Not so relaxing: Canebrake may be a tough sell

By: Molly M. Fleming//The Journal Record//March 8, 2016

The guest services building at The Canebrake at Fort Gibson Lake. (Courtesy photo by Shane Brown)

WAGONER – Selling a place where people once went to unwind has not been a relaxing experience for NAI Sullivan Group owner and broker Bob Sullivan.

Sullivan and his team are marketing plans to sell The Canebrake, a 64-acre resort, restaurant and spa center that closed suddenly in January. It’s on the west side of Fort Gibson Lake.

When the company first listed the center about six months ago, it was still operating. Sullivan said he had to be cautious when listing information online because he didn’t want word getting out. The facility ostensibly closed for the season Oct. 1, 2015, but announced in January the permanent shutdown.

Once the property closed, Sullivan and his team got more creative.

“We spent the first 30 days figuring out what it was,” Sullivan said. “It’s such a massive project.”

The Canebrake dates back to 2007 ,when the Yoga Barn opened. In 2014, owners Sam and Lisa Bracken spent $2.4 million renovating 10,000-square-foot horse stalls into a restaurant, boutique and massage therapy rooms. In addition, 16 hotel rooms were built. But in January 2016, an investor backed out and the Brackens closed the facility indefinitely.

University of Central Oklahoma real estate professor David Chapman said he wonders why an investor was needed in the first place. He said it could be a sign that it didn’t have good cash flow. Based on his estimates, the property has about $40,000 in debt per month.

“They don’t have very many rooms,” Chapman said. “(In order to get money), you have to get them a room, sell them a meal at the restaurant, drinks at the bar, and a spa experience. For a broker, they are going to have to be creative on this deal to find a client.”

Sullivan is marketing the facility as a wellness/treatment center, after considering several other options. He said the center would have income because insurance companies pay for substance abuse treatment. The location would be a positive to a wellness center developer.

“The thing that hurt the Canebrake so much, by being such a remote property, can then turn out to be a huge asset,” Sullivan said.

Other possible uses for the facility include a boutique hotel, a corporate retreat center, a retirement center or a personal family compound. He said he’s had some interest from a national chain with resorts in Missouri. He’s also contacted Cherokee Nation.

“We have several opportunities here,” he said. “Some people are looking for someone to partner with them. That is certainly an area we’re exploring.”

The facility has a $5.4 million price tag. Chapman said the listing price is high, at $294 per square foot and $81,790 per acre.

“It’s a difficult deal,” Chapman said. “I always thought we were really lucky that someone did that deal here. In the end, I don’t know if it’s operationally feasible.”

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