Work is progressing on the transformation of the former Story County Medical Center into a 60-unit apartment complex known as Nevada Flats.
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The redevelopment project at 630 6th Street in Nevada is being led by The Capstone Group, Inc., following the medical center’s closure in 2024. After the facility became vacant, hospital officials partnered with the Nevada Economic Development Commission to identify a viable reuse plan.
Construction began in mid-2025 with interior removal and partial demolition work. According to a city press release, the project is now “nearing completion.” Nevada City Administrator Jordan Cook said developers are aiming to finish construction by June 1.
To clear the way for redevelopment, the Nevada City Council voted 4-1 in May 2025 to rezone the property. The decision came despite concerns raised by residents about potential parking shortages and increased traffic in the surrounding neighborhood.
On March 2, the Nevada Planning and Zoning Commission approved the final site plan for the property, which includes expanded parking accommodations for tenants.
Under the approved plan, an existing parking lot at F Avenue and 6th Street, along with two lots on 5th Street, will be restriped to increase tenant parking capacity. In addition, a new 10-space parking lot will be constructed at the intersection of 5th Street and G Avenue.
City officials say the parking revisions are intended to address earlier community concerns while ensuring adequate space for future residents.
The Nevada Flats development will feature a range of housing options, including 42 single-bedroom apartments, seven two-bedroom units, nine studio apartments and two ADA-compliant units designed for accessibility.
Each apartment will have an individual power meter as well as independent heating and cooling controls, giving tenants greater flexibility and energy management options.
The redevelopment also incorporates shared outdoor and storage amenities. Two courtyard spaces are planned—one situated between the west wing and the main hospital structure, and another fenced area designated as a dog park for tenants. The building’s basement will house 60 individual storage units, providing additional space for residents.
The 74-year-old hospital campus was previously divided into three facilities: a medical clinic, hospital and senior care center. All are now vacant. Story Medical Senior Care was the final occupant, remaining in one of the buildings until 2024 before relocating to 710 S. 19th Street on the campus of the current Story County Medical Center.
City leaders have been exploring reuse options for the property since it was vacated. Demolition was considered in 2022, but discussions stalled after officials determined the estimated $2.6 million demolition cost was prohibitive.
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By converting the existing structure instead of razing it, developers are preserving a long-standing community building while introducing new residential density near the city center.
The Nevada Flats project comes as communities across central Iowa continue to face housing supply pressures. Adaptive reuse of institutional buildings—such as hospitals, schools and offices—has become an increasingly common strategy to expand housing stock while minimizing demolition waste and infrastructure costs.
Once completed, the 60-unit development is expected to contribute to local workforce housing availability and support downtown activity by adding new residents within walking distance of businesses and services.
With construction nearing the finish line and a June 1 target date in sight, Nevada Flats is poised to mark a significant chapter in the city’s redevelopment efforts—transforming a once-vacant hospital into modern housing designed to serve the community for decades to come.
Originally reported by Celia Brocker Ames Tribune in Ames Tribune.
