Foss & Co., a tax credit syndicator, has secured financing for the conversion of the Financial Center, a 25-story office tower in downtown Des Moines, into 209 market-rate apartments and 152,000 square feet of commercial space. The project, developed by Lawmark Capital, will generate approximately $14.6 million in 2026 federal Historic Tax Credits. Completed in 1974 as Iowa's tallest building, the tower will see floors 4 through 18 converted to residential use, with amenities including a golf simulator, fitness center, and rooftop pool connected to the city's skywalk system.
The deal tests whether historic tax credits can bridge the gap between office distress and multifamily demand in secondary markets. In gateway cities, office-to-residential conversions often require deep subsidies or rent premiums to pencil. In Des Moines, the $14.6 million in tax credits provides a material capital subsidy, but the economics remain thin. The conversion removes 152,000 square feet of office space from a market that may already be tightening, while adding 209 apartments to a downtown seeking residential density.
One interpretation: historic tax credits are enabling conversions that conventional financing alone would not support, but the model depends on subsidy timing and final certification, which is not guaranteed. A skeptic would note that this is a single transaction, not a market signal. Without primary documents or attributable quotes, the capital stack beyond tax credits remains opaque. The deal's replicability in other secondary markets is an open question.
For market participants, the key test is whether Foss & Co. can syndicate these credits efficiently and whether Lawmark Capital can execute the conversion within budget. If successful, the Financial Center could become a template for older office assets in the Midwest. If not, it will remain a one-off subsidy capture.