Krause Group has expanded its real estate holdings in downtown Des Moines’ Western Gateway with the purchase of a century-old three-story brick building immediately south of the popular John and Mary Pappajohn Sculpture Park, Polk County real estate transactions show.
The property at 1440 Locust St. (pictured) includes 3,600 square feet of commercial space and 37 apartments. Hubbell Realty Co. bought the building in 2005, redeveloping it in 2013 and 2014. Krause Group, through its 1440 Locust Street LLC, bought the building on Jan. 31. The company paid $6.38 million for the building that was constructed in 1916, records show.
“It’s a great building and the sort of development, redevelopment we want to see in the Western Gateway,” wrote Ariel Rubin, spokesperson for Krause Group, in an email to the Business Record.
In fall 2018, Krause Group, which owns and operates Kum & Go convenience stores and other Krause-affiliated businesses, moved into the Krause Gateway Center at 1459 Grand Ave. As planning and construction of the company headquarters was underway, Krause Group began buying adjacent properties, amassing about 5 acres, Polk County real estate transactions show.
Until recently, company officials had been silent on plans for the properties that had been bought west and northwest of Krause Gateway Center.
“This is an area that can really use redevelopment,” Gerard Haberman, president of Krause Real Estate Group, said about property located roughly between High Street and Grand Avenue on the north and south and 15th and 17th streets on the east and west. “There was not a master plan in place when all of those individual buildings were [constructed] over the decades.