After efforts to save a crumbling historic building in Des Moines' Highland Park business district failed, a neighborhood revitalization organization wants to demolish the structure to make way for an apartment building that includes affordable housing and retail space.

Invest DSM last month acquired the century-old Tudor-style building that sits prominently on the southwest corner of Sixth and Euclid avenues for $440,000, according to executive director Amber Lynch. The historic neighborhood has undergone a renaissance over the last several years, in part because Invest DSM, a nonprofit collaboration between Des Moines and Polk County, has targeted some of its neighborhood revitalization work there.

Lynch said she empathizes with many residents who are upset over the loss of the historic building but is hopeful the building's transformation will serve as a catalyst for more housing and development on Des Moines' north side.

"We are hoping that we can bring something that ... really better serves the community now going forward into the long term," she said. "Something that is exciting and offers spaces that don't exist in the area today. And that as we do that, any new development would compliment the character of the area and hopefully honor the history of the building in some way."

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Efforts to save the building failed

Built in 1915, the three-story structure at 3524 Sixth Ave. includes 12 apartment units on the second and third floors and has multiple commercial spaces that once housed a dentist's office, Smith's Highland Park Pharmacy, a laundromat and more recently, a record store.

But the 12,000 square-foot building fell into disrepair primarily due to leakage on the west end of the building, which has caused water pooling in the basement, crumbling plaster, as well as moss and mold issues, Lynch said. It's been vacant since 2018.

Des Moines-based Benchmark Real Estate Group sought to rehabilitate the building and convert it into 14 studio apartments with two commercial spaces. But even with multiple tax incentives, developers had a substantial funding gap. Ultimately, developers determined the $4.8 million needed to overhaul the building outweighed the revenue it would produce, Lynch said.

Additional developers who explored renovation also decided the structure was not economically viable.

Invest DSM purchased the building in early March. Lynch said the vision for The Commons at Highland Park is a three- to four-story mixed-use building with 40 to 50 studio, one- and two-bedroom units that rent at both affordable and market rates.

The building would include ground-floor commercial space, particularly for small or start-up businesses. It would be pulled back from the street to leave room for wide sidewalks and there could be space for parking. The site would add to Invest DSM's three existing properties to the west, which also is planned for mixed-use development.

Council member says demolition necessary for progress

Lynch said discussions with neighbors and stakeholders have been a mixed bag. While some understand the need to do something different, there are residents who would like to save the building at any cost.

"We understand that there is a loss here," Lynch said. "We understand that this building has been a prominent feature of the area for over 100 years and it is sad to see that go away."

But Lynch said the decision came down to a question of the best long-term outcome for the neighborhood and whether the city should pour "tons" of taxpayer dollars into a project just to end up with 14 housing units and two commercial spaces.

"Or do we take that same money and put it into a new development project where we can get more housing and better spaces for today's needs?," she said. "What's the opportunity cost of trying to go down that path versus just bringing in something that is new and hopefully is better and can have kind of that lasting impact?"

Council member Linda Westergaard, who represents the city's northeast side, expressed gratitude toward Invest DSM's plan and said demolition to replace the building is "exactly what needs to be done."

"That building has been in trouble for quite a few years," she said. "So it's best that it come down. It just cannot be saved."

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Westergaard said revitalization that has already taken place in the Highland Park and Oak Park neighborhoods has garnered interest in the upcoming project, and that only will grow after it's completed.

"It's a great corner," she said. "It's connected to the neighborhoods. People can go for a walk on Saturday morning and be in the Highland Park/Oak Park business district. It just makes sense."

To preserve some of the building's history, Invest DSM intends to salvage some of the interior trim, one of four Murphy bed cabinets, original door hardware and bookcases, Lynch said.

The building is slated to go through asbestos removal this week. The request for a demolition permit will go through the city's Landmark Review Board in the next few weeks before the Des Moines City Council will get final approval.

Costs for both asbestos and demolition are estimated at about $300,000, according to Lynch. After approval, Invest DSM plans to open a request for bids to complete the project. Lynch expects the new building could cost up to $12 million but it depends on what the developer who ultimately wins the bid plans to do.

Demolition could happen as soon as May, she said.

Virginia Barreda is the Des Moines city government reporter for the Register. She can be reached at vbarreda@dmreg.com. Follow her on Twitter at@vbarreda2. 

This article originally appeared on Des Moines Register: Des Moines building to be demolished may become affordable housing