OKCTalk has learned that the entire complex is under contract to an out of state buyer and is set to close on December 31st. They hope to start a comprehensive renovation early next year.
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The purchase price is unknown at this point but we had previously learned the current owner had received multiple bids over $20 million.
First National Center is actually three separate structures that run between Broadway and Robinson on the south side of Park Avenue:
- The Tower. Built in 1931 and contains all the great art deco architecture including the amazing Great Banking Hall; 33 stories.
- Center Building. Constructed in 1956; 14 stories.
- East Building. Built in 1974; 14 stories.
Another important element is the First National Arcade that runs through the center of the ground floor of all three of these buildings, with retail space on either side. As recently as the mid-80's this long tiled corridor was home to several upscale clothing stores and other retailers. More recently, it has been featured primarily service-based tenants.
The new buyers plan to completely renovate the historical Tower into a hotel with some residential units as well. The amazing Great Banking Hall (shown below) will be used as a lobby.
The Center Building will be demolished in favor of a large parking structure. At one time the First National Complex also included the parking garage to the immediate south, but under previous ownership it had been sold off creating a parking deficit that has hampered the development.
The East Building will be largely untouched while the other two structures are emptied and completely reworked. Although the complex has a high degree of vacancy, tenants with existing leases will be offered the opportunity to relocate to this section.
The Arcade will also be preserved, although reworked as a part of the redevelopment process.
The property is currently owned by a group headed by Leon Neman, a prominent textile importer and real estate investor in Los Angeles. Neman acquired the property from Aaron Yashouafar in 2012 for $5.3 million. Yashouafar, also from Los Angeles, had purchased the complex in 2006 for $21 million; an amount that seemed extremely high at the time.
Yashouafar announced ambitious renovation plans that went largely unrealized. A fair amount of asbestos abatement in the newer sections was accomplished but the property eventually fell into foreclosure proceedings that Yashouafar managed to stall many times before ultimately selling to Neman.
Early this year Neman began soliciting offers through a local real estate broker and several interested parties flew to Los Angeles to meet with him in person.
Cathy O'Connor with the Alliance for Economic Development has previously stated that a critical part of this project would be putting together a substantial package of local and federal incentives and funding. O'Connor led a similar effort that was instrumental in the redevelopment of the Skirvin Hotel in downtown Oklahoma City.
This is a developing story; we'll keep you posted as more information becomes available.
