The long-planned project to convert the Two Ruan Center office building in downtown Des Moines to apartments is getting a $15.9 million boost from the state.
It was the largest of eight projects across the state, including three in Des Moines, to share in a collective $28.1 million in support from the State Historical Tax Credit Program.
The 14-story Two Ruan Center is part of the Ruan Center complex, crowned with a 36-story tower that is Iowa’s second-tallest building after the nearby 801 Grand. The Ruan buildings are known for their distinctive, rusty Cor-Ten cladding.
The Iowa Economic Development Authority announced the tax credits Thursday, May 14, with Des Moines being the only city to receive more than one award.
The planned conversion was unveiled in 2023 but it took the city two years to complete the approval process, in part because of the historic nature of the building, which is listed on the National Register of Historic Places. The plan calls for 221 apartment units and ground-level retail in the 45-year-old building, with floors three through 13 entirely
The second floor will house some existing tenants, amenities and skywalk access in addition to apartments. The first floor will have a leasing center, gym and co-working lounge.
Construction was slated to begin in late 2024, with units becoming available in 2025 and 2026. The developers behind Two Ruan told the Des Moiners Register in February that contractors for the project were sorting out a revised timeline and that once a start date is set, the work could take 18 to 20 months to complete,
Which other developments in Des Moines received historic tax credits?
Elsewhere in Des Moines, the University of Commerce Building in Highland Park received just over $1 million in historic tax credits. Constructed in 1920, the building at 615 Euclid Ave. has deteriorated to below-normal condition, according to the Polk County Assessor’s Office.
Sonar Development Partners plans to reconfigure the first floor of the brick building to accommodate retail space and four apartment units, with another 10 units on the second floor, according to the Iowa Economic Development Authority. The city of Des Moines awarded $750,000 in Community Development Block Grant funds to the $4.5 million project in 2025.
Eight of the units will be reserved for residents who earn 60% or less of the area median income, while the other six units are available to households at or below 80% of the area median income, according to a memo to the City Council about the project.
With construction underway, a project to convert the former Elim Christian Fellowship of Des Moines into an 18-unit apartment complex received $1.1 million in historic tax credits. Spearheaded by local educational nonprofit Starts Right Here, STAY also would offer an alternative school with a dining center for unhoused youth in the 70-year-old building at 525 E Ninth St.
The nearly $10 million project raised $7.5 million largely through donations, organizers told the Register in February. The renovation is expected to reach completion by late July or early August.
Other projects receiving tax credits included school-to-apartment conversions in Sioux City and Waterloo.
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: Long‑delayed Two Ruan apartment plan lands major state funding
Reporting by Kate Kealey, Des Moines Register / Des Moines Register
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