A project to convert Two Ruan Center from a 14-story office hub to an apartment complex is regaining momentum after a two-year wait for a permit, and another commercial-to-residential conversion project has joined the growing number either planned or underway in downtown Des Moines.
The city has given the go-ahead for the Two Ruan project at 601 Locust St. and City Council on Monday, Feb. 23, approved the final terms of a development agreement with JDS Real Estate for the other project: the conversion of the three-story Davidson Warehouse building at 108 Third St.
Is the Two Ruan conversion project still on?
Construction on the Two Ruan project initially was slated to begin in late 2024, with units becoming available in 2025 and 2026. Scott Wells, an associate partner at GastingerWalker& Architecture, said contractors for the project are sorting out a revised timeline.
Once a start date is set, Wells said, the work could take 18 to 20 months to complete.
He said part of the reason for the slowdown is that the project’s design had to undergo a more stringent approval process because the 45-year-old building, with its unusual, naturally weathered Cor-Ten steel exterior, is considered historic. It’s part of a complex with the 36-story Ruan Center, Des Moines’ second-tallest building, and was added to the National Register of Historic Places in 2025.
“It’s a historic building… and so that adds a layer of complexity,” Wells said. “So there were some approval processes that needed to go through for that aspect of the project.”
Has anything changed with the Two Ruan project?
Most of the design for the project remains unchanged, Wells said. However, a proposal for a rooftop patio with views of the Iowa Capitol and the Des Moines River is on pause until the residential portion of the project is completed, he said.
“There will be opportunities at later times to upgrade parts of the building if they choose or make some decisions in the field, not at a larger scale, but more if they want to add another type of amenity space or a different type of wall color,” Wells said. “But the majority of the building is pretty set at this point.”
Two Ruan will house 221 units. Floors three through 13 will be completely residential, with the second floor housing some existing tenants, amenities and skywalk access in addition to apartments, Wells said. The first floor will have a leasing center, gym and co-working lounge.
Wells said he expects the project’s cost to rise from the original estimate of $81 million.
The project will be similar in scale to the ongoing conversion of the nearby Financial Center, which will have 209 apartments occupying 18 of its 25 floors in a development called Mezzo. Nearby, the 33-story 515 Walnut is under construction, with 390 apartments planned.
In part because of conversion projects, office vacancy rates rebounded in the central business district during the final quarter of 2025 after reaching an all-time high of 28.7%, commercial real estate services company CBRE reported in January.
What are the plans for the Davidson Warehouse conversion?
Work on a smaller, residential conversion project is expected to start in mid-2026, according to a memo to City Council. Located on Third Street off Court Avenue, the Davidson Warehouse will house 36 apartment units, mostly studios and two-bedroom apartments, according to the site plan.
The project’s developer is seeking state and federal historic tax credits while working with the city Historic Preservation Office on the design for the 114-year-old building’s designs, according to the memo.
The building has had many uses over the years, including as a wholesale grocery warehouse. Projects in 1988 and 2015 transformed it into office space while retaining traits of the historic warehouse, such as exposed heavy timber framing and brick perimeter walls, according to an application for the building’s listing on the National Register of Historic Places.
The conversion of the 33,540-square-foot building is estimated to cost $7.4 million and is slated for completion in mid-2027, according to the council memo.
Kate Kealey is the growth and development reporter for the Register. Reach her at kkealey@registermedia.com or follow her on X at @Kkealey17.
This article originally appeared on Des Moines Register: Two Ruan Center apartment conversion gets go-ahead from Des Moines
Reporting by Kate Kealey, Des Moines Register / Des Moines Register
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