New Developer Under Contract for Valley West Mall Redevelopment
A new prospective buyer has entered into a contract to purchase the Valley West Mall in West Des Moines, with the parties aiming to finalize the transaction within 90 days. Todd Millang, senior vice president at the brokerage firm CBRE, confirmed the agreement, noting that the buyer is currently undergoing an expedited due diligence process. The identity of the developer remains under a nondisclosure agreement.
Why the Valley West Mall Site Is Available
The 60-acre property has been on the market since February 2025 following a period of foreclosure and receivership. The mall, which opened in 1975, faced significant financial strain after owner Watson Centers Inc. failed to meet loan obligations to U.S. Bank totaling nearly $3.5 million. The site’s assessed value has plummeted by 80% since its peak in 2005, according to public property records, currently standing at $19.8 million. The shift in retail traffic toward competing hubs like Jordan Creek Town Center contributed to the mall’s decline, leaving only about 18 of its 138 tenant spaces occupied.
What Happened to Previous Redevelopment Efforts
The current contract follows a failed attempt by Ankeny-based ATI Group to acquire the site. ATI Group entered into a contract in August 2025 but withdrew from negotiations in April 2026 after failing to secure an agreement to buy out the lease of the mall’s remaining anchor tenant, JCPenney. While ATI Group reportedly submitted a subsequent bid, they were not selected as the successful party. JCPenney remains in operation at the site, with a lease agreement extending through 2032.
How the City of West Des Moines Is Facilitating Progress
The West Des Moines City Council has actively prepared the site for a major transformation to prevent further deterioration. To support potential redevelopment, the city has designated the property as an Urban Renewal Area and rezoned the land for mixed-use development. According to municipal planning documents, the city has authorized up to $110 million in financial incentives to be distributed over a 10-year period. Mayor Russ Trimble has described the revitalization of the mall as a critical priority for the city’s long-term economic strategy.
Key Details of the Current Transaction
- Status: Under contract with a new developer.
- Timeline: Closing is targeted within approximately 90 days.
- Property Scope: 865,000 square feet across 60 acres.
- Market Context: The site has been in receivership since the owner defaulted on a $3.5 million loan.
Millang indicated that the complexity of the site, which remains operational while transitioning, requires a multi-year development vision. While the previous attempt to purchase the mall did not reach a closing, CBRE representatives stated that they have provided substantial due diligence materials to the current buyer to keep the project moving forward. The long-term plan for the property is expected to span a decade of construction and phased development.