The new owners of the Missoula Mercantile came away from their recent visit emboldened by the property’s condition and the reception they received after announcing plans to redevelop the vacant building.
But finding market data for Missoula has been difficult, and it’s that information that will guide their final plans for the historic property.
“You’re really trying to draw conclusions on limited data sets,” said Stephen Glenn, one of the property’s new owners. “We have some good ideas, but we need to substantiate them with actual data so we can go to our investors and our users.”
Glenn and Dario Pasalalpi, based in Reno, Nevada, purchased the Mercantile for an undisclosed price. They visited Missoula in November for a meet-and-greet, and they still plan to close on the property next spring.
Until then, Glenn said, they won’t accept letters of intent from prospective tenants. Interest in the project hasn’t waned since the purchase was announced by Zilla State Realtor Jed Dennison in October.
“I just received an email from a prospective tenant who has a specific idea for a retail store,” said Glenn. “People have been following up with their interest. We’ll have a better idea after the first of the year.”
Glenn said the development team will continue working to gather market data and package the property around a solid plan. The data will determine effective rental rates, unit sizes and development costs.
It will also reveal Missoula’s community draw and economic trends. While Glenn has been pleased with the reception, he said the city should consider packaging its complete market data and having it ready for developers who show interest in the city.
“We’re trying to reinterpret the property for 2015,” said Glenn. “You’re never going to get another mercantile store, a Bon Marche or a Macy’s, in there. In this climate, that’s not possible. Those kinds of stores are out on Reserve Street and for towns the size of Missoula, that’s their model.”
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Erected 136 years ago, the Mercantile has served as a downtown retail anchor and its vacancy has been hard to overlook. The most recent occupants included the Bon Marche and Macy’s, which closed and vacated the property in 2010.
Octagon Capital Partners purchased the building the following year and cleared the structure of asbestos and lead-based paint. An effort to find a retail anchor didn’t pan out and the property was again listed for sale at $4.5 million.
Glenn said their November visit lasted 12 days. They spent much of that time meeting community members and observing the building to better understand its needs. While the structure needs work, he said, they were pleased with its overall soundness.
“There’s no doubt it can be repaired,” he said. “Once you get your arms around the building, you have to get your arms around the market, and that’s what we’re trying to do.”
