September 18, 2003
If there is one sign of optimism for the Paxton Manor, its’ bold, red and reads: “Sold.”
Shamrock Parking LLC, a local partnership, announced Wednesday that it had bought the Paxton at 1403 Farnam St., and the former Bergman Jewelers building and parking lot at 1408 Harney Street for an undisclosed price.
The partnership hopes to renovate the Paxton into residential and commercial space, pending the results of a structural integrity and economic feasibility study, said real estate developer Michael Moylan.
The building, which last was used as subsidized housing for the elderly and mentally ill, has sat vacant for three years. In the late 1920’s and ’30’s, however, it was one of Omaha’s grandest hotels. Its art deco architecture, terra-cotta panels and brick facing—still visible despite boarded-up windows—hint at its earlier elegance.
Bergman Jewelers and Bergman Incentives—which sells products with corporate logos—moved to their present locations near 94th and F Streets earlier this year.
Moylan, a partner in Shamrock Development Inc., which is related to Shamrock Parking, said he hopes renovation can begin by Spring 2004.
The Paxton building, with 165,000 square feet, is assessed at $615,000 for tax purposes. The Bergman building, at roughly 15,800 square feet, is assessed at $344,600.
“I’m anxious to see what it’s going to be,” Sharon Brodkey, a spokeswoman for the Greater Omaha Chamber of Commerce, said of the Paxton Manor. “Regardless, getting rid of a rather large, currently vacant space and occupying it with something is going to increase revenue, bodies and excitement and liveliness downtown.”
R.J. Neary of Omaha-based Investors Realty Inc., who represented the seller, said developers had been interested in the Paxton building since it was listed in 1999 but were deterred by a lack of parking space.
Some have said the Bergman building will be razed for a parking lot to accommodate new condominiums.
Moylan said it is possible that the Bergman building may become a site for parking. The Paxton has much potential, he said.
“This is the last undeveloped parcel on the Gene Leahy Mall, and the views in all directions are fantastic. It’s a great location, near the new performing arts center, convention center, office towers and the Old Market.”
Aside from the Paxton, Moylan is developing another downtown property into condominiums. Called the 1000 Dodge Building, the former warehouse on the northwest corner of 10th & Dodge Streets is being converted into 12 condominiums, each with two bedrooms, priced from $325,000 to roughly $570,000.
Omaha Planning Director Bob Peters said it would be wonderful to see the reuse and renovation of the Paxton. “Mixed use is what the central business district is all about,” he said.
Peters said the challenge for developers is to create a connection among the residential and entertainment areas of the Old Market, a renovated Paxton and the 16th Street corridor.
Built in 1929 at a price of $1.5 Million, the building was then known as the New Paxton Hotel. Construction of the 11-Fllor, 325-room hotel was spearheaded by the late Henry Doorly, then publisher of The World-Herald.
The new Paxton was constructed on the site of the Old Paxton Hotel, which was built in 1882 and counted among its patrons Presidents Theodore Roosevelt and William McKinnely and Nebraska presidential candidate William Jennings Bryan.
A small plaque on the exterior notes the formation of the Woodmen of the World Life Insurance Society on this site in 1890.
At the time the New Paxton Hotel was built, it was Omaha’s most modern and grandest hotel. It boasted tile bathrooms and circulating cold water.
Betty Davis, executive director of the Douglas County Historical Society, said the Paxton and the Castle Hotel, which was on 16th Street near Leavenworth Street, were where wealthy cattleman stayed during the height of Omaha’s livestock industry.
But its glory faded during the past couple of decades. It became home to a Job Corps center in the late 1960’s, then became a self-care retirement home in 1975.
Paxton Manor closed May 31, 2000, because of financial trouble.
Nonetheless, the recent purchase of the Paxton and developers plans to turn around the building seem to fit in with the redevelopment of Omaha’s downtown and riverfront.
“If we have more residents downtown, maybe retail would follow,” Brodkey said. “If it becomes more office space, that’s great too. That means more jobs and bringing more people downtown.”
By Grace Shim
Omaha World Herald