Historic Black's Building in Waterloo Iowa Set for Hotel Transformation: A $57 Million Win for Downtown Development

Waterloo’s iconic Black's Building, a downtown landmark that has stood as a monument to the city’s commercial heritage for over a century, is poised for an exciting new chapter as a Waterloo, Iowa hotel. In a unanimous vote that signals strong municipal support for downtown revitalization, the Waterloo City Council has approved a transformative development agreement with JSA Development to convert the historic structure into a mixed-use hotel and residential complex.

From Department Store to Beacon of Progress

The nine-story building at 501 Sycamore Street has been a cornerstone of downtown Waterloo since 1914, when it opened as the flagship James Black Company department store. Built by Irish immigrant James Black, who started with a modest dry goods store in 1894, the business grew to become one of Iowa’s most respected department stores, offering everything from clothing and jewelry to furniture and electronics under one magnificent roof Department Store Museum.

After the department store closed in the early 1980s following the rise of suburban shopping malls, the building transitioned to office use but has languished in recent years. Today, according to JSA Development president David Deeds, the building stands 95% vacant—a stark contrast to its former glory as the bustling heart of downtown commerce KWWL.

The $57 Million Vision: A Game-Changer Hotel for Downtown Waterloo, Iowa

The approved development agreement represents one of the most significant private investments in downtown Waterloo’s recent history. JSA Development’s ambitious plan will transform the 110-year-old structure into a vibrant mixed-use destination featuring:

• 130 hotel rooms operated by a national “upper mid-scale or better” brand (to be announced within 2-3 months)

• 20-25 market-rate apartments bringing residential life back to downtown

• 2-4 commercial spaces for restaurants, retail, or service businesses

• Preservation of historic elements including the grand lobby and iconic “Black’s” signage

The total investment of $57 million is backed by $14 million in city support through tax increment financing over ten years, demonstrating Waterloo’s commitment to catalyzing downtown development Hotel-Online.com.

Economic Impact: More Than Just Bricks and Mortar

The transformation of the Black's Building represents far more than an architectural renovation—it’s an economic catalyst that will generate significant benefits for Waterloo’s economy. The project is expected to increase the building’s taxable value from $3.5 million to at least $8 million, substantially boosting property tax revenues for the city, schools, and county.

“This is going to bring good, 24/7 activity to this part of downtown,” Deeds told the City Council. “We’re going to make this thing a place where people come to stay in this great hotel, in this grand building, and will come out of that building to spend money at those shops and restaurants all around that space” Cedar Valley Now.

The timing couldn’t be better. The hotel is scheduled to open in early 2028, coinciding with the opening of CourtWorks, a new $30 million youth sports complex expected to generate $10-15 million in annual economic impact by attracting hundreds of traveling athletes and families to the area. This synergistic effect will create a powerful draw for visitors who will need accommodations, dining, and entertainment options KCRG.

Preserving History While Embracing the Future

One of the most encouraging aspects of this project is JSA Development’s commitment to preserving the building’s historic character while adapting it for modern use. The company plans to maintain the building’s distinctive lobby with its grand mezzanine, preserve the iconic “Black’s” signage, and brand the area around the hotel as the “East Village”—a nod to the building’s heritage while creating a fresh identity.

This thoughtful approach to adaptive reuse demonstrates how historic preservation and economic development can work hand-in-hand. Rather than demolishing a piece of Waterloo’s architectural heritage, the project will breathe new life into a building that has been underutilized for decades.

The Ripple Effect: Downtown Revitalization in Motion

The Black's Building project arrives at a pivotal moment for downtown Waterloo. Projects like the Convention Center Renovation, Courtworks Construction, and other mixed use new development and historic redevelopment.

Together, these projects create a powerful momentum for downtown transformation. The new hotel will provide accommodations for visitors to the CourtWorks sports complex, shoppers to downtown, event goers at Irish Fest, and business travelers attending conferences or meetings in the growing TechWorks district.

A Smart Investment in Waterloo’s Future

From a financial perspective, the development agreement represents a sound investment for Waterloo taxpayers. The $14 million in TIF support will be spread over ten years and is contingent on the project meeting its development milestones. In return, the city gains a revitalized landmark, increased property tax revenue, new jobs, and enhanced downtown vibrancy.

The project’s scale and scope position it as a catalyst for additional private investment in downtown Waterloo. Successful urban revitalization often follows a pattern where one major project attracts others, creating a positive cycle of development, investment, and economic growth.

Construction Timeline and Next Steps

With the development agreement approved, JSA Development is moving forward with finalizing the hotel brand partnership and completing design work. Construction is expected to begin in August 2025, with the hotel opening its doors in early 2028. This timeline allows for careful attention to historic preservation requirements while meeting modern building and accessibility standards.

The announcement of the hotel brand in the coming months will provide additional clarity about the market positioning and target demographics for the property. Given the emphasis on “upper mid-scale or better,” the hotel will likely attract business travelers, weekend visitors, and families attending events at CourtWorks or other area attractions.

A Win for Waterloo’s Economic Development

The unanimous City Council approval reflects broad community support for this transformative project. As Council members noted during the approval process, the Blacks Building renovation addresses multiple city priorities simultaneously: historic preservation, downtown revitalization, increased tax base, and job creation.

For a city that has worked diligently to diversify its economy beyond traditional manufacturing, this project represents exactly the kind of quality-of-life investment that attracts and retains talent, supports local businesses, and positions Waterloo as a regional destination rather than just a pass-through community.

Looking Ahead: A Brighter Downtown Future

The transformation of the Black's Building from vacant landmark to thriving hotel and residential complex embodies the potential for smart urban redevelopment to drive economic growth. By bringing hundreds of daily visitors to downtown Waterloo, the project will infuse the area with disposable income that benefits restaurants, shops, service providers, and other businesses.

As construction begins next year and the project moves toward completion in 2028, Waterloo residents and business owners can look forward to a revitalized downtown core that honors the city’s rich history while embracing its promising future. The return of vibrant activity to The East Village of Waterloo will serve as a powerful reminder that strategic investment in historic preservation and adaptive reuse can yield tremendous dividends for communities willing to embrace change while respecting their heritage.

For Waterloo, the Black's Building project isn’t just about renovating an old department store—it’s about building a foundation for sustained economic growth that will benefit the community for generations to come. This is exactly the kind of forward-thinking development that positions cities for success in an increasingly competitive economic landscape.

The Blacks Building redevelopment represents a $57 million vote of confidence in Waterloo’s downtown future, bringing new life to a historic landmark while creating jobs, generating tax revenue, and attracting visitors to support local businesses. It’s a win-win for preservationists, economic developers, and anyone who believes in Waterloo’s potential as a regional destination.