Mercantile building sold; another development planned

[Pete]

Bricktown Mercantile building bought
By Richard Mize and Steve Lackmeyer
Business Writers
Call it another high note for Bricktown.

Bricktown Mercantile, one of the most prominent properties in Oklahoma City's entertainment district, sold this week to the tune of $4.2 million — a whopping 55.5 percent more than it fetched when sold less than three years ago, and almost three times what it brought in 1999.


Gary Berlin, doing business as West Indies Trading Co. LLC, bought the property, which has City Walk, the multiple-nightclub venue, Uncommon Grounds, a specialty coffee business, and other retail, office and residential tenants.

Gary Cotton — 100 E Main LLC — sold the property, on the northeast corner of Oklahoma Avenue and Main Street, after owning it for 34 months.

Louis Dakil of Dakil Auctioneers handled the sale, which closed Tuesday, but it was not by auction.

R. Ray Roberts, spokesman for the new owners, said they bought the property after failing to win the bid for another building auctioned one block north on Main Street.

Why it was sold
Cotton, who also owns undeveloped property along the Bricktown Canal, said proceeds will go toward developing the corner across from the AT&T Bricktown Ballpark.

"I had too many eggs in this basket,” Cotton said. "I want to focus on this one development (on the canal).”

Cotton said he originally hoped to convert the Mercantile building into condominiums, but that plan was stalled when he clashed over renewal of a lease with anchor tenant CityWalk.

Roberts said the new owners already were acquainted with CityWalk's owners and see the operation as an asset. Though they originally also considered housing for the empty third through fifth floors, the owners are considering offices and retail instead that could co-exist with CityWalk.

"Offices are daytime users, and they would not be subject to nighttime noise produced by the clubs,” Roberts said.

Roberts said the owners are in talks with Timberlake Construction to complete a two-story fire escape that would allow renovation of the top three floors.

"We're moving forward with our plans,” Roberts said. "We can't do anything with the third, fourth or fifth floors until that fire escape is done.”

Roberts said the owners also hope to maintain 3rd Degree Advertising and Uncommon Grounds coffee shop as tenants.

"We're very happy with the current tenants and leases,” Roberts said.

Cotton, meanwhile, is hoping to announce final plans for development along the canal by fall. His team includes Timberlake Construction and Architectural Design Group.

Except for what experts expect to be a temporary lull in single-family housing, real estate in Oklahoma City continues to appreciate across all sectors — and Bricktown hasn't missed a beat.

"The music keeps getting louder over there in terms of people's expectations,” said Ford Price, co-managing partner of Price Edwards & Co., Oklahoma City's biggest local commercial realty firm.

The property comprises two five-story loft industrial buildings of 55,096 square feet and one single-story warehouse of 10,350 square feet, all built in 1919 for Mideke Supply Co., an industrial supply company founded in 1906 that operated until 1993.

Tenants to stay
It's not the first time tenant Roy Page has seen the building change ownership. The business he leads, Third Degree Advertising, Suite 200, has been in Bricktown Mercantile since 1998. He said tenants found out about the sale Monday and that he met Berlin briefly as the keys were handed over to the new owner Tuesday.

"There is no change in our situation. Our lease stays intact,” Page said of Third Degree, which occupies about 6,000 square feet.

Price said buying property in Bricktown seems to be a wise investment. "Much, not all, downside risk” has melted away with the growth in popularity of the area, he said. "No one wonders if it's going to make it,” he said. "Where does it go from here? The housing has started. How much more is there? The retail has started. How much more is there?”

[jbrown84]

I'm glad they are not giving CityWalk the boot Founders Tower-style. I'm not a clubber, but I'd hate to see a major Bricktown club close just because of a change in ownership.

[metro]

same here, I'm not a clubber and never been to CityWalk, but it would be stupid to boot them out the door, they are a major founding establishment and anchor tenant of Bricktown. Glad to see Gary Cotton is slowly getting off his rear and moving forward. Hopefully he'll get the ball rolling on the most prime vacant lot in all of Bricktown.

[Pete]

Sounds like Cotton has some great partners for the new development.

And it also sounds like it may be condos since that's what he wanted to do with the Mercantile Building.

[John]

The top floors in the Mercantile building are awesome and have great views of downtown and Bricktown.

I'd be willing to put up with the music until 1:45 or so to live there.

[fsusurfer]

I think City Walks life has about run its course. Over the last few years, the crowds have been getting worse and the clitentell has changed dramatically. The upper-scale bars in the area are attracting the better crowds. At least once a weekend cops are called and people are hauled off to jail because of big fights. I sure wouldnt want to have an office or live next door with that kind of activity going on. Normally in bricktown a bar lasts 2-3 years. City Walk has been around about 6. Also, I had a ex who worked there, and according to her the place isnt making money any more. I give it another year before its gone.

[murphystone]

It is so refreshing to see new faces in Bricktown. The Mercantile Building is a diamond in the rough. Every time I go by there I just imagine I were living in the Roaring 20's.
I agree with the person that said the top floors are awesome. I too would put up with the music, might even dance around in my kitchen alittle.

City Walk is an asset to Bricktown. I have been there a few times and it is very well organized, very classy inside it has something for every age and so much variety. The heavy presence of City Walk Employees was a welcome site in such a huge establishment. People from all over the world visit there when they are in town. Bricktown is truly a destination not a happenstance.

I am looking forward to see where this huge piece of our Oklahoma History will go in the future.

Bricktown amazes me on a daily basis

[kevinpate]

I'm no engineeer but would it take much to insulate out the bulk of the sound? I could see it being an issue on the floor immediately above (recalling a night the former Hilton NW parked me, briefly, in a room immediately above the halloween bash) but beyond that it seems a minor matter, particularly for the rates Bricktown living spaces can command.

[Patrick]

Ahhhh, how I miss the Bricktown Antique store that used to fill that building back in the 90's.

[redland]

Ahhhh, how I miss the Bricktown Antique store that used to fill that building back in the 90's.

I agree---that store was a jewel, and I think if it had waited it out a few more years it would be doing well by now.

[Luke]

I'm really curious to see some renderings of the Canal Corner lot.

[murphystone]

I heard rumors about lofts coming to the 4th floor of the mercantile with a view of Downtown? Anyone heard that one? That would definitly be the view to die for.
Any info would be appreciated. I would like to get in on that deal.
Please let me know if anyone hears anything on this one