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Two brothers have struck a £1 million deal to take over a former bank months after plans for a luxury restaurant were shelved.
Teesside property developers Jack and Tom Atha have secured Commerce House, the former Kalinka nightclub, and nearby land on Wood Street in Middlesbrough for a seven-figure sum.
The pair, founders of Atha Developments, want to create a new office development at the Exchange Square site with 40 suites, co-working areas, and meeting rooms for 400 people.
Part of Commerce House has been home to offices since 2018 - and the brothers want to upgrade the space and add a daytime coffee shop turned relaxed evening wine and cocktail bar.
The deal also includes land on Wood Street, which the duo see as a potential opportunity for future residential development in the town centre.
Commerce House in Middlesbrough (Image: THE NORTHERN ECHO)
The Grade II-listed building, originally built in 1872 for the York City and Banking Company, was originally two properties that were joined together in the mid-twentieth century.
It was maintained as a bank for most of its life with the Teesside Chamber of Commerce and the North East Chamber of Commerce taking over from the mid-1930s until its sale in 2015.
The former Kalinka nightclub section of the building has been run under many names over the years, the most popular being Uncle Alberts, Vienna and Wicker’s World.
Teesside brothers Jack and Tom Atha at Commerce House in Middlesbrough (Image: Tom Banks)
Jack and Tom said the old nightclub will become a flexible co-working space with hot desks, workstations, snugs, podcast studios, event spaces, and 20 private office suites.
Five offices, ranging in size from four to 12 desks, are currently available to let.
Jack and Tom Atha said: “This project has been a big commitment for us, both in terms of time and investment, and there’s a real sense of achievement in getting it over the line.
“Our ambition is to create one of the most exciting places to work in central Middlesbrough - somewhere with real energy, a strong sense of community and a different feel to the traditional office environment.
Office space at Commerce House in Middlesbrough (Image: Tom Banks)
“We’re excited to be working with some incredible local companies to bring that vision to life.
“There’s still a lot of work ahead, but we’re looking forward to getting started and turning our plans into something tangible.
“We want to bring together great workspaces and social spaces to create somewhere businesses are proud to call home.”
Commerce House in Middlesbrough (Image: THE NORTHERN ECHO)
The brothers, known as Atha Property Twins, founded Atha Developments in 2011 and have since built a £16 million private property portfolio.
Their latest project saw them invest £3.7 million in Dorman House on Linthorpe Road, transforming the building into 55 student apartments.
Commerce House was first touted to become The Muddler restaurant in 2022.
The 100-seater restaurant would have featured a private dining space in the building’s green dome, a cocktail bar, and an outside mezzanine.
But despite works even getting underway on the interior of the building, the project went quiet - and Danieli Group chief executive Neill Winch confirmed the plans had been shelved in April.
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It came in the same week that plans for The Muddler in Sunderland were thrown out.
Danieli Group chief executive Neill Winch said: “Unfortunately the rapid growth and demand for our Stack brand has meant that we have not been able to commit to our initial plan to open a branch of The Muddler in Middlesbrough.
“We have a number of proposed new Stack openings around the country this year and this is where we have had to channel our resources.”