Tapstone Energy, a company founded in October by former SandRidge Energy CEO Tom Ward, is preparing to establish its permanent headquarters at the Mideke Building in Bricktown.
The move is expected to conclude within one year following renovations to the building, which was built in 1919 and is on the National Register of Historic Places. The company’s initial occupancy will be in the top three floors, which have been empty since Mideke Supply Co. closed its operations in Bricktown more than 30 years ago.
Newmark Grubb represented the building owners and Tapstone. The deal with Tapstone provides enough space for the company to grow its workforce to up to 150 employees in the Mideke building. Tapstone is currently located in downtown’s Oklahoma Tower, 210 Park Ave.
“We believe that Bricktown being adjacent to the Central Business District makes it prime real estate for future business development,” Ward said. “There is tremendous value for business in these beautiful and historic buildings above and around restaurants and store fronts. With employees filling the vacant space, there can be a great synergy among retail, residential and business that will be beneficial for all.”
The company’s move into Bricktown will include renovations that will be overseen by architect Aaron Rogers with Rogers Partners and financed through Chris Dunning at CBRE. Rogers is scheduled to present renovation plans Wednesday to the Bricktown Urban Design Commission.
“This is the same group that did the renovation of the Braniff Building,” said Tapstone Energy spokesman Greg Dewey. “This is a presentation only, designed to get feedback from the committee members.”
Andy Burnett, Zach Martin and Jeff Johnson, partners in Mideke Building LLC., bought the top three floors of the five-story building, 108 E Main, last year and initially intended to adapt the space into housing.
“We moved away from housing more because of Tapstone than a fear of the housing market,” said Burnett, who is also partnered with developer Gary Brooks on the 250-unit Steel Yard apartments being built in east Bricktown. “There’s a lot of housing coming online downtown but we believe that the shift to urban housing is more than a fad with a lot of people looking to move downtown. We had just finished our final designs on loft apartments when Tom Ward and Tapstone became a possibility.”
Martin and Burnett have spent the past few years brokering and developing older warehouses in Bricktown with a focus on how to bring life to empty upper floors.
“While the lower part of the Mideke has been occupied, like so many Bricktown buildings, the upper floors have remained vacant,” Martin said. “When the district first started to come to life, most owners picked the low hanging fruit by simply renovating and leasing out the street level spaces. As the area matures, these hastily developed buildings can now begin to realize their full potential. ”
Martin also said the Tapstone renovations are well timed with Class A office space downtown running at 97 percent occupancy. The other new Class A office space hitting the downtown market is the Braniff Building and the Parkside Building, both started while Ward was at SandRidge.
“With increased demand and virtually no supply, we will see more redevelopment of downtown’s few remaining vacant buildings, followed by new construction,” Martin said. “I believe we will see announcements of downtown low rise spec office space by the end of the year.”