Mercantile Building hotel?

[metro]

Bricktown’s Mercantile building may bring additional hotel to area
OKC Business
By Pamela Grady - 7/22/2008

The Mercantile building, located at 100 and 108 E Main in Bricktown, has sold three times during the past 10 years and now the building is again on the listing block.

Gary Berlin with West Indies Trading Co. LLC purchased the properties in May 2007 for $4.2 million. In July 2007, 100 E Main LLC purchased the properties for $2.7 million. Before that, Mercantile Partners LLC purchased the properties in April 1999 for $1.55 million.

The property consists of a five-story industrial loft building totaling 55,096 square feet with tenants including CityWalk and Third Degree Advertising as well as other smaller tenants and a one-story 10,350 square-foot storage warehouse facility which now houses Uncommon Grounds. Both buildings were built in 1919.

Berlin says he has had difficulty finding tenants for the property’s upper floors which was causing a negative cash flow. Berlin says several people in the hospitality industry have recently shown interest in the building although he stressed “ no contracts have been signed.”

“We’ve had several people interested in the building,” Berlin said. “As far as having a solid offer, we don’t have one. We’ve priced and showed it and the two people who have seen it are big in the hotel business in Oklahoma City. They were really concerned about how many rooms they could get on a floor and if Bricktown Urban Design would be willing to let them put windows on the west street side of the building which has no windows and things like that. Right now we’re just talking, but it’s been a couple of weeks.”

Berlin said a prospect he spoke to said their plans would be to keep all of the building’s tenants at the site. The only tenant which might be affected if the building sold would be Uncommon Grounds, a local coffee shop.

“It’s just that they might need the area that the coffee shop is in to have their registration desk there,” Berlin said. “And they would have to make the service elevator into a passenger elevator for guests. But this is all just pie in the sky right now.”

[Doug Loudenback]

This is a great building and it would be great for the upper stories to be used for a hotel ... I hope that is doable.

Here are a couple of pics I took on June 8, 2008 ...

Larger: http://i8.photobucket.com/albums/a49...e_6_8_08_3.jpg



Larger: http://i8.photobucket.com/albums/a49...e_6_8_08_1.jpg



The building was originally the Mideke Supply Building built by Reinhart & Donovan in 1919 ...
see Doug Dawgz Blog: The Reinhart Legacy Part 2.

Larger: http://i8.photobucket.com/albums/a49...e_6_8_08_2.jpg

[Dan]

This is a beautiful building with tons of options for development. It certainly has a higher and better use than citywalk (although that is a consistently successful nightclub).

I could see it being a gallery of high-end retail shops (basically: transplant what's left of 50 penn place) if they open it up with internal escalators. There's plenty of room. The trick with it (and others) is the lack of immediately accessible parking. But that is a solvable problem, particularly if people can get used to walking across the street for parking.

[John]

The top floor has amazing potential. Tall ceilings and a lot of character.

I'd love to have a loft up there.

[jbrown84]

I'm confused. Did the article say Uncommon Grounds was in the 1-story section? If so, it has moved since the last time I was over there. And what was that about no windows on the west side?

[warreng88]

The top floor has amazing potential. Tall ceilings and a lot of character.

I'd love to have a loft up there.

That is what I am thinking. Let me add that since it is a four story building and the bottom two (of one section) are occupied by citywalk, I think it would be a good idea to do offices on the third floor (plus half of the second floor that is not over the club) and then condos on the top with the high ceilings.

[Pete]

Last time I was in that area that building really struck me, particularly how under-utilized it is.

I can't imagine the BT design committee having an issue with inserting windows on the west side, as long as it was done in suitable style.

It's a fantastic building in a great location. Hope something comes of all this.

[brianinok]

I also think the Spaghetti Warehouse building is underutilized. It is 6 stories, and only the bottom is used as far as I know. All those bricked up windows could be knocked out and used again. It seems it could easily be hotel, residential, or offices. Maybe even multiple uses.

[Pete]

LOTS of those buildings only have stuff on the ground floor.

I just don't understand it, especially given the appetite for residential living in that area.

[metro]

It baffles me as well, complacent property owners doing nothing with their buildings that have huge potential and demand.

[Dan]

The Spaghetti Warehouse building certainly seems like it can be used.

What I have heard from the owners is that condos are difficult b/c of the lack of immediately accessible parking. That is: who wants to park across the street every day for their home, lugging groceries, etc?

But it is not an intractable problem: there are parking lots adjacent to the Mercantile building as well as nearby the Spaghetti warehouse. Those lots can be built up into multi-story parking.

Also: I would bet good money (but do not know for sure) that asbestos insulation is bottled up inside all the upper floors of the Spaghetti Warehouse building. Just like the Skirvin, that could be an impediment to re-use. It was, of course, commonplace back in the day to have that insulation, and nobody has touched the upper floors for years. I would think, though, that we are reaching a point where there is a reasonable payback on removing the asbestos and converting the upper floors for use.

[murphystone]

I am with you on the parking but from what I heard all lots are not at full capacity and parking spaces could be rented by business owners for customers and employees. I heard City Walk does this for their employees. City Walk is a huge asset to the building. The crowd the draw is vey huge and that crowd would do other activities and sped money if someone would do something recreation and food wise in there.
I would like to see an ESPN Zone or Dave and Busters,

[LordGerald]

It's all about mindset. The Merc building has had a lot of look-sees from companies like telemarketing firms, but the number one drawback has been parking for their employees. Despite the north lot's availability (North of Main), people can't get it through their heads that they might have to walk 100 yards away from the bldg to get to their cars, so they can go to Taco Bell for lunch.

Also, the Merc building's third and fourth floor ceilings are actually constrained, with lots of pillars, so it would have to take a business or concept that could accept the current architecture or a vivid imagination.

[David Pollard]

Wait until gas prices hit $5 per gallon. Then people won't mind walking across the street to their car! Think also of what it could do to the levels of obesity.

[BDP]

What's funny is that a lack of on site parking actually helps create an urban atmosphere, because then there are more people walking around and interacting and just more energy on the street. Honestly, if every place we build ends up with on site parking, we will have a relatively "dead" urban area. There is nothing wrong with making it easier to walk or even, gasp, take some public transportation than to park you car. The question is do people who want to live downtown really want an urban lifestyle or just to have their house packaged to look like it's in an urban area?

[LordGerald]

Mindset, people. We don't have it. The people on the board might have it, but the average Central Oklahoman does not.

Do you know the most profitable restaurant in Bricktown? It's Zios. Why? Because they have their own parking lot. People come from Eastern Oklahoma County or Yukon to BT and the "big city." They park at Zios. Go in, eat a bowl of spaghetti and meatballs, and go back home.

That is the mindset that needs to be broken.

[OKCMallen]

I can't imagine a hotel above it or much demand for residentials. Who wants to stay there on a weekend and fight the clubber crowd and music?

[johnnyboyokc]

what lot does zios own?

[dismayed]

Part of the problem is also codes. Many of those buildings are fine for having a restaurant in them, but to allow someone to live there would mean lots and lots of upgrades. Most property owners probably just don't want to mess with the one time expense, even though in the long run they'd probably make a ton of money off of it. If I were them I would partner with someone willing to take the risk, let them pay the costs, and then take a cut of the eventual profits.

[Pete]

I understand the issues and concerns about parking but the Park Harvey has done very well and has the exact same issue.

I think it has more to do with the fact that new construction is still much cheaper then cleaning up and remodeling older buildings. And because there is still plenty of space to build -- even in and around Bricktown -- that has been the preferred way of developing to date.

[Pete]

I understand the issues and concerns about parking but the Park Harvey has done very well and has the exact same issue.

I think it has more to do with the fact that new construction is still much cheaper then cleaning up and remodeling older buildings. And because there is still plenty of space to build -- even in and around Bricktown -- that has been the preferred way of developing to date.

[Steve]

what lot does zios own?

JohnnyBoy, unless there's been a land sale there, I suspect he's mistaken.

[mecarr]

Mindset, people. We don't have it. The people on the board might have it, but the average Central Oklahoman does not.

Do you know the most profitable restaurant in Bricktown? It's Zios. Why? Because they have their own parking lot. People come from Eastern Oklahoma County or Yukon to BT and the "big city." They park at Zios. Go in, eat a bowl of spaghetti and meatballs, and go back home.

That is the mindset that needs to be broken.

I agree 100%. Well said.

[LordGerald]

what lot does zios own?

Didn't say they owned it, I said they "have their own," as in the fact that it is directly adjacent to the restaurant. You can park, walk in, eat and walk out, and go back home to Harrah.

Yes, other BT restaurants have adjacent parking as well, but aside from Tapwerks, Zio's has the most convenient.

[johnnyboyokc]

sorry very vague response. However understood...............