Construction has temporarily paused at 515 Walnut, the $168 million high-rise poised to become Iowa’s tallest residential building, as developers work to finalize the loan required to keep the project moving.
The normally bustling jobsite in downtown Des Moines has gone quiet, with the massive tower crane lowered — a visible sign of the financing setback that stalled progress earlier this week.
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Lead developer Joe Teeling confirmed the holdup, noting that the construction loan intended to pay Beal Derkenne Construction has taken longer than expected to secure.
“It just took a lot longer because it’s really a complicated project,” Teeling said. “We just held off because the construction loan is going to pay the builders. It’s just been delayed, and they have all been waiting. After a certain period of time, they have to quit working. So they’re just taking a pause until we get this loan closed.”
Originally expected to close in early October, Teeling now anticipates the deal will be finalized before month’s end — potentially allowing construction to resume as early as Monday.
The 33-story project — which has already reached 13 floors — broke ground earlier this year. It will add 390 new apartments in the heart of the city, with:
• Studio, one- and two-bedroom layouts
• 10% affordable units (65% AMI)
• Rooftop open-air terrace
• Fitness center + skywalk access on level two
• Ground-floor retail and resident services, including a dog wash and bike storage
Once complete, the 347-foot tower will rank as Des Moines’ fourth-tallest building, and the tallest new downtown development since 2007.
Despite the pause, Teeling remains confident:
“Our builders have been phenomenal. I don’t have a lot of concerns about completion right now. They are doing extremely well.”
He emphasized that construction had been moving swiftly, with crews “pouring a floor a week” prior to the financing delay.
Des Moines officials believe the temporary halt will not affect the long-term outcome.
“The developer and contractor anticipate only a brief pause in construction, and the substantial private investment already committed provides significant financial motivation to complete the project,”
said Cody Christensen, the city’s developer services director.
The city’s development agreement also ensures no public funding is issued until the project reaches completion — another safeguard keeping pressure on progress.
515 Walnut has faced numerous starts and stops since it was first envisioned in 2015 under Blackbird Investments. Litigation, rising construction costs, and fluctuating interest rates contributed to years of delay before the St. Joseph Group revived it in 2022.
Teeling said he’s been “on the phone all day long with all of the parties involved” as the last financing hurdles are addressed.
If lending is finalized as expected, the tower remains on track for completion in spring 2027, helping bring hundreds of new residents downtown and strengthening Des Moines’ urban housing supply.
“We’re feeling really good,” Teeling said. “It’s been great to get the financing wrestled to the ground… I feel strong about that.”
When finished, 515 Walnut will join a select list of the 100 tallest U.S. residential buildings recently completed or still under construction.
Originally reported by Kate Kealey, Des Moines Register in Des Moines.
