UI seeks approval to purchase remaining space in Old Capitol Town Center

University currently owns about 55% of the mall space in downtown Iowa City

Tuesday, October 29, 2024

The University of Iowa is seeking permission from the Iowa Board of Regents to purchase the remainder of Old Capitol Town Center in downtown Iowa City. The university currently owns about 55% of the mall, and the proposal before the board is to purchase the remaining 45%.

The board will consider the request at its November meeting.

A person walks through Old Capitol Town Center.

The university has provided notice to the mall's ownership group of its intent to purchase the rest of the space, pending board approval, for $20.6 million.

As the university has reallocated campus space, it has used the mall space it purchased as a student and staff transaction hub. The university has named the space it owns University Capitol Centre (UCC), which includes staff offices such as the Office of the Vice President for Research and Information Technology Services, and student services such as Office of Student Financial Aid, International Programs, and Student Disability Services.

"As we continue to return spaces in the heart of our campus to classroom and learning use and as we continue to adjust space needs in the wake of the COVID-19 pandemic as some employees continue to utilize remote and hybrid work options, full ownership of UCC makes strategic sense for the university," says Rod Lehnertz, senior vice president for finance and operations. "The building spans almost two city blocks and is centrally located. We will continue to find ways to strengthen its success as a hub for student and employee services."

Final closing on the deal would occur on Oct. 1, 2027, at which time all existing commercial leases for mall tenants will be transferred to the UI.

"The building has a strong retail presence of shops and restaurants that serve our campus," Lehnertz says. "Our long-term plan is to retain retail space in the building."

The mall, which opened in 1981, was once a thriving retail hub, with anchor stores including JCPenney and Younkers.