Joel Aschbrenner

jaschbrenn@dmreg.com

A local development team wants to build a 29-story tower on the empty lot where the Younkers department store once stood in downtown Des Moines.

Blackbird Investments is already renovating the portion of building that survived a massive fire in March 2014. It now wants to build a $60 million high-rise on the empty lot next door, at Seventh and Walnut streets.

The company's plans call for 220 residential units that could be sold as condos or rented as apartments, a hotel with roughly 150 rooms and some storefronts on the ground level.

“It will definitely change the downtown skyline,” said Chris Diebel, a spokesman for Blackbird.

The proposal marks a step forward for the devastated Younkers site and the latest flash in downtown's apartment boom.

Blackbird is the second real estate firm trying to build a high-rise amid the boom. Local developer Justin Mandelbaum recently proposed a $107 million, 32-story apartment tower near Court Avenue. Both developers say they will add to the skyline and offer luxury apartments that will stretch the upper limits of the city's rental rates.

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Blackbird’s proposed tower, which was first reported Tuesday by The New York Times, would be taller than all but a handful of buildings in Des Moines. If built as planned, it would have a few more floors than the Plaza condo building and the Financial Center offices.

The project still needs to be approved by City Hall. The developers are likely to seek financial incentives from the city for the project, which will be subject to a vote by the City Council.

No developer has been able to build a high-rise in Des Moines in recent years. The last 20-story structure, the EMC Insurance Building, was constructed two decades ago. A plan to build a roughly 18-story parking garage and apartment tower was scrapped earlier this year in favor of building two shorter projects on adjacent lots.

The future of the empty lot where the Younkers building burned has been the subject of much speculation.

Blackbird Investments bought the property after the fire and began renovating the remaining portion of the building into 60 apartments. For months, company officials said they were working on plans for the empty space, but they remained mum on the details.

Downtown observers have been excited about possibilities for the site because it sits in the heart of downtown, is connected to the skywalk and faces Walnut Street, which the city just started renovating into a pedestrian-friendly retail area.

Justin Doyle, a partner in Blackbird Investments, said the firm wants to start construction this fall.

“It would be nice for the city of Des Moines to not have to stare at a hole in the ground any longer than we have to,” he said.

The 250,000-square-foot tower would be made of steel and concrete. Glass would cover 75 percent of the exterior. The top two floors would have penthouse units with private terraces.

“It will leave an architectural mark,” Doyle said.

Doyle said to build anything less at that site would be a “wasted opportunity.”

Des Moines-based Neumann Monson Architects is designing the building. A general contacter has not yet been selected.

Building condos would mark a new turn for the local real estate market. The Des Moines condo market crashed during the recession. And in recent years, with lenders shy about condo projects, developers have turned to the flourishing apartment market instead.

Doyle said the residential units in the tower would be built so they could be sold as condos. He expects most would be rented at first, but if the condo market starts to rebound they could be sold.

A hotel has not yet been picked for the project. Doyle said Blackbird is working to sign a boutique hotel operator for the space. The hotel would also have access to banquette space and a restaurant, thanks to the Younkers Tea Room.

The famed Tea Room on the top floor of the Younkers building was a beloved venue of several generations of Des Moines residents. It sustained heavy smoke damage in the fire, but Blackbird Investments plans to restore the room and operate it as a reception venue and restaurant.

Plans call for about 7,000 square feet of street-level retail space facing Walnut Street. The entrance for the residential units and the hotel would face Seventh Street.

Mandelbaum’s proposed tower, called The Fifth, would also include a mix of uses. Plans call for high-end apartments, a parking garage, a movie theater, a climbing gym and restaurants. The tower would replace a city-owned parking garage on Fifth Street, between Court Avenue and Walnut Street. Mandelbaum reached a preliminary agreement with the city on incentives for the project last month.

Blackbird’s proposed tower is just the latest project for the group. The firm is also renovating the Clemens Building (the former home of Raccoon River Brewing Co.) into apartments and a restaurant, and recently received tax credits to make apartments out of the old Fort Des Moines Army barracks on the south side of the city.

Partners in Blackbird Investments include local engineer Harry Doyle; his sons, Justin and Ryan Doyle; real estate developer Hugh O’Hagan; and T.J. Jacobs, a commercial real estate broker.

MORE: After months of delays, work resumes at former Younkers building

Assistant City Manager Matt Anderson, who oversees the city’s economic development efforts, said Blackbird Investments has not yet brought plans to City Hall, but he is eager to see what the company has planned.

“Whatever it is they are working on, I guarantee you it will be spectacular, because they don’t do anything half-baked, so I’m looking forward to when they unveil it,” he said.

Tallest buildings in Des Moines:

801 Grand: 44 stories

Ruan Center: 35 stories

Des Moines Marriott-Downtown: 32 stories

Financial Center: 25 stories

The Plaza: 25 stories

Hub Tower: 20 stories

EMC Insurance Building: 20 stories

Proposed:

The Fifth: 32 stories

Blackbird Investment tower: 29 stories

Source: Polk County Assessor