University of Iowa Plans $20.6 Million Acquisition of Old Capitol Town Center
The University of Iowa (UI) is poised to make a significant investment in downtown Iowa City by proposing the purchase of the remaining 45 percent of the Old Capitol Town Center for $20.6 million. The center, which opened in 1981 and was formerly anchored by Younkers and JCPenney, currently houses a mix of university offices and retail spaces.
UI already holds a 55 percent stake in the 375,000-square-foot facility, primarily utilizing the second floor for various administrative and student services, including the Office of Student Financial Aid and International Programs. The purchase represents a strategic move in alignment with the university’s 10-year master facilities plan and aims to enhance the learning environment amid shifting space needs due to COVID-19 pandemic adjustments.
Under the proposed agreement, UI would maintain the retail presence on the first floor, which includes popular restaurants and a CVS, to help offset operational costs. The university intends to foster a collaborative campus atmosphere while ensuring that retail options remain available for students and staff.
Approval for this acquisition will be sought from the Board of Regents in an upcoming meeting. The agreement stipulates that upon regent approval, UI will pay 10 percent upfront with the remainder due by October 1, 2027. The university will also be responsible for approving any new commercial leases or changes to existing contracts beyond that date.
This venture reflects the university’s ongoing commitment to enhance its facilities while adapting to evolving campus needs. With the full ownership of the Old Capitol Town Center, officials anticipate further development of spaces that directly benefit the university community.
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