Former downtown Cedar Rapids Wells Fargo building to undergo $11M renovation

CEDAR RAPIDS — A multimillion-dollar redevelopment will give a “recognizable” building in downtown Cedar Rapids a fresh look.

Midwest Equity, a private equity real estate investment firm headquartered in Iowa, announced Wednesday it plans to relocate its operations from the Skogman Companies building at 417 First Ave. SE, to the former Wells Fargo Bank location at 150 First Ave. NE.

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During a presentation to the Cedar Rapids City Council on Tuesday afternoon, Scott Mather, the city’s economic development project coordinator, said the 42,000-square-foot, four-story building has been “completely vacant” since March 2024.

Wells Fargo announced in March it planned to close banking operations at the downtown branch and transfer employees to other branches.

Midwest Equity said in a news release Wednesday that it plans to “undertake a total renovation of this iconic building” to make it LEED certified. The work will remove the building’s rust-colored exterior and reshape it. The work is expected to cost $11 million.

The Tiffany Earl Williams Team of Skogman Commercial also will move to the new location, expanding its commercial brokerage practice with Skogman Commercial.

Midwest Equity’s CSO/COO, Phil Williams, said the firm hopes the new location will contribute to the strength of the central business district.

“Companies like ours with employees who work from the office are critical to the success of many of the amenity businesses who contribute to a higher quality of life in Cedar Rapids,” Williams said in the news release.

Work on the renovation is expected to begin in February, with the first floor exterior and interior completed and open by next fall. The upper three floors — including a rooftop patio for use by building tenants — should be done by 2026, said Lydia Brown, vice president of business development for Midwest Equity.

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Midwest Equity plans to occupy the main floor in the old bank. The upper three floors will be leased to other businesses, Brown said.

The building was built in 1977 and operated as a Brenton Bank until Wells Fargo bought it.

Mather told the council the renovation work will generate at least "15 jobs with 12 retained." The council approved city financial incentives for the project using the "Green Building Economic Development Program."

Under the agreement, the city would reimburse the increased taxes generated by the project to cover the increased cost to achieve LEED certification with an up to 10-year, 100 percent reimbursement.

Based on the investment and estimated post-development value, the project is expected to generate $900,000 in increased costs, which would be eligible for reimbursement to cover the incremental LEED costs, Mather told council members.

The council unanimously approved a resolution of support for the project. The development agreement is scheduled to go before the council in January.

Council member Ashley Vanorny praised the project for repurposing an existing building.

“This is a very recognizable piece of property in Cedar Rapids, but this is exactly the kind of project that get me excited because it’s repurposing something that wasn’t being fully utilized and it’s adding street value so that it’s visibly pleasing but also just adds that utility,” Vanorny said at Tuesday’s council meeting. “We talk ad nauseam about having that 360 design, but this is what I’m talking about. It does take some investment that you’re taking an existing building and refurbishing it and bringing it up to the highest standards and then also giving back to the downtown in the way that brings people into it and helps to activate it.”

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