Buyer wants to turn around Town Centre

The impending purchase of the flood-damaged Town Centre building by Steve Emerson of Cedar Rapids has fueled hope for a turnaround in the building's sagging fortunes.

The block-long structure at 221 and 201 Third Ave. SE was one of downtown's top office buildings before the Cedar River damaged the first floor and basement last year. The center has not been rehabilitated because the owner is part of bankrupt financial giant Lehman Brothers.

Since the flood, the building has lost at least two tenants - ITC Midwest and the University of Iowa's Henry B. Tippie College of Business - and is only 55 percent leased. It was among the last major downtown buildings without a new heating system to replace the Alliant Energy steam heat that will be shut down at the end of the month.

Emerson, president of Aspect Architecture, is expected to finalize his purchase Monday, according to Tiffany Earl of Skogman Realty Commercial, who handled the deal with the building's lien holders.

Emerson said he plans a major upgrade for the Second Street lobby used by Shive-Hattery Inc., and will reconfigure some of the unoccupied space to expand the leasable area. He is also planning to improve the parking garage and to remove a damaged escalator system.

Emerson owns about 10 other downtown buildings, but he said they are mostly full.

“I've had such good results with leasing in the past four to six months that I'm essentially out of space,” he said.

Some of Emerson's tenants include ITC Midwest, which moved from Town Centre into his Palmer Building, and the Tippie College of Business, which moved into his Blend restaurant building.

The president of Bankers Trust, which has its main Cedar Rapids office in Town Centre, was upbeat about Emerson's plans. Tim Kintner said Bankers Trust is planning to expand in Town Centre and lease more space there.

“It's a big advantage,” Kintner said. “Now we have a landlord - and a local one at that - who definitely plans to make improvements in the building. It's nice to have a local landlord you can actually visit with.”

Earl said talks are under way with three major users that could lease all of the remaining available space in the building.

Emerson has demonstrated his ability to quickly restore his downtown properties that were flooded, Earl said.

“His goal is to get it full and bring more bodies downtown,” Earl said.

The impending purchase of the flood-damaged Town Centre building by Steve Emerson of Cedar Rapids has fueled hope for a turnaround in the building's sagging fortunes.

The block-long structure at 221 and 201 Third Ave. SE was one of downtown's top office buildings before the Cedar River damaged the first floor and basement last year. The center has not been rehabilitated because the owner is part of bankrupt financial giant Lehman Brothers.

Since the flood, the building has lost at least two tenants - ITC Midwest and the University of Iowa's Henry B. Tippie College of Business - and is only 55 percent leased. It was among the last major downtown buildings without a new heating system to replace the Alliant Energy steam heat that will be shut down at the end of the month.

Emerson, president of Aspect Architecture, is expected to finalize his purchase Monday, according to Tiffany Earl of Skogman Realty Commercial, who handled the deal with the building's lien holders.

Emerson said he plans a major upgrade for the Second Street lobby used by Shive-Hattery Inc., and will reconfigure some of the unoccupied space to expand the leasable area. He is also planning to improve the parking garage and to remove a damaged escalator system.

Emerson owns about 10 other downtown buildings, but he said they are mostly full.

“I've had such good results with leasing in the past four to six months that I'm essentially out of space,” he said.

Some of Emerson's tenants include ITC Midwest, which moved from Town Centre into his Palmer Building, and the Tippie College of Business, which moved into his Blend restaurant building.

The president of Bankers Trust, which has its main Cedar Rapids office in Town Centre, was upbeat about Emerson's plans. Tim Kintner said Bankers Trust is planning to expand in Town Centre and lease more space there.

“It's a big advantage,” Kintner said. “Now we have a landlord - and a local one at that - who definitely plans to make improvements in the building. It's nice to have a local landlord you can actually visit with.”

Earl said talks are under way with three major users that could lease all of the remaining available space in the building.

Emerson has demonstrated his ability to quickly restore his downtown properties that were flooded, Earl said.

“His goal is to get it full and bring more bodies downtown,” Earl said.