Historic Decorah Buildings Undergo $4.6 Million Redevelopment, Set to Reopen in 2027

DECORAH, Iowa—Construction is underway on a $4.6 million redevelopment project that will transform a group of historic downtown Decorah buildings into new housing and commercial space while preserving a prominent piece of the community's architectural history. The project centers on the former Anundsen Publishing Company buildings at 105 and 107 E. Water St. and 108 Washington St. Originally constructed in the late 1800s and expanded throughout the 20th century, the buildings have long occupied a central place in downtown Decorah. When completed, the redevelopment will create nine market-rate apartments on the upper floors and approximately 7,800 square feet of commercial space on the ground level. Developers anticipate reopening the buildings in February 2027. The effort is being led by Rebound Real Estate in partnership with the Decorah Real Estate Fund, a group that includes more than 20 local investors. More than 35 partners are involved in the project, including lenders, contractors, community organizations and preservation programs. "This project is an opportunity to preserve that history while creating new housing, commercial activity, and long-term investment in the community," Brett Reese, managing partner of Rebound Real Estate, said in a statement. The redevelopment will revitalize more than 15,000 square feet of downtown space. Commercial areas are being marketed to prospective retail, restaurant and office tenants, with up to four commercial suites planned, including two storefront locations along Water Street. Construction is being overseen by Decorah-based David Finholt Construction Inc., with work being performed by a team of regional subcontractors and tradespeople. Demolition activities are nearing completion, according to project officials. Over the coming months, crews are expected to focus on exterior improvements, including roofing work, masonry restoration and window installation. Building system upgrades involving plumbing, heating and cooling, electrical infrastructure and fire sprinkler systems will follow. Interior work, including drywall installation, painting, cabinetry, flooring and finish work, is expected to continue through fall 2026 before final inspections and project closeout in early 2027. The project is receiving financial support from multiple local and regional organizations, including Fidelity Bank & Trust, Decorah Bank & Trust, the Upper Explorerland Regional Planning Commission, the Decorah Area Chamber of Commerce and the City of Decorah. Developers said the redevelopment would not be financially feasible without more than $2 million in state and federal tax credits. Those incentives include Federal Historic Tax Credits and three Iowa programs: the State Historic Tax Credit, Workforce Housing Tax Credit and Grayfield Tax Credit. Because the property is listed on the National Register of Historic Places and is utilizing historic preservation tax credits, renovation work must comply with strict preservation standards. One notable feature of the building reflects its publishing history. In 1955, Anundsen Publishing Company added a second floor above Happy Joe's at 105 E. Water St. The exterior panels were intentionally designed to be removable so large printing presses could be lifted directly into the building. Preservation requirements mean those panels must remain intact because they were constructed during the property's recognized historic period of significance. In addition to interior renovations, the project includes new windows, roof improvements, brick and facade restoration, and upgrades to building systems intended to extend the life of the structures for decades to come. The completed development will offer two studio apartments, five one-bedroom apartments and two two-bedroom apartments larger than 1,000 square feet. Current rental projections begin at $1,050 per month for studio units, $1,200 for one-bedroom units and $1,625 for two-bedroom units. Although the apartments will not be income-restricted, project leaders say the additional housing units will help address demand in Decorah's residential market. Officials said construction is expected to have minimal impact on downtown traffic and parking, with only occasional temporary disruptions related to deliveries and contractor activity because most work is occurring within the existing buildings. Developers are currently accepting inquiries from prospective apartment residents and commercial tenants interested in leasing space when the project opens in 2027.