Historic Maytag offices to become apartments

A pair of century-old office buildings that once served as Maytag's headquarters in Newton could see new life as loft apartments.

West Des Moines-based developer Hubbell Realty Co. plans to renovate the brick buildings into 42 residential units called Factory Lofts.

For Hubbell, one of Des Moines' largest developers, the project signals the company's growing reach outside the metro area.

For Newton, the project represents the continued rebound from Maytag's departure. The appliance maker, which once employed about 4,000 people at its headquarters and manufacturing plant in Newton, shed jobs for years before its parent company Whirlpool closed all of its Newton operations in 2007.

The $7 million project, which gained initial approval from the Newton City Council last week, hinges on the allocation of low-income housing tax credits and historic tax credits. All but six of the units will be income-restricted. The Iowa Finance Authority received applications for low-income housing tax credits from Hubbell and other developers this week and is expected to announce in March which projects receive the incentives.

If all goes to plan, construction would begin around the summer of 2015 and would be complete about a year later, said Kris Saddoris, Hubbell's vice president of development.

Factory Lofts is Hubbell's second recent project outside the Des Moines metro area. The company is renovating a former car factory in Grinnell into 77 apartments called Spaulding Lofts. Work on the interior has begun and apartments are expected to become available starting in early 2016.

"In order for us to expand, we need to look outside the metro," Saddoris said. "Once we put a pin in Grinnell, it really makes sense for us to look at all those communities along the I-80 corridor."

Hubbell also has property in Sioux Falls, S.D., but does most of its work in Des Moines and its near suburbs. But the company will continue to look for renovation projects in small towns around central Iowa, Saddoris said.

"Most of the historic buildings in Des Moines have been renovated," she said. "There are still bits and pieces here and there… but the opportunities are not as good as they were a few years ago."

The Newton buildings, each painted with bright block letters reading "THE MAYTAG COMPAY," stand three and four stories tall. Known around the city as Maytag buildings 1 and 2, they have sat empty since 2007.

Officials in Newton say the town of about 15,000 has gained more jobs in recent years — through the opening of the Iowa Speedway and the recruitment of other employers — than it lost with Maytag's departure.

The city offered an incentive package for the project that included a grant and annual tax rebates worth about $580,000.

More housing to support workers and students is needed, said Bryan Friedman, director of finance and development for the city. The buildings, 402 W. Fourth St. N., are adjacent to Des Moines Area Community College's Newton campus and the city's downtown.

"It will mean a $7 million investment into downtown, the opportunity for housing our workforce and bringing more activity and investment into Newton," Friedman said. "We're really excited to have a major developer like Hubbell come to our community and make such a significant investment."

Homes sold faster in November

The number of homes for sale in the Des Moines metro area shrunk last month and those available sold quickly, a report released Wednesday by the Des Moines Area Association of Realtors shows.

There were 3,574 homes for sale in November, down 11 percent from 4,020 during the same month last year.

Homes sold in November had spent an average of 81 days on the market. That's down from 85 days for the same month last year and 84 days last month, the report said.

In his monthly real estate blog, former association president and local Realtor Les Sulgrave said homeowners appear to be taking a "wait and see" approach to selling.

"It is my belief that many homeowners have in a sense taken the last couple of years to improve and update their homes," he said. "As a result, I predict that 2015 will be the year that we see a rise in listing inventory as well as home values due to these improvements. As is common in Iowa, don't expect dramatic swings in any direction."

Local realtors say they have seen strong demand for homes between $200,000 to $300,000, but relatively few first-time buyers.

The median sale price in November was $162,000, up from $160,000 the same month last year.

Des Moines-area agents wrote contracts for 729 home sales and closed 755 sales in November, compared with 790 contracts and 727 sales closed during November, 2013, according to the report.