Foss Secures Tax Credits for 25-Story Office Tower Conversion in Des Moines

Why this matters

This transaction underscores the growing institutional appetite for adaptive reuse strategies in the office sector, particularly in secondary markets like Des Moines. Securing tax credits to facilitate the conversion of a 25-story office tower signals a pragmatic response to persistent office demand challenges and evolving tenant preferences. For capital allocators, this deal highlights how tax-advantaged financing remains a critical lever to de-risk repositioning projects amid uncertain leasing fundamentals. It also reflects a broader recalibration of capital flows toward value-add and redevelopment plays rather than traditional office acquisitions, which face headwinds from remote work trends and rising vacancy. From a lending perspective, the involvement of a tax credit syndicator suggests that structured financing solutions are increasingly essential to bridge gaps in conventional debt markets, which remain cautious on large-scale office assets without clear income visibility. More broadly, this move illustrates how institutional investors and developers are recalibrating market positioning by leveraging public incentives to unlock latent value in underperforming office stock, a dynamic likely to persist as the sector seeks new equilibrium.

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On the RET wire

• Disclosed office deal value tracked in July 2026: $22.3B across 73 reported transactions. All Office coverage →

Computed from Real Estate Trail’s own tracked coverage

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