Vacant office tower at Merle Hay Mall pitched for senior housing
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Merle Hay Tower. Photo: Google Maps
Merle Hay Mall's vacant office tower could become senior housing while its former theater could be demolished to make way for an outdoor plaza, redevelopment plans shared with Axios show.
Why it matters: The proposal would convert aging mall space into affordable senior housing and advance Merle Hay's long-running shift toward a mixed-use destination.
Driving the news: Gratus Development is one of three finalists in a state competition for innovative affordable housing projects, with teams pitching their proposals Thursday.
- The winner could receive up to $14 million in federal housing tax credits over 10 years.
State of play: The plan would convert the building, 3850 Merle Hay Road, into 59 apartments for lower-income people who are 55 and older.
- Plans shared with Axios by Gratus development director Danielle Welsch Massey include a fitness and community space.
The intrigue: The former theater would become a plaza with greenspace and gathering areas — a nod to Merle Hay's 1959 debut as the open-air Merle Hay Plaza.
- Residents would have a dedicated indoor entrance to the mall, putting groceries, dining, recreation, shopping and year-round walking just down the hall.
Context: The housing proposal comes as Merle Hay works to advance its long-delayed arena project after the Des Moines Buccaneers abandoned the original plan in 2024.
The fine print: Winning the pitch isn't the final step toward receiving the tax credits.
- If Merle Hay wins, Gratus says the project would enter IFA's full application and underwriting process, with a tax-credit award anticipated in June 2027.
Zoom in: The Merle Hay project is competing with one that would convert a millwork building in Dubuque into as many as 120 apartments and another that would help the nonprofit Community Housing Initiatives of West Des Moines test a new model for more climate-resilient affordable housing.
What's next: If the tower's financing is successful, construction could begin in early 2028, opening in spring 2029.