State College’s Mad Mex will soon permanently close its doors. Here’s what to expect
Mad Mex Happy Valley, a local bar/restaurant and State College staple for the last 20 years, confirmed Tuesday it plans to permanently close its doors later this month because the property owner is in the midst of selling to a developer intent on building more student housing.
The likelihood of Mad Mex’s eventual close was made public in September when Chicago-based developer Core Spaces outlined a plan to demolish all of the buildings at 240 S. Pugh St. — including the Days Inn by Wyndham Penn State, Mad Mex and Brewsky’s Bottle Shop — to build a six-story, 172-unit apartment building. Because Core Spaces recently placed a deposit on the property and a deal is expected to be finalized in the coming months, Mad Mex was forced to close quickly due to the suspension of its lease.
As a result, Mad Mex’s final day is set for Nov. 28. The hotel and bottle shop are expected to continue operating until at least March 1, an official there said, although it’s possible that date could fluctuate.
“We’ve been really happy there, and we’d like to stay (in State College),” said Bill Fuller, a spokesman for Mad Mex’s parent company, big Burrito Restaurant Group. “We haven’t found a new spot, but we’re looking in that area and would like to stay there.”
He added: “It’s really sad. It’s been a long time, since we opened in 2001.”
According to Fuller, staff were informed of the change “in the last few weeks.” Some will continue working in other big Burrito locations while, Fuller added, others who declined to make a move likely won’t have difficulty finding a nearby restaurant job in today’s climate.
Because the sale is not yet finalized, Fuller clarified Wednesday — saying he was unaware Tuesday — that Mad Mex could technically return to the location by next August if the sale falls through. However, several officials said that is not expected to happen.
After all, Core Spaces has been busy in Happy Valley the last few years. In October 2019, it purchased five downtown apartment buildings and, among other projects, construction will soon start on a 12-story apartment building in the 400 block of East College Avenue.
The proposed apartment building on Pugh Street, which will contain about 500 beds and range from studios to five-bedroom apartments, will be 65 feet tall with a fitness center and rooftop pool terrace. Although the proposed apartment building will be exceedingly large, wider than 200 feet at points, the building will be made to look like multiple structures.
No retail space is planned for the new building, based on September’s presentation to State College Borough’s Design Review Board. And construction is tentatively scheduled to start next September.
The property at 240 S. Pugh St. is currently owned by Centre Hotel Associates Ltd., and the hotel is operated by Hospitality Asset Management Company (HAMCO).
“We also are excited for the community what Core Spaces has proposed for this site,” HAMCO chief operating officer Edward Tubbs said. “And we look forward to continuing to work with Core Spaces to bring this to fruition.”
Neither the property’s tentative sales price, nor potential rent for the proposed apartment building, were immediately made known. Core Spaces’ preliminary plans were created before it purchased the property, although that’s not unusual in real estate since the owner’s permission was granted ahead of time.
Based on Core Spaces’ preliminary plans, construction on the apartment building would finish up in June 2024.
This story was originally published November 3, 2021 at 5:00 AM.
