I guarantee K&G uses that space to make a full service beer and liquor section of their store.
Smart move, IMO. Seems that there's some rejuvenation going on around there. Stopped into a couple bars the night before the Tulsa game, and they were looking a LOT nicer than my day. Mickey's in particular. That place looked great on the inside. Big Shots, where Element used to be is an upgrade over that place too.
I'd like to see Campustown be revitalized without going to some dumb plan that includes a bunch of retail and office space that will never get used. It needs work, but it needs to stay an entertainment district, period.