New angle: Diagonal Keo Way building that housed Reliable Rug Co. getting $4.8 M facelift

The former Reliable Rug Co. on Des Moines' Keosauqua Way may soon have new life as a retail and office building under a planned $4.8 million historic renovation. 

West Des Moines-based Aust Real Estate hopes to start a rehabilitation of the diagonal structure this spring, reopening it as commercial offices and retail space in 2021. The building, with its boarded-up windows and storefronts and crumbling brick, is part of the gateway into downtown Des Moines — one of the most traveled streets downtown and an area where development efforts have focused over the last seven years. 

Built between 1910 and 1928, the building at 1201 Keo Way — actually a grouping of four connected structures known as the Ferrington Block — has been vacant for decades. Several developers have proposed projects there but none have gone as far as Aust Real Estate's plans, said Ryan Moffatt, the city's economic development coordinator. 

"I personally can't think of a better candidate for historic renovation downtown," Moffatt said. " ... We're thrilled with the continued interest in the reuse of this building."

The building sits at a diagonal, modified in 1920 when Keosauqua Way was constructed directly through it. A portion of the building was removed to accommodate the street.

It was home to the Reliable Rug and Carpet Cleaning Co. until the company closed in the mid-1980s. Ferrington Block is named after the company's longtime owner, Emma Owens Ferrington, who was widely known as one of the city's most accomplished businesswomen.

She took over ownership of the rug business when her husband died in 1899. Ferrington moved the business from Fort Des Moines on the city's south side to Keo Way when the building was constructed. 

"Three generations of women ran this thing and grew it at time when it was not the best time to be a female business owner," said Matt Aust, who owns Aust Real Estate with his wife, Mindy Aust, the project's architect. "It's a fascinating property."

The Austs plan to restore the boarded-up windows and storefronts along Keo Way and 12th Street, put back an original skylight and install historically relevant carriage doors.

A landscaped terrace will occupy the corner of Keo Way and Crocker Street, where the team is considering an outdoor cafe. 

They envision leasing the space for offices or retail, and could accommodate restaurants, too. An apartment is planned for the southernmost corner of the second floor, where the space had been used as living quarters since the building opened. 

The renovation will include an upgrade of the building's mechanical and HVAC systems, all-new windows, construction of a new elevator and asbestos removal. 

"We're super excited to bring it back to its creative significance," Mindy Aust said. 

Aust Real Estate is working with the State Historic Preservation Office for historic state and federal tax credits. Des Moines has agreed to give the developers a tax increment financing package equal to about $505,000 of the project's costs. 

Given the lot's configuration, the city believes it would be nearly impossible to build something new there, making a historic rehabilitation with financial assistance the best option. 

"The site is located on a highly visible and prominent gateway into downtown," Moffatt wrote in a memo to the Urban Design Review Board, which approved the project on Tuesday. "Getting the building rehabilitated and put back into productive use will make significant progress with cleaning up the Keo Way corridor, and will help stabilize a corner that would otherwise be very difficult to redevelop due to the unique shape and limited lot land area of the site."

The building is assessed at $90,700 and is expected to increase to about $1.3 million when the project is complete.

A billboard located on the roof will remain — it has a lease until 2036.

► More:See inside the new Cityview 34 townhomes at I-235 and Keo Way

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

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