Developers plan condos priced at up to $1.6M at historic Grand Avenue church

Two major players in Des Moines' multifamily housing market plan to convert portions of a vacant, historic church on Grand Avenue into high-end condominiums for sale between $355,000 and $1.6 million.

Harry Bookey and Pamela Bass-Bookey are under contract to purchase the First Church of Christ, Scientist, at 3750 Grand Ave., a massive, stone edifice that has sat vacant for nearly 10 years since the congregation moved to West Des Moines.

The couple wants to preserve about half of the church's structure — including its facade, grand main entrance and stained-glass windows — as well as construct a new eight-story condo building with 42 owner-occupied units.

If built as proposed, the $35 million project would bring to the market luxury condo units at a price rarely seen in Des Moines. It would be just the second newly constructed multi-unit condominium building in the city in a decade.

"The condo market has been so challenging, financially, to pull together in past history, so it's kind of testing a new area of the market we haven't seen in a long time," said Carrie Kruse, economic development coordinator for Des Moines.

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The First Church of Christ, Scientist built its three-building campus on the city's west side in 1931. The church moved to its current location, at 801 Grand Ave. in West Des Moines, in 2010.

The buildings on the old campus, sold to neighboring WesleyLife in 2012, have since experienced "rapid decline" due to vandalism and water damage, and the Polk County assessor recently downgraded them to below-normal condition, according to the city.

WesleyLife, which operates housing for aging residents, had planned to expand its offerings with condos similar to those the Bookeys propose, said CEO Rob Kretzinger. But the company realized the level of historic rehabilitation needed to preserve the structure was not in its wheelhouse.

Several developers have proposed projects on the site, but all wanted to demolish the church. The Bookeys are known for their historic restoration of the Temple for Performing Arts, and WesleyLife appreciated the couple's vision for the church, Kretzinger said.

"It was our intent to see it reinvented and repurposed. That was important to us," he said. "We think the type of development they're doing is fantastic for the neighborhood."

The couple plans to preserve the rectory, Sunday school wing and the existing courtyard. The sanctuary is beyond saving, said Kate Miller, senior asset manager of BH Equities, a real estate investment firm owned by Bookey and Bass-Bookey.

Existing structures would be converted into common and amenity space for future tenants, including a club room, cyber cafe and lounge, fitness center, library and two guest suites. A pool, sundeck and a dog park would be added outside.

Each unit would have 9-foot-tall ceilings, private patio space and smart home technology. The units would range in size from 1,100 to 3,000 square feet, with one, two or three bedrooms.

The first two floors would be a 36-space garage.

Real estate agents are now tasked with finding buyers before demolition and construction can start. The company wants to sell 70% of the units before the March 2020 target date to begin demolition, Miller said.

"We need to see that the market will support this project," she said.

Darla Willett-Rohrssen, Realtor at Iowa Realty who specializes in downtown housing, said condos have become more popular in recent years as the market has recovered from the 2008 financial crisis, when many buildings were forced to convert their for-sale units to rentals.

"We're just now starting the new layer of condo buildings coming in," she said.

In the last two years, Willett-Rohrssen has sold 45 townhomes, ranging from $500,000 to $750,000, at The Banks in the East Village's new Bridge District. She sells primarily to adults with older children, whether they're empty-nesters or are soon to be. She also sells to young couples looking to downsize their belongings and shed responsibilities, such as a lawn care and other home maintenance.

"People don’t line up to buy a $750,000 house," she said. "There is a buyer, but I do think it's hard to put a pinpoint on the pace."

A quick scan of websites selling condominiums in Des Moines show most are listed for $140,000 to $260,000. A Des Moines couple recently purchased a top-floor unit at the Park Fleur Condominiums, at 3131 Fleur Drive, for $1.1 million, according to the assessor's office.

Developers haven't built condominiums in Des Moines for several years. Edison, 400 SW 7th St., is currently under construction. It's the first owner-occupied building to be built downtown since 2009, when the Fourth and Court condos opened across the street from where the downtown Hy-Vee now stands.

"This is a challenging project, but an exciting opportunity to preserve the past while tying into the dynamic development of our city's future," Booker said in a news release. "For the project to move forward, there are still certain city hurdles and presale requirements, though we are confident others will see its potential."

The Bookeys' company, BH Equities, is among the nation's largest owners of multi-family housing, according to the National Multifamily Housing Council. It had 58,411 units across the United States in 2019, making it the 11th largest.

Bookey has been involved in several high-profile projects in Des Moines. He was an investor in multiple Court Avenue housing developments, including the renovation of the Spaghetti Works building and the construction of two condo developments. He was also involved in the project to convert the Hotel Randolph into apartments.

The Des Moines City Council recently approved preliminary terms of a development agreement for the church project, which would provide 10 years of tax increment financing equal to $4.3 million. The project would place the building back on the tax rolls; it has been exempt since the church was constructed in 1932.

Kim Norvell covers growth and development for the Register. Reach her at knorvell@dmreg.com or 515-284-8259.

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