Pagliai's Pizza building hits the real estate market at $5 million, business will stay open

Iowa City is home to many legends, and Pagliai's Pizza is one of the most iconic.

Pagliai's has served the Iowa City community for 60 years with plans to continue despite the fifth-generation-owned building being put up for sale.

The Pagliai's Pizza building, located at 302 E Bloomington St, hit the real estate market last week with an asking price of $5 million. The three-story building contains Pagliai’s Pizza,16 apartments, and a laundromat next door.

While the building is being sold, the business will continue as usual. According to owner Antonio Fontanini, Pagliai's will lease the restaurant space for another seven years.

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A storied history

The building in the northside neighborhood was built in 1877 by Joseph Slezak, the great-grandfather of current building owner Gary Skarda. Skarda is the fifth generation to own the building and even grew up there.

Skarda's decision to sell was challenging, noting in an interview with the Daily Iowan that managing the property has gotten harder as he ages.

Rex Brandstatter, the building's realtor, said it has been used in various ways since it was built, but its original purpose was to be a dance studio. The building has been home to a hotel, a saloon, and a grocery store.

The laundromat next door was once a horse stable when the main building was a hotel.

Putting the building on the market is rare, especially in a historic neighborhood, though according to the listing, it is not on the Registry of Historic Places.

The listing has already drawn interest, with some potential buyers looking to tear it down, remodel it, and rent it as is. With seven years left on the lease, Pagliai's hopes the new owners of the building will honor the contract. Fontanini does not want to move and would like to buy the building to guarantee the pizza joint keeps operating, but he said the asking price is too high.

“Hopefully, whoever buys the building will honor that lease and then maybe entertain a new one,” Fontanini said. “Maybe we can just stay put. But we’re kind of at the mercy of whoever buys it.”

Pagali’s Pizza has been open since 1957 and has been in the building since opening day, with alums returning yearly to eat at the restaurant and are used to the location.

Jessica Rish is an entertainment, dining and business reporter for the Iowa City Press-Citizen. She can be reached at JRish@presscitizen.com.

This article originally appeared on Iowa City Press-Citizen: Pagliai’s Pizza fifth generation building owner to sell property