Downtown C.R. office tenants on the move

CEDAR RAPIDS - Tenants of a downtown Cedar Rapids office building are moving to new locations in preparation for the demolition of the structure to make way for the city's new $67 million Event Center project.

ING, a financial services firm located on the first floor of Professional Park, 119 Third St. NE, will be moving to the first floor of the Granby Building at 200 Third Ave. SE. The Dutch-based company will occupy about 4,000 square feet of space, according to Jon Dusek, president of Armstrong Development, which owns the Granby Building and Professional Park.

ING offers a comprehensive array of financial services to retail and institutional clients, which includes life insurance, retirement plans, mutual funds, managed accounts, alternative investments, direct banking, institutional investment management, annuities, employee benefits and financial planning.

ING, which received a 90-day notice to vacate in December, will be relocating by late March. Dusek said remodeling of the space formerly occupied by a regional securities brokerage, is progressing on schedule.

North 40, an advertising agency with regional, national and international clients, moved this week to 1501 Boyson Square Dr. in Hiawatha.  Dave Benson, North 40 part owner and treasurer, said rental rates and parking were issues that prompted the firm with eight employees to leave downtown Cedar Rapids.

“We listened to Jon Dusek talk about his ideas and we toured some of his facilities,” Benson said. “We decided to open it up and look at everything. We contacted our commercial Realtor, Doug Lemon, and he showed us a number of locations in downtown Cedar Rapids as well as other communities.

“Everytime we looked at a couple of spots downtown, it started out at $8.50 a square foot and it went up a little bit with carpet and paint. Parking would have cost about $600 a month and it wouldn't have been convenient or safe for our employees who work late.”

Benson said developer Joe Ahmann offered 4,600 square feet in a new 20,000-square-foot ”Tech Center” at $12.50 a square foot with 80 parking spaces available adjacent to the building. Ahmann reached an agreement with the City of Cedar Rapids, which recently purchased Professional Park, to use North 40's relocation allowance for rent abatement.

The dental office of Dr. Christopher Tyler, 126 Second St. NE, is moving to 1601 Boyson Square Dr. in Hiawatha. That move is expected to occur later this spring.

Tektivity Inc., a company that hosts and manages computer network applications and telecommunications services for many businesses in the region and state, is moving to 9440 Atlantic Dr. SW near The Eastern Iowa Airport.

Jon Cushing, Tektivity co-owner, said the company's 23 employees will move in phases this month, hoping to complete the transition by the last week in February.

“We have very much enjoyed being downtown, but with our requirements of shipping and receiving, the ability to bring trucks up to the door was an issue,” Cushing said. “Access to  Interstate 380 also was an issue.

“We are expanding more into the Corridor and the region, so moving out by the airport made a lot of sense.”

Chris Kelly, chief technology officer of Circle Computer Resources, said the company has relocated its sales office from 122 Second St. NE to the firm's headquarters at 2919 First Ave. SE.

Dusek said the U.S. Department of Labor occupies a small office in Professional Park and will be relocating. He said efforts were made to keep as many of the tenants downtown as possible.

“I tried to do something for all of them, but I just didn't have what they needed,” Dusek said. “I really wish we could have kept them all in downtown Cedar Rapids.”

The Cedar Rapids City Council in October agreed to purchase Professional Park and a parking ramp on A Avenue NE owned by Armstrong Race Realty, corporate parent of Armstrong Development. In addition to paying more than $5 million for the Armstrong property, the city will spend an estimated $360,000 to relocate tenants.

Dusek, whose firm owns the Armstrong Center, 222 Third Ave. SE as well as the Granby, Arco and Kubias office buildings, said he is seeing some encouraging signs that demand will increase for downtown office space as the economy continues to improve.