$7M project in works for former Maytag buildings

A project is underway to transform two former Maytag buildings into a $7 million apartment complex that would house 42 factory lofts near downtown Newton.

Hubbell Development of West Des Moines aims to renovate the property, located at 403 W. Fourth St. N., commonly known as Maytag buildings 1 and 2.

Bryan Friedman, director of finance and development for the city, announced Monday that Hubbell Development agreed to purchase the properties from Newton Enterprises.

The multi-million dollar renovations would ensure the historical qualities of the building be kept intact, while providing affordable housing options primarily targeted to those commuting to Newton, Friedman said.

In a recent trend analysis, the city found that about 4,000 people travel to Newton every day. With the new one and two bedroom apartments, the city hopes to attract some of those individuals to live where they work, he said. Along with the commuters, part-time students and young professionals are potential tenants.

The buildings will house a manager’s office along with a community room, computer center, fitness center and storage lockers. Plans are also in the works for an outdoor common area in the courtyard by the building. Each unit would have its own washer and dryer, dishwasher and parking available. There will be 12 accessible units, some even located on the second floor because of elevator access.

Hubbell Development started looking in the Newton area more than two years ago after starting a project in Grinnell. The Maytag buildings fit in with the long list of historical restoration work the company had done.

“When we came from West Des Moines and put our pin in Grinnell, it included interest in communities all the way along the corridor,” said Kris Saddoris, vice president of development for Hubbell.

She said the buildings are in great condition with “good bones,” wide open spaces, exposed brick and great ceilings. Hubbell has already put in $365,000 cash into the project and is looking to get historic credits from both the state and federal level totaling $2.51 million.

Hubbell will also be utilizing Low Income Housing Tax Credits through the Iowa Finance Authority, a highly competitive process which may necessitate local government contribution.

“The reality of is the differentiator for a lot of these projects will be that contribution,” Saddoris said.

The exact contribution the city would make was not discussed, but examples such as tax abatement were given.

“I’m confident in the community and the growth in the community,” Saddoris said.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com.