRKG 2189 LLC, located in Ames, paid IA-KY $1.35 million for property at 6700 N.E. 112th St. in Mitchellville, records show. The property includes more than 162 acres, most of which is cropland. A single-story house built in 1890 is located on the property. The transaction was recorded April 4.

Station Crossing Farm LLC, located in Des Moines, paid Heritage Ridge LLC $2.14 million for property west of Iowa Highway 141 and north of Northeast Station Crossing Drive in Jefferson Township, records show. The property includes nearly 22 acres, 4.4 acres of which is a forest preserve. The transaction was recorded April 4.

Eesh LLC, located in Osceola, paid Jai Ganesh Inc. $2.2 million for property at 300 34th Ave. N.W. in Altoona, records show. The property includes three-story, 86-room hotel constructed in 1989. A Best Western Plus is located in the building. The property is valued at $1.76 million. The transaction was recorded April 4.

DM Industrial Prop LLC, located in Cedar Rapids, paid Enseva LLC $1.2 million for property at 1501 34th Ave. N.W. in Altoona, records show. The property, located east of Facebook Inc.’s database warehouse, includes 0.68 acres of undeveloped ground. The transaction was recorded April 6.

Todd and Teri Ross paid Carl Roose $1.2 million for property at 6231 S.E. Sixth Ave. in Pleasant Hill, records show. The property includes nearly 20 acres, 12 of which is crop land, and a single-family house built in 2009. The transaction was recorded April 6.

TL Park Ave LLC, located in Johnston, paid Blue Marble Investments LLC $8.2 million for property at 5016, 5020, 5050, 5100 and 5150 Park Ave. in Des Moines, records show.

The property at:

• 5016 Park Ave. includes a 62,400-square-foot office/warehouse constructed in 1996. The warehouse is located on 5.5 acres. The property is valued at $2.95 million.
• 5020 Park Ave. includes a 24,000-square-foot office/warehouse built in 1988 and located on 1.2 acres. The property is valued at just over $1 million.
• 5050 Park Ave. includes a 15,000-square foot office/warehouse built in 1985 and located on 1.2 acres. The property is valued at $564,000.
• 5100 Park Ave. includes an 18,000-square-foot office/warehouse built in 1979 and located on 1.1 acres. The property is valued at $776,000.
• 5150 Park Ave. LLC includes a an 18,000-square foot office/warehouse built in 1980 and located on 1.3 acres. The property is valued at $779,000.

The transaction was recorded April 7.
Dallas County
Clayton Properties Group Inc., located in Lee’s Summit, Mo., paid Stratford Crossing LLC $1.28 million for 24 building residential lots west of North 10th Street in northwest Waukee, Dallas County real estate records show. The transaction was recorded April 1.

K&A Investments LLC, located in Urbandale, paid Accurate Land Co. Inc. $2.63 million for 47 residential building lots north of Meredith Drive at Northwest 167th Street in Urbandale, records show. The transaction was recorded April 4.
NATIONAL/REGIONAL NEWS

Multifamily deals continued to pile in during busy first quarter: Multifamily deals continued to occur in the first quarter on the heels of record investment sales volume in 2021, writes Bendix Anderson for WealthManagement.com. Last year, the rents residents paid for apartments rose by an average of 13% across the U.S., according to the economists the CBRE Capital Markets. That kind of rent growth offset any hesitation by investors due to uncertainties caused by the pandemic or the highest rate of inflation in more than 40 years, writes Anderson.
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