MERCED — A little more than a year after Fresno-based Bitwise Industries collapsed, the building it once occupied in the heart of Merced is getting a new tenant.

Victor A. Patton

The Merced FOCUS

Officials at UC Merced have confirmed the university is taking over the lease of the building at the southwest corner of M and West Main streets, effective later this month.

A university spokesperson told The Merced FOCUS the 1635 M St. location will be used to house part of its UC Merced Extension and Continuing Education Program.

Extension programs typically offer classes to individuals without having to apply for admission to a formal university degree program. Many also offer opportunities for working professionals to expand their skill set through workshops and courses.

University officials expect to teach its smaller extension and certificate courses at the former Bitwise building.

Larger courses will continue to be taught at the university’s Downtown Center, which is just a few blocks away near city hall.

Related Story: Critical Report on Merced City Schools Details Issues Next Superintendent Might ...

Building Was Used as a Co-Working Space

When Bitwise Industries opened the 1635 M Street building in Merced in 2022, the location was heralded as a place that would offer affordable workplace tech-based education classes, while also being a hub for startups and burgeoning businesses.

On the surface, it seemed to fill an important void. It was a convenient place for remote workers who needed a place to set up their laptops and do business.

Many small businesses – including The Merced FOCUS – rented the location for office space on a hybrid, as-needed basis. It was common to see students and others use the space for a place to concentrate on coursework.

But Bitwise collapsed in May last year after co-founders Jake Soberal and Irma Olguin Jr. announced all 900 of its employees were getting furloughed.

Chapter 7 bankruptcy followed, along with federal criminal charges for its co-founders, who allegedly defrauded investors out of $100 million. Olguin and Soberal have reached a plea agreement, court records show.

Up until last month, the 1635 M Street building was still being used as a coworking space, although most of those businesses relocated since.

Construction workers have also been busy removing traces of the building’s former identity, painting over the Bitwise Industries logos, and removing parts of the office interior.

Related Story: A UC Merced Medical Program Is Slowly Taking Shape. Why California Wants More ...

University Increasing Presence Downtown

The move is another example of UC Merced expanding beyond its core campus, which is just outside Merced’s northern city limits.

Back in 2018, the university opened the $45 million Downtown Center, which houses external relations and other employees, in addition to extension classes.

The university also has a center in Fresno and a location at the Castle Commerce Center in Atwater.

Merced Mayor Matt Serratto said he’s happy to see the M Street space getting a new life, particularly given its proximity to prime downtown locations.

Serratto said the move also shows the university recognizes the need to be visible across town. “It’s great to have that space filled,” Serratto said. “We applaud them for their effort.”

The building is across the street from the historic El Capitan Hotel, which just a few years ago underwent a multi-million dollar restoration.

Related Story: Merced Mall Under New Ownership, Selling for $22.5 Million. Here’s Who ...

It’s also within walking distance from The Mainzer theater and The Tioga apartments, both art deco-style gems that also underwent significant revamps.

University officials said they expect to begin occupying the building in August and September, with smaller extension classes beginning in early 2025.

About the Author

Victor Patton is editor-in-chief of The Merced FOCUS, a nonprofit newsroom covering the San Joaquin Valley.