Any new midtown/Cherry Street developments?

[TulsaGoldenHurriCAN]

I'm less upset now about them tearing out the patio at D'vina.  Looks like a full makeover of this into retail and office and what looks like a patio space for a cafe.  Looks like it will be a nice development.

That does look a lot better. Going from something that looks like a Miami-esque strip club to a respectable urban-looking development that will fit the area well.

It looked so much better when it was Doe's. Glad D'vina didn't last long because they ruined the look of that corner.

[SXSW]

Another rendering of the project at 15th & Quincy.  James Boswell is the architect.  



Anyone know the latest on the former La Madeleine space at 15th & St Louis?

[AdamsHall]

Anyone know the latest on the former La Madeleine space at 15th & St Louis?

I drive by frequently and they have fencing up around it now and all of the AC units are sitting in the parking lot behind the building.  That makes me think tear down, which surprises me in this situation.

[SXSW]

I drive by frequently and they have fencing up around it now and all of the AC units are sitting in the parking lot behind the building.  That makes me think tear down, which surprises me in this situation.

This was in the TW today, 4 story building with retail along 15th and apartments above.  Same developer and architect as Roosevelt's.  Bruce G Weber??

[LeGenDz]

Couldn't find the article for the life of me. Could you post a link?

[MostSeriousness]

https://www.tulsaworld.com/business/realestate/new-retail-restaurants-apartments-planned-for-cherry-street/article_15962982-e8f8-5e15-9324-12bf802f93e1.html

[SXSW]

Kind of shocked to see Bruce G Weber moving to Cherry Street.  There will be also be a rooftop bar/restaurant called Sidecar above the apartments. 

[DowntownDan]

I'm happy to see they are preserving the La Madeline building for Bruce G. Weber and essentially building around it for the larger development.  I like seeing more density in midtown.  Rents will probably be a ton for the apartments though.

[SXSW]

I'm happy to see they are preserving the La Madeline building for Bruce G. Weber and essentially building around it for the larger development.  I like seeing more density in midtown.  Rents will probably be a ton for the apartments though.

Probably but they are pretty small apartments, only 625 to 800 SF per the article.  The views should be good there.  This same apartments/condos over retail concept would be great to see on the parking lot at Lincoln Plaza by Nola's/Jason's Deli/Chimi's.

[TulsaGoldenHurriCAN]

Probably but they are pretty small apartments, only 625 to 800 SF per the article.  The views should be good there.  This same apartments/condos over retail concept would be great to see on the parking lot at Lincoln Plaza by Nola's/Jason's Deli/Chimi's.

Article mentioned it's a $9 million investment and will have 28,000 square feet. That is $325/ft2 cost total! That is quite a high dollar build! Developer did mention land is so pricey on Cherry St now that you have to build up for numbers to work. Still, they must be making it up very nice with a really high end look for that price (and wooing Bruce G Weber over).

If they have 15 units around 700 square foot average and fetching around ~$1200/month ($18k/mo), that leaves 17500 for retail and restaurant space.  Class A Space looks to be going around $2-$2.50/mo/ft2 on Cherry St (So ~$35k/mo for remaining space). That adds up to $636k/year which is ~7% ROI assuming 100% year-round occupancy at those pretty high rates and not including maintenance or any other costs. That seems like pretty slim margins for that sort of investment, but glad they're doing it and making something so nice.

[TulsaGoldenHurriCAN]

A decent rule-of-thumb is you aim to get about 1% of the total value of property in rent per month, but that's getting much harder to do with real estate prices like they've been recently. So ideally $90,000/month for this place so you could pay the mortgage and still have some left over. That doesn't seem possible for this place. Glad the developer who has a history making some good places is doing this one.

[Laramie]

Good development for Cherry Street; Oklahoman:  https://www.oklahoman.com/new-retail-restaurants-apartments-planned-for-tulsas-cherry-street/article/5612524

It marks Phillips' fourth development on Cherry Street, pushing his investment in the area to about $35 million. Groundbreaking is scheduled for 1 p.m. Tuesday, and the development could be completed by next fall.

"You don't get to do a lot of projects that have just that 'cool' factor," Phillips said. "It's just one of special buildings that when we get it out of the ground, it's going to look pretty cool."

Applaud Oklahomans who invest in their own communities; a true way of giving back.  Duane Phillips' fourth development on Cherry Street, a beautiful area Tulsa residents continue to upkeep & maintain.

[Conan71]

Article mentioned it's a $9 million investment and will have 28,000 square feet. That is $325/ft2 cost total! That is quite a high dollar build! Developer did mention land is so pricey on Cherry St now that you have to build up for numbers to work. Still, they must be making it up very nice with a really high end look for that price (and wooing Bruce G Weber over).

If they have 15 units around 700 square foot average and fetching around ~$1200/month ($18k/mo), that leaves 17500 for retail and restaurant space.  Class A Space looks to be going around $2-$2.50/mo/ft2 on Cherry St (So ~$35k/mo for remaining space). That adds up to $636k/year which is ~7% ROI assuming 100% year-round occupancy at those pretty high rates and not including maintenance or any other costs. That seems like pretty slim margins for that sort of investment, but glad they're doing it and making something so nice.

Must be the tax advantages of depreciation to help shore up the 7% margin. Not really sure how all that works for commercial development as I've only had experience on residential rental units or depreciable business assets on a very small scale.  Since I no longer live in Tulsa and only get to return every 3-6 months, it's rather exciting to see all the changes whenever I make a return trip.

[Dspike]

"Another irony is that Cherry Street's success could become its biggest threat, if it attracts developers who don't appreciate the area's unique appeal and want to "suburbanize" it. . .

The owner of Oak Properties LLC, Phillips is behind two recent developments on 15th. The Cherry Street Ridge building, with Chipotle as an anchor tenant, has an Art Deco flare. And the even more recent 1551 Building, with Roosevelt's pub as an anchor, offers a modern interpretation of the older red-brick storefronts along the street.

Both buildings fit seamlessly into the historic fabric of Cherry Street.

Now Phillips is building a $9 million project called 1515 Cherry Street and The Lofts at 1515, but it will stand out more because it will be noticeably taller than its neighbors. Architectural renderings appear to show four or five stories in an area where one or two is the norm. . .

At street level, however, the new development will respect the storefront aesthetic that makes Cherry Street so charming."


https://www.tulsaworld.com/homepagelatest/michael-overall-cherry-street-is-trending-upward-in-more-ways/article_14d3ac50-539c-5fa4-a0b9-496125d98e94.html

As I missing something in this article. The author is concerned about suburban development taking over Cherry Street, but then discusses three new additions that all "respect" the Cherry Street vibe. Has there been something that has come in contrary to the urban/walkable character?

[TulsaGoldenHurriCAN]

"Another irony is that Cherry Street's success could become its biggest threat, if it attracts developers who don't appreciate the area's unique appeal and want to "suburbanize" it. . .

https://www.tulsaworld.com/homepagelatest/michael-overall-cherry-street-is-trending-upward-in-more-ways/article_14d3ac50-539c-5fa4-a0b9-496125d98e94.html

As I missing something in this article. The author is concerned about suburban development taking over Cherry Street, but then discusses three new additions that all "respect" the Cherry Street vibe. Has there been something that has come in contrary to the urban/walkable character?

The CVS was one although they made that as nice as it could be for being a CVS. It is one of the nicest most urban-looking CVS's I've seen, besides some of them in downtowns in larger cities.

I think the article is basically saying we are lucky we have developers like Phillips who is doing it right and that if it gets really financially desirable to build larger in Cherry Street, developers might demolish some of the old buildings and replace with much larger buildings that may not fit the area as well.


That sort of thing has happened in a lot of these type of districts in larger areas. Rainey Street in Austin has struggled with keeping the old charming houses (sort of how Cherry Street used to be) versus developers demolishing them and making high rises. It's a bizarre street with old cottages converted to bars/restaurants and high rises right next to them. Locals and historic preservationists hate how easy it is for developers to stomp out the history and fabric of what made the street so unique.

You can look around here and see the difference between what it was and what it is becoming:
https://www.google.com/maps/@30.2588325,-97.7387739,3a,75y,35.9h,93.83t/data=!3m6!1e1!3m4!1sR7oGEd1J_8Om-GXib-CuIw!2e0!7i16384!8i8192

Basically lets take this really neat unique eclectic area and try to capitalize on it by destroying everything that makes it unique. So the heart of that area might be lost but developers will profit anyways just from being close to downtown Austin where they can get great rent, regardless of what happens to ol Rainey street. It is sort of free market to let them do that but a bit of a shame to lose what it was. The only thing you can do is incentivize keeping the structures for historical reasons via tax credits and/or laws preventing demolition or severe penalties.

Cherry Street already had this happen mostly when a lot of of the cottages along 15th were demolished for commercial buildings and some of the original interesting shopping strips were demolished. So IMO Cherry Street doesn't have quite as much to lose in that regard as this is already the redeveloped version.