Stage Center sold
Curtain expected to raise on site's next act today
By Molly M. Fleming
The Journal Record
Posted: 06:15 PM Thursday, July 25, 2013


OKLAHOMA CITY – A building with architectural significance in downtown Oklahoma City is under contract and the sale is expected to be announced on Friday.

The Stage Center at 400 W. Sheridan is under contract to be sold, said Steve Mason, board member with the Oklahoma City Community Foundation. The foundation owns the building, and Mark Beffort with Newmark Levy Strange Beffort is representing the seller.

Beffort did not return repeated telephone calls seeking comment about the property.

The building does not have a listing price.

Mason said he could not release any further details about the sale, but he said he expects more details to be released on Friday.

Rumors have swirled that the building will be razed and replaced by an office tower, with OGE Energy or Enogex/CenterPointe Energy as the possible owner. The Journal Record was unable to confirm those rumors Thursday.

The future of the Stage Center has been in question since 2010 when the building flooded. At one point there was an effort to save the building for a children’s museum, but the project never moved forward.

The building is eligible for the National Register of Historic Places, but getting placed on the actual registry requires the approval of the owner. The Oklahoma City Community Foundation previously filed an objection to the listing, but the future owner could put the building on the registry if the person kept the building.

The Stage Center, originally called Mummers Theater, is considered historic by architectural groups because it was designed by John M. Johansen in 1970. Johansen was a student of Walter Gropius and Frank Lloyd Wright. The building received the American Institute of Architects National Honor Award in 1972. That same year, it was placed in the permanent building model collection at the Museum of Modern Art in New York City. The Central Oklahoma Chapter of the American Institute of Architects has taken a stance previously to save the building because of its architectural significance.

The building houses three theaters, one that seats 580 people, a smaller arena theater, and an even smaller area that serves as a cabaret, kitchen and office space.


Read more: Stage Center sold | The Journal Record (http://journalrecord.com/2013/07/25/stage-center-sold-real-estate/#ixzz2a6vSatDq)

Announcement tomorrow ?

The Journal Record was unable to confirm those rumors Thursday.

Can't or won't? lol

Could this be Tower Eve??

It's suddenly gone very quiet out there... Possibly the calm before the storm.

Was there this much hype prior to the Devon announcement?

20 stories.

Downtown Oklahoma City to get new tower | News OK (http://newsok.com/downtown-oklahoma-city-to-get-new-tower/article/3866102)

I would be surprised if this were announced in a Friday 5pm news dump, but OG+E may actually be trying to avoid too much publicity here, as the majority of people probably don't understand that they need office space and new facilities are very efficient (cost savings).
That is what happened in the early 80's. Benham-Blair & Affiliates (at that time) had a tower designed for OG+E that was supposed to start around 1980 (I think) but after publicity and scrutiny they pulled it off the table. The drawings were still in one of the vaults 15 years ago.

20 storys? On The bright side, Devon first stated 37 for The Devon tower!

So.... All predictions wrong? Downtown Oklahoma City to get new tower | NewsOK.com (http://m.newsok.com/article/3866102).

Downtown Oklahoma City to get new tower | News OK (http://newsok.com/downtown-oklahoma-city-to-get-new-tower/article/3866102)

So wait...it's a spec tower?

Kerplunk?

What was the confidence of this being an OGE tower? .... Or, 2 towers after all?

The Oklahoma City skyline is set to grow again with plans set to build a high-rise tower topping 20 stories on the current site of the long-troubled Stage Center theater.

Stage Center, built in 1970 and considered one of the most architecturally unique structures in Oklahoma, is set to be torn down to make way for a high-rise office tower. The property is set to sell Friday to developer Rainey Williams.

Rainey Williams, president of Kestrel Investments is set to buy the 3.15-acre property Friday morning from the Kirkpatrick Center Affiliated Fund of The Oklahoma City Community Foundation for $4.275 million.

The tower, which will front the Myriad Gardens to the east and the new John W. Rex Elementary to the west, will likely include retail and restaurants on the ground floor and space for an anchor tenant and potentially other occupants on the remaining floors.

Williams said that the tower does not have a lease signed yet with an anchor tenant, but that negotiations are ongoing. Williams also could not say whether he might seek tax increment financing or other public funding to assist in the development of the tower or an adjoining parking garage.

“Our goal is to in 90 days be able to announce the anchor tenant and release the preliminary site design work,” Williams said. “We are very excited to announce our plans for this property, which we think has tremendous potential.”

Kerplunk?

Lmao.

Well, that was unexpected.:redface:

I am willing to bet this will NOT be the only tower to be announced within a short period of time! Also while this article states only 20 floors, it will be taller than that!

What if they don't line up an anchor tenant in the next 90 days? Then what?

I bet what happened is that OG&E and/or Enogex/CenterPoint weren't quite ready to go but they had to close on the property or risk losing it.

One or both are probably the "anchor" he's talking about.

I know there was a last minute scramble (hence the rumblings about a delay in announcing) and perhaps they just aren't ready to provide details.


Something certainly seems to have changed very late here.

Something about this is not sitting right with me. Spec office towers are far from a sure thing.

There is something very "Cotton Exchange" about this at first blush.

Something certainly seems to have changed very late here.

Could that be the MLP choosing Houston? 20 stories seems much different than the 35-40 stories we've been hearing about. Change in plans?

My guess is 20 stories wouldn't be quite as tall as the Chase tower, am I right?

I do know towers built today are taller per floor than they were in the era when the Chase tower was built. For those who know more about architecture than I do, how tall do you think we are looking at with only 20 floors?

Like I have said in previous posts, nobody should expect this all to come together in the most optimal way that has been discussed on OKCTalk.

Tomorrow should turn out to be an interesting chat...

Something seems odd by this. Pete do you know anything about the guy who is buying the property? Does he have any background relevant to this?

First of all, the article clearly says "topping 20 floors"; which means more than 20.

Secondly, the foundation that owns Stage Center has said repeatedly that they would not sell unless they felt the buyer could carry through with a plan, i.e. had financing in place, ready to build, etc.

So, I believe this is just maneuvering at the last minute because OG&E and/or E/C weren't ready to go public with their plans. At the same time, the foundation was not going to continue to carry that property indefinitely, as they had put in on the market some time ago.

At least 20 stories.

Something about this is not sitting right with me. Spec office towers are far from a sure thing.
Frost Bank Tower in Austin was a spec tower and some thought it was too tall, it was fully pre-leased before completion.

Remember that Continental used a real estate developer as a front for their purchase of the old Devon building until they were ready to announce their move.

i am willing to bet this will not be the only tower to be announced within a short period of time! Also while this article states only 20 floors, it will be taller than that!

keep hope alive. 2015...... Or bust:)

Also, maybe using a developer is how OG&E plans to get around any controversy about demolishing Stage Center or for that matter, building an expensive new HQ.

Can't imagine who else would be an anchor tenant in a building that size.

Also a PR angle... You have people who no matter what will be opposed to this because of the stage center. And that is understandable, by purposely aiming low you have a greater chance of pleasing the opposition when it turns out to be a much greater development than what was initially proposed.

It kind of fits into Steve saying that after the first tower is announced, Mystery Tower II would start immediately, no? This is one noone was expecting and if its a spec tower - we know that either OGE or Enogex/Centerpoint is MT2.

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Quiet in here....

And who the heck is Rainey Williams??

He was/is on the Board for the OKC Chamber (telling in itself) but can't find anything about Kestrel Investments and certainly don't know of anything he or his company has developed.


I don't believe for a minute that he and some completely nebulous plan without a firm commitment for financing and tenants would be chosen to demolish Stage Center and then hope for the best. Completely contrary to the criteria established by the foundation and everything we've been hearing for months.

Online forum drama

And who the heck is Rainey Williams??

I believe he's on the Board for OPUBCO but can't find anything about Kestrel Investments and certainly don't know of anything he or his company has developed.


I don't believe for a minute that he and some completely nebulous plan without a firm commitment for financing and tenants would be chosen to demolish Stage Center and then hope for the best. Completely contrary to the criteria established by the foundation and everything we've been hearing for months.

In steve's video, he said Mr. Williams bought and redeveloped BOK plaza and a parking garage. Steve also said that his father was friends with Dean A. McGee... not much to make one think that he isn't a front for a larger operation.

Maybe he had to purchase so that when he's 'looking' for an anchor tenant, OGE can say that they really need new digs - but they would need it at least 40 stories. Then they can magically produce a rendering that they had an architect mock up. :)

Here's his bio:

Mr. G. Rainey Williams, Jr., has been the President of Marco Holding Corp., since 1988. Mr. Williams serves as Treasurer of Oklahoma State Fair, Inc. He served as President of Oklahoma Health Center Foundation from 1996 to 1997. He served as Secretary and Treasurer of United Way of Metro Oklahoma City from 1993 to 1995. He also served as Treasurer of Casady School from 2001 to 2002 and also as its Secretary from 2003 to 2004. He has been a member of the Senior Trust Committee of BancFirst Trust and Investment Management since 2000. He also serves on the board of managers of American Fidelity Dual Strategy Fund, Inc., Benham Investment Holdings, LLC and American Fidelity Variable Annuity Fund A. He serves as a Director of Y.M.C.A. Retirement Fund - New York. He serves as a Director of OGE Enogex GP LLC, the General Partner of OGE Enogex Partners L.P. He is Member of the Advisory Committee at Startup Capital Ventures. He has been a Director of BancFirst Corporation since 2003 and i2E, Inc. since November 2004. He serves as a Director of BancFirst, a subsidiary of BancFirst Corporation. Mr. Williams was an associate attorney for McAfee & Taft. He served as a Director of Mustang Fuel Corporation from 1996 to 2003, Casady School from 2001 to 2002, Oklahoma Health Center Foundation from 1996 to 1997, YMCA of Greater Oklahoma City from 2005 to 2006 and Oklahoma City Chamber of Commerce from 1995 to 2001. He is a member of BancFirst Corp.'s Senior Trust Committee and served as an Advisory Director from 2000 to 2003. He attended the University of Oklahoma College of Law where he received Juris Doctor degree. He attended Southern Methodist University and received a B.B.A. degree in Finance.

He serves as a Director of OGE Enogex GP LLC, the General Partner of OGE Enogex Partners L.P.

And we have our link!

I too am somewhat disappointed in what is currently apparent about this tower. I too was hoping for a 40 story tower announcement, with splashy graphics and an anchor tenant. I was hoping that construction would start on Monday.

But I have to admit that I'm chuckling a little bit to myself. 99+% of Oklahoma City is going to wake up tomorrow and be surprised, and many will be ecstatic about what this means for our downtown area. Maybe those of us (myself included) that troll this board should take a deep breath, step back from hyperbole and think about something else for a little while. What happens will happen, and maybe we'll be pleasantly surprised. For now, I'm going to bed.

Maybe he had to purchase so that when he's 'looking' for an anchor tenant, OGE can say that they really need new digs - but they would need it at least 40 stories. Then they can magically produce a rendering that they had an architect mock up. :)

That would match how Cuyahoga County (Cleveland) is building it's new HW

Williams is a good guy and will do a good job, and prefers the background, but he'll now forever be known as the guy who tore down Stage Center. Give him a chance.

My sources say there are a lot of sources with egg on their face right now

Williams is a good guy and will do a good job, and prefers the background, but he'll now forever be known as the guy who tore down Stage Center. Give him a chance.

What is his background in real estate development?

I too am somewhat disappointed in what is currently apparent about this tower. I too was hoping for a 40 story tower announcement, with splashy graphics and an anchor tenant. I was hoping that construction would start on Monday.

But I have to admit that I'm chuckling a little bit to myself. 99+% of Oklahoma City is going to wake up tomorrow and be surprised, and many will be ecstatic about what this means for our downtown area. Maybe those of us (myself included) that troll this board should take a deep breath, step back from hyperbole and think about something else for a little while. What happens will happen, and maybe we'll be pleasantly surprised. For now, I'm going to bed.

I wonder if announcing it this way is being done on purpose for OG&E's PR. Think of the hate they would get if they came out tomorrow and announced an extravagant 40 story tower with their name on it. When a utility company makes a major investment in something like a tower, the public doesn't take it in quite the same manner as if a bank or tech company was building it.

As I pointed out earlier (and may have been missed), Rainey Williams is on the Board of Enogex.

And again, remember that Continental used a real estate developer as a front for their purchase of the old Devon building and hid behind him for six months until they finally announced they were the ones behind the purchase.


I suspect this will he the new HQ for the Enogex/Centerpoint entity and they just aren't ready to announce that, especially since it means tons of people would have to relocated from Houston.

It could also mean that OG&E may still build closer to their existing building. Steve hinted at this a couple of weeks ago.

What is his background in real estate development?

BOK Tower for one. He's very low key.

What is his background in real estate development?

He's a Vose. Old money. Discrete. Purposeful. Leaves little to chance.

very interesting Pete, certainly a lot more to this!

Before everyone drama queen's out, we know it will probably by far exceed our expectations and initial announcement. I said from Day 1 that I hope it is a horizontally long tower, versus a slender tall tower. Going horizontal makes more sense to take advantage of PRIME PARK VIEWS. If they went the length of the block, or even half the block horizontally, 20+ floors would still do wonders in placemaking and creating a nice street life surrounding the park.

Here's what I'm talking about. If someone can photoshop this building or something similar on the west end of the Myriad Gardens, it would be appreciated and I think a good visual for people to consider.

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Here's another great mixed-use example that was to be built in Hyde Park in Chicago. I think it would go well along the park, and we know it's going to end up being more than 20 floors anyways.

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Studio Gang Architects | SGA Releases Design for City Hyde Park (http://www.studiogang.net/news/updates/2012/02/cityhydepark)

BOK Tower for one. He's very low key.


BOK Tower in OKC or Tulsa? And you must mean investor, as he was a child when both of those were built.

Okay, let's back up here and take stock... This news is clearly only a very small part of the picture and while it's disappointing we don't get to see renderings of a new skyscraper, I think this may work out even better than hoped.

1. The buyer/developer is a Board member of Enogex
2. He speaks of "negotiations with an anchor tenant" and closed on the property without a signed lease
3. If it is Enogex, it would almost certainly mean the Enogex/Centerpoint entity would be headquartered in OKC; if i was only part of this new entity they wouldn't need to leave Leadership Square where they just spent over $3 million last year to build out space.
4. Mark Beffort, the broker for the sale of Stage Center, is also a principal owner of Leadership Square.
5. If the Enogex/Centerpoint entity is indeed HQ'd in OKC, that means hundreds of jobs moving here from Houston with possibly hundreds more to be added down the line.
6. OG&E will still need a building and I've said all the way along I thought they would want to separate from E/C.
7. OG&E has wanted to BUILD a tower for several years, so again this site doesn't seem to fit, unless Williams is just a proxy for them to later emerge as the true buyer (ala Continental)
8. Steve hinted that there may be a second tower built near the current OG&E building and we all know the NW corner of Hudson and RS Kerr would suit them well.
9. If all this comes to pass, it would make a lot of sense, especially since the Stage Center site is too high profile and controversial for OG&E.
10. We know the Enogex/Centerpoint name and headquarters will be named in the near future, because they've stated publicly they want to do an IPO before the end of the year. So Williams' promise to reveal more in "90 days" would fit into this timeline.

So what does everyone make of this statement by Mick Cornett:


"Mayor Mick Cornett is predicting Stage Center won't be the last older building threatened with demolition as downtown development continues at a pace unmatched in the past half century.

“Intellectually we understand it, but emotionally, it is harder to let it go,” Cornett said. “The larger context, I'm afraid, is that we are entering an era here where we have to swallow hard and consider what buildings may have to go to make way for new development.”

Sounds like he may be prefacing the possible demolition of buildings on the preftakes block for something greater...

I agree Metro. I mostly only care about the first 20' of height anyhow.

Another thought...

We all know Devon just formed their own MLP and is rapidly running out of space in their tower.

Could this new development house both Enogex/Centerpoint and Devon's MLP? And then Devon could help develop the Preftakes block into parking and other uses?

So what does everyone make of this statement by Mick Cornett:



Sounds like he may be prefacing the possible demolition of buildings on the preftakes block for something greater...

Could also be talking about the just announced plans to demo the Film Exchange building.

Excellent summary, Pete. This is indeed very good news for OKC!

Excited to see how this plays out!

There is very little chance that Devon's MLP will share office space with a competitor. They would likely wait until they figure out how they want to grow the MLP and then decide, and build their own tower.

There are other options of companies needing office space. There are many small oil and gas companies downtown that are exploding in growth that will need space soon. RKI is one example. In the last year they have doubled in size and are hiring like crazy.