Des Moines Approves New Housing and Retail Projects
The city has cleared two major developments adding 38 residential units to revitalize local neighborhoods.
Updated on Oct. 20, 2026 in Commercial
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The Des Moines City Council recently approved two major residential redevelopment projects aimed at revitalizing local neighborhoods. These agreements pave the way for new housing in the Highland Park area and at 2814 Seventh Street, with construction expected to launch as early as late 2026.
Why it matters
These developments represent a significant capital investment in Des Moines housing stock, aiming to transform underutilized properties into functional residential and retail spaces. The city is using tax incentives to spur this growth, which is expected to increase local property values.
The University of Commerce redevelopment is estimated at $5.8 million for 14 new apartment units, while the Seventh Street project involves a $7.2 million investment for 24 units. Both projects utilize city-backed Tax Increment Finance (TIF) incentives to support construction.
The players
Des Moines City Council
The local legislative body responsible for approving urban renewal agreements and managing city fiscal incentives.
615 Euclid LLC
The private development entity managing the renovation and historic preservation of the University of Commerce building.
Neighborhood Development Corp.
A community-focused organization driving residential expansion projects including the new site at 2814 Seventh Street.
The details
The developer 615 Euclid LLC will manage the 102-year-old University of Commerce building project, which adds 12 one-bedroom and 2 two-bedroom units alongside 2,000 square feet of retail. Separately, the Neighborhood Development Corp. is overseeing the Seventh Street project, which consists of two 12-unit residential buildings. These projects leverage city TIF agreements to offset costs and boost property assessments upon completion.
Timeline
1924: The original University of Commerce building was constructed.
2023: The Highland Apartment building was demolished.
October 19, 2026: Des Moines City Council approved the new development agreements.
End of 2026: Construction on the University of Commerce site may begin.
October 2027: Potential move-in date for residential tenants at the Commerce building.
The Home Front
The use of Tax Increment Finance (TIF) district funding is a common tool used by municipalities to incentivize the conversion of aging commercial buildings into modern housing. This strategy typically aims to boost stagnant property values while expanding available residential inventory in growing urban cores.
Residents in Highland Park and near Seventh Street should expect increased construction activity in their neighborhoods beginning in late 2026. Homeowners nearby should keep track of these development timelines, as the projected increase in property values may impact local tax assessments.
The takeaway
These city-approved projects signal a major shift for local housing availability and retail options in historic districts. Watch for construction updates if you live near Highland Park or the Seventh Street corridor as these large-scale renovations move toward a 2027 completion date.
Further reading
For more information on ongoing urban revitalization projects, visit Des Moines Commercial.
Live Poll
Do you support the use of city tax incentives to fund private real estate development projects?
