Brian Martin, chief executive officer of Threshold Capital, closed the deal on the long-troubled West Des Moines shopping center for $11 million. The Iowa developer is not looking to patch up the old structure. He wants to tear it down and build a high-density, open-air village featuring housing, offices, and entertainment. The projected cost for that transformation sits between $300 million and $350 million.
The biggest obstacle isn’t the money. It’s the paper trail. A nearly 50-year-old lease with JCPenney gives the department store significant control over the property. According to the Business Record, this agreement allows JCPenney to block major changes near its footprint, including new buildings or internal roads. Martin admits that unwinding this legal knot is the critical first step. “It’s going to be transformational,” he told the Business Record, adding that architects are currently drafting a site plan that respects the anchor tenant’s rights while developing the rest of the 58-acre plot.
Public money is on the table to cover the early costs of demolition and infrastructure. Local officials are considering a package worth up to $110 million, utilizing tax increment financing and public works spending. KCCI reported that city planners view this investment as necessary to reverse decades of commercial decline in the area, which has seen a steady drop in foot traffic since the mall opened in 1975.
Martin envisions a space with major water features and public plazas, claiming early interest from tenants is strong. But no formal leases will be signed until the city gives the green light. The developer must present final architectural plans to the West Des Moines Plan and Zoning Commission after lease talks conclude.
The next move belongs to the city council. If they approve the incentives and the site plan passes regulatory review, construction could begin later this year. For now, the fate of one of central Iowa’s largest commercial properties rests on a handshake with a department store and a vote in city hall.