Mercantile (Conagra campus development)

[ita]

Todd Heistand talks about this building in connection to the demand the streetcar would create in residential development. He did mention that they have had a slow lease up. That does not bode well in the short term and probably why we are not seeing movement here. Just speculation though.

[nativeomahan]

Possibly their prices are too high?

[skinzfan23]

Possibly their prices are too high?

I think that was some of the concern, at least by a few of this on this site. The prices did to seem to be on the very high end for Omaha.

[TitosBuritoBarn]

Going off "available units" on apartments.com, there are currently ~49 that are available. That's about 13% of all units.

[ita]

Going off "available units" on apartments.com, there are currently ~49 that are available. That's about 13% of all units.

Q4 2023 vacancy rate in Omaha was half that. Downtown occupancy rate was at 95%.

https://mktgdocs.cbre.com/2299/8dff60b4 ... 584408.pdf

While it give you pause about the Mercantile, almost half of the building seemed to still be under construction at the end of last year, so it may just be the natural rate of filling up.

[nativeomahan]

Friends suggested we try Memoir for their Happy Hour. We went on a Monday and the restaurant was very busy, both inside and out on their patio. There were a good many tables of 8, 10 even 15 present even at 5:30 pm. Happy Hour goes until 6 pm. Many items on their regular menus are discounted 25% for Happy Hour.
The restaurant is very handsome inside, with lots of dark wood. The menu is pretty international, with everything from American to European to Japanese dishes. The food was excellent and our server, though obviously brand new and a bit nervous, did a commendable job, and did not object to splitting our check. This is definitely a “business casual/dressy casual” place, as many ladies were in dresses and quite a few men in sport coats and slacks. Our checks worked out to about $60 per person, pre tip, but that included some wine.

[BIGO88]

Cham Pang Lanes and Ghost Donkey announced they will be opening on the 23rd.

[iamjacobm]

Cham Pang Lanes and Ghost Donkey announced they will be opening on the 23rd.

Obviously the owners being an Omaha group helps, but the brand is in Vegas, Denver, Phoenix, Auckland NZ, and Melbourne AU. Chicago and Dallas up next. Not a bad list of peers for the concept.

[iamjacobm]

Relatively new marketing package for the T3 office building. Looks like they are opening it up to be on 10th street or the previously proposed lot to the east of the apartments. I assume its to allow a potential anchor tenant to pick their preference.

https://listingsprod.blob.core.windows. ... 4df02e18f7

[Garrett]

Relatively new marketing package for the T3 office building. Looks like they are opening it up to be on 10th street or the previously proposed lot to the east of the apartments. I assume its to allow a potential anchor tenant to pick their preference.

https://listingsprod.blob.core.windows. ... 4df02e18f7

Who the heck made the map with the streetcar line on page 17? So many wrong things

[Doctor Fate]

On page of that doc, the condos are still on there (#5) with the same number of units (250). That building looks like it would be a little over 43,000 sq ft. There is a condo tower in Salt Lake City called The Regent that has 150 units and is on just over 31,000 sq ft. The ground floor has retail and lobby space, with the second and third floor having office and amenity space, while parking is underground. It is 265 ft. Someone at the Nebraska Examiner told me that Hines told them over a year ago that they were leaning towards apartments over condos at the Mercantile, but if this is condos maybe this tower is closer to 200 ft, if not over.

[Brad]

I was downtown early Sunday morning walking to take a different photo when I cam across this scene and had to stop and take a photo of this great light.

1.

20250727881A1832.jpg

[skinzfan23]

So much better than the little used space Conagra used to have there.

[Flyer14]

I was downtown early Sunday morning walking to take a different photo when I cam across this scene and had to stop and take a photo of this great light.

1.
20250727881A1832.jpg

This is such a perfect picture it looks like a rendering. They should pay for this one and put it on there website to show their work!

[Jins123]

I was downtown early Sunday morning walking to take a different photo when I cam across this scene and had to stop and take a photo of this great light.

1.
20250727881A1832.jpg

This is such a perfect picture it looks like a rendering. They should pay for this one and put it on there website to show their work!

I was ready to say the same thing. Brad, this looks like a rendering pic. Stellar shot!

[nativeomahan]

Yes it looks like a rendering. I mean that as a compliment, btw.

[Brad]

Thanks everyone, it was total right place right time. I had no intention of taking that photo, but couldn't pass it up.

As far as looking like a rendering, in a rendering you get to pick your light, in photography you go at the right time and hope for the best.

[djc311]

Yes it looks like a rendering. I mean that as a compliment, btw.

Amazing pic! If only every street downtown wasn't cracked like a spider web. LOL

And, to be fair... I know this issue (the streets) isn't limited to downtown only.

[iamjacobm]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

[Doctor Fate]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

That's really interesting. What could they need that parcel for? Maybe parking garage on the SE corner and the hotel on the NE corner? Would that make it cheaper for them? Unfortunately that would lower the height of the hotel.

[iamjacobm]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

That's really interesting. What could they need that parcel for? Maybe parking garage on the SE corner and the hotel on the NE corner? Would that make it cheaper for them? Unfortunately that would lower the height of the hotel.

Some language in the Special Warranty Deed includes preventing any hotels below “upper mid scale” based on STR Chains scale, allowing Drury as an approved brand with “intended hotel concept” in the language, ConAga also has a ROFR if Drury doesn’t build and wants to sell.

Based on that feels like Drury would build here and I would assume ConAgra/Hines will want some design guidelines to make sure it fits with the campus.

No clue what that means for the NW corner. Maybe they sell with future restrictions on hospitality maybe it’s parking. Will be interesting to see plans.

[Brad]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

That's really interesting. What could they need that parcel for? Maybe parking garage on the SE corner and the hotel on the NE corner? Would that make it cheaper for them? Unfortunately that would lower the height of the hotel.

Some language in the Special Warranty Deed includes preventing any hotels below “upper mid scale” based on STR Chains scale, allowing Drury as an approved brand with “intended hotel concept” in the language, ConAga also has a ROFR if Drury doesn’t build and wants to sell.

Based on that feels like Drury would build here and I would assume ConAgra/Hines will want some design guidelines to make sure it fits with the campus.

No clue what that means for the NW corner. Maybe they sell with future restrictions on hospitality maybe it’s parking. Will be interesting to see plans.

I heard there were also some restrictions on the NW corner preventing them from having meeting and conference space.

[iamjacobm]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

That's really interesting. What could they need that parcel for? Maybe parking garage on the SE corner and the hotel on the NE corner? Would that make it cheaper for them? Unfortunately that would lower the height of the hotel.

Some language in the Special Warranty Deed includes preventing any hotels below “upper mid scale” based on STR Chains scale, allowing Drury as an approved brand with “intended hotel concept” in the language, ConAga also has a ROFR if Drury doesn’t build and wants to sell.

Based on that feels like Drury would build here and I would assume ConAgra/Hines will want some design guidelines to make sure it fits with the campus.

No clue what that means for the NW corner. Maybe they sell with future restrictions on hospitality maybe it’s parking. Will be interesting to see plans.

I heard there were also some restrictions on the NW corner preventing them from having meeting and conference space.

Right I do remember seeing something about that I think they might have even been capped at a certain room count since the NW corner was sold by the Embassy Suites owners if I recall. This could free them up to build the space they want. Lots of moving parts and restrictions haha.

[djc311]

In an interesting turn it looks like Drury bought the parcel on the SE corner of 10th and Harney from ConAgra for $5.8 million. They now control the NW and SE corner on the intersection.

That's really interesting. What could they need that parcel for? Maybe parking garage on the SE corner and the hotel on the NE corner? Would that make it cheaper for them? Unfortunately that would lower the height of the hotel.

Some language in the Special Warranty Deed includes preventing any hotels below “upper mid scale” based on STR Chains scale, allowing Drury as an approved brand with “intended hotel concept” in the language, ConAga also has a ROFR if Drury doesn’t build and wants to sell.

Based on that feels like Drury would build here and I would assume ConAgra/Hines will want some design guidelines to make sure it fits with the campus.

No clue what that means for the NW corner. Maybe they sell with future restrictions on hospitality maybe it’s parking. Will be interesting to see plans.

I heard there were also some restrictions on the NW corner preventing them from having meeting and conference space.

Right I do remember seeing something about that I think they might have even been capped at a certain room count since the NW corner was sold by the Embassy Suites owners if I recall. This could free them up to build the space they want. Lots of moving parts and restrictions haha.

Man, I hope they do not build an actual "Drury Inn" down there... may as well be a Motel 6 or a Super 8 if that's what goes in. Not much of a step above a Best Western, IMO.

[nebport5]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

[ita]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

I am guessing that they are abandoning plans on the NW corner altogether. There are no restrictions on this SE lot like the NW one. I think they will unload the NW property even though they paid a pretty penny for it. It is still a valuable lot and with the streetcar now in full construction swing, I think it will garner even greater interest from potential developers. My take only.

[Louie]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

I am guessing that they are abandoning plans on the NW corner altogether. There are no restrictions on this SE lot like the NW one. I think they will unload the NW property even though they paid a pretty penny for it. It is still a valuable lot and with the streetcar now in full construction swing, I think it will garner even greater interest from potential developers. My take only.

That would be a best case scenario, imo.

[Doctor Fate]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

I am guessing that they are abandoning plans on the NW corner altogether. There are no restrictions on this SE lot like the NW one. I think they will unload the NW property even though they paid a pretty penny for it. It is still a valuable lot and with the streetcar now in full construction swing, I think it will garner even greater interest from potential developers. My take only.

That would be a best case scenario, imo.

Totally agree. They wouldn't have a cap on the number of rooms then either.

[Garrett]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

Of the brands listed, all of the Drury name brands (+Drury Suites) are considered Upper Mid Scale on the STR Chains Scale, while Pear Tree Inn is just Midscale so wouldn't qualify. For reference, Embassy Suites is considered the next tier up at Upper Upscale

[Louie]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

I am guessing that they are abandoning plans on the NW corner altogether. There are no restrictions on this SE lot like the NW one. I think they will unload the NW property even though they paid a pretty penny for it. It is still a valuable lot and with the streetcar now in full construction swing, I think it will garner even greater interest from potential developers. My take only.

That would be a best case scenario, imo.

Totally agree. They wouldn't have a cap on the number of rooms then either.

And I think something more mixed use (or at least multiple tenants) makes more sense on the NW lot. I think it would help stretch the OM footprint a little.

[ita]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

I am guessing that they are abandoning plans on the NW corner altogether. There are no restrictions on this SE lot like the NW one. I think they will unload the NW property even though they paid a pretty penny for it. It is still a valuable lot and with the streetcar now in full construction swing, I think it will garner even greater interest from potential developers. My take only.

That would be a best case scenario, imo.

Totally agree. They wouldn't have a cap on the number of rooms then either.

They may even bring in more conference room space. If that's the case, I would love to see this turn into something more like their Downtown Nashville location than their Downtown Lincoln one.

[Garrett]

If they're going through the trouble of acquiring a separate lot I would definitely hope for something significantly more substantial than their previous restrictions

[Brad]

Grow Omaha has the restrictions listed out in their article today.

https://growomaha.com/drury-hotels-purc ... maha-site/

The purchase came with several restrictions including limitations of 252 hotel rooms, 4,000 sq. ft. of meeting space and an opening date no sooner than 2029. Embassy Suites operates a hotel one block to the south.

[Garrett]

Grow Omaha has the restrictions listed out in their article today.

https://growomaha.com/drury-hotels-purc ... maha-site/

The purchase came with several restrictions including limitations of 252 hotel rooms, 4,000 sq. ft. of meeting space and an opening date no sooner than 2029. Embassy Suites operates a hotel one block to the south.

To be clear, the listed restrictions are for their first lot, not the new one.

[Doctor Fate]

Grow Omaha has the restrictions listed out in their article today.

https://growomaha.com/drury-hotels-purc ... maha-site/

The purchase came with several restrictions including limitations of 252 hotel rooms, 4,000 sq. ft. of meeting space and an opening date no sooner than 2029. Embassy Suites operates a hotel one block to the south.

To be clear, the listed restrictions are for their first lot, not the new one.

So construction on this new lot could start much sooner and be taller without all the restrictions.

[skinzfan23]

I am excited to see what they come up with for the ConAgra land. My hope is something of decent height 8-12 story min and sooner than the other lot would have been developed.

[jjjjhskr]

I was hoping for a Hyatt but I think that happens with one of the lots by Schwab. I really want something to happen on those surface lots on 10th and Harney that charge a ridiculous amount to park there.

[Doctor Fate]

This lot is 1.4 acres right? Makes me think they are more likely to build out than up.

[ita]

Grow Omaha has the restrictions listed out in their article today.

https://growomaha.com/drury-hotels-purc ... maha-site/

The purchase came with several restrictions including limitations of 252 hotel rooms, 4,000 sq. ft. of meeting space and an opening date no sooner than 2029. Embassy Suites operates a hotel one block to the south.

To be clear, the listed restrictions are for their first lot, not the new one.

So construction on this new lot could start much sooner and be taller without all the restrictions.

Correct. No apparent restrictions with the new lot. I hope the other lot is put on the market soon. Drury might already be working on their plans for this second lot. I hope maybe beginning of 2026 we see what they have planned.

[nebport5]

It’s either Drury Inn, Drury Inn & Suites, Pear Tree Inn, or The Drury Plaza Hotel(the best one could hope for).

Is it possible they build two hotels at varying tiers?

I hope they don’t take up an entire corner of 10th St with just an f’ing garage.

Of the brands listed, all of the Drury name brands (+Drury Suites) are considered Upper Mid Scale on the STR Chains Scale, while Pear Tree Inn is just Midscale so wouldn't qualify. For reference, Embassy Suites is considered the next tier up at Upper Upscale

So this is a disappointment for previous Mercantile hotel rumors.