Developers discuss preservation and downtown retail
The Oklahoman’s Steve Lackmeyer was joined by developers Steve Mason and Aimee Ahpeatone in fielding questions from readers during his OKC Central chat on Friday.
Mason and Ahpeatone are focusing their latest efforts in Capitol Hill, including redevelopment of the historic Yale Theater, following successful efforts along Automobile Alley and the Plaza District.
This is an abridged transcript of that conversation. To read the full transcript or to participate in next week’s chat, go to NewsOK. com:
Q: There are some surface parking lots along Broadway at NW 4 and NW 5, and it seems like these would be prime real estate once we get the streetcar. Any thoughts on what could happen with these?
Mason: They’ve sold in the past two years at high prices. The streetcar and continued momentum along Automobile Alley and Midtown will continue to expedite development. The high purchase price will necessitate four stories or taller to justify the cost of the dirt.
My son Travis made a run at those parking lots, and he told me to justify the purchase price he would have to be building three- to six-story buildings.
Q: As a developer, how important are the historic tax credits to the Yale Theater project? It seems like a lot of paperwork for the cash.
Ahpeatone: It’s potentially 40 percent back. Is there more to add to that?
Mason: The appraisal on the Yale when we purchased it provided a value that was twothirds of the construction price. A normal borrower could not borrow on the building. The tax
credits are necessary to make up the difference between the appraised value of the building for a bank and the investment by the owner. It’s filling a gap.
Q: For Mr. Mason; everyone has talked about how you’ve been influential in many districts that are now hot spots for the city. What lessons have you learned during these projects that you could share with others interested in similar opportunities?
Mason: Trust Aimee’s vision. Get to the game earlier so we can spend less money. As you develop, build a great reputation for what you propose, how you get it done, and perform. (Midtown developers) Mickey Clagg and Bob Howard do an amazing job of completing what they promise. That is so important. Your reputation is so important with tenants, for being fair, good people. As a consequence, tenants find us. We don’t find tenants.
Lackmeyer: Steve, along those lines, it looks like you have a tenant mix change underway along Automobile Alley and Ninth Street.
Mason: I found Rawhide eight years ago on East Main in Norman. Rawhide was attracted to the future and opportunity of Automobile Alley. While the pedestrian traffic along Automobile Alley has exploded the last three years, those pedestrians aren’t Rawhide customers. They aren’t shopping for a cowboy couch. Retail is tiring. The owner was ready to retire from retail.
Rawhide closed on Sept. 28. While the common consensus is retail is dying, the correct retail is not dying. Retail that is not Amazon is not dying. Retail that is not big box in the suburbs is not dying. Shop Good (a Mason tenant on Ninth Street) is preparing to expand their store times five in the Rawhide space and the experience with this store will be incredible. They are in there remodeling now and will move over from Ninth on Nov. 1.
Retailers find us. We have backfilled the Shop Good space with a retailer who found us based on our reputation for being
fair, reasonable and considerate people. I can’t say who until they are ready to say that.
Q: Who is the best developer in the city that we’ve never heard about? And what projects are they currently developing?
Ahpeatone: Nathan Cao. He’s doing affordable housing all around the urban core. He has a background in finance, so he’s a numbers guy with a lot of vision. He’s personable and knows a lot of people. He has his finger on the pulse and his ear on the ground. He has a lot of energy. I hope we get to work with him someday.