Downtown Des Moines Marriott sold for $34 million

Constructed in 1981, the hotel is the third tallest building in Des Moines.

The Des Moines Marriott Downtown is set to be sold for nearly $34 million to Chicago-based Singerman Real Estate.

The 33-story hotel is Des Moines' third-tallest building and features more than 400 rooms. City Center Corp., the hotel's current owner, said the sale is scheduled to close Friday.

Singerman President Seth Singerman said the company intends to continue operating the property as a Marriott and will consider some upgrades and renovations.

“We’re excited to buy the Marriott. The property has a great history of being the primary business and social hotel for downtown," he said. "We’re making this commitment because we believe in the growth and vibrancy of downtown Des Moines.

Constructed in 1981 at 700 Grand Ave., the Marriott as pivotal in "the rebirth of downtown," said Steve Zumbach, an influential local attorney who arrived in Des Moines just as plans for the hotel were taking shape.

It was developed at the behest of the late John Ruan, a local shipping mogul who thought Des Moines needed a marquee downtown hotel to grow as a real city.

At the time, downtown was full of empty storefronts and gritty auto shops. Businesses and residents were leaving for the suburbs. The idea of building a high-rise hotel amid the blight was not an easy sell to investors, but Ruan put up his own money and convinced other Des Moines business leaders to do the same.

"It happened because people like John Ruan and others had the tenacity to stick with it," Zumbach said.

"These folks had other places to put their money, like their own businesses ... and yet they put their money in because they knew it wouldn't get done otherwise."

The Ruan family has maintained a majority ownership of the hotel since it was constructed, according to a news release from Ruan Transportation Management Systems.

“We are proud of our long-term relationship with Marriott and the benefits this hotel brought to our ever-evolving city,” said John Ruan III, chairman of the Ruan Cos. and a City Center Corp. board member.

Earlier this year, the City Center board considered expanding the hotel, but decided it would be a better business decision to sell the property, according to the news release.

The final sale price is $33.6 million, according to Ruan Transportation Management Systems.

The assessed value of the hotel is $21.5 million, not including several separately assessed condo units within the building.

It would be the most expensive commercial property sold in Des Moines since 2005, when HP Enterprise Services' building on Army Post Road sold for $33.9 million, according to assessment records.

In addition to serving as a conference center and downtown’s largest hotel, the Marriott has also become a political hot spot, hosting swarms of politicians and journalists every four years during the Iowa caucuses.

Reported by:  DesMoinesRegister.com