[SIZE=2]Glimcher Realty Trust (http://www.glimcher.com/) of Ohio recently paid Chesapeake $51,820,000 for several properties:

1. Nichols Hills Plaza and two adjacent parcels
2. Classen Curve
3. Triangle at Classen Curve (Whole Foods center)
4. Vacant land between NH Plaza and the Triangle
5. Vacant land (old Kensington Apartments)

Chesapeake took a substantial loss on all these properties, having at least $115 million invested; they received less than half what they had paid for in purchases and improvements.

In the graphic below, Glimcher properties are shown in yellow, those still owned by Chesapeake in green and pink represents other CHK properties recently sold.


http://www.okctalk.com/images/pete/glimcher.jpg


http://www.okctalk.com/images/pete/glimcherjuly.jpg


http://www.okctalk.com/images/pete/glimcherjuly2.jpg

Gander MTN is a big box store that is usually in suburban or even exurban areas so I personally doubt that NHP/Classen Curve would be where it ends up. REI has a smaller footprint and is more upscale so it may be more likely.

REI please!

Sur La Table
H&M
Restoration Hardware
Urban Outfitters
Crate & Barrel
Container Store
REI

Yes please.

These guys are bigger money than you'd think - major art patrons in Ohio.

I think $51M is great for ALL of that property along Western.

BTW, pretty sure they plan to build condos / townhouses on the old Kensington Apartments site on the west side of Grand.

Would love to see an iPic in OKC!


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The map graphic makes it very clear how contiguous all of this is. Due to the way it developed in the past it all feels disconnected and sprawling, but it would be a fairly simple matter to redevelop in such a way that it all felt knitted together and unified. Considering the property itself AND the (rare for OKC) location near reasonably dense high-income neighborhoods (and ease of access from the rest of the metro), this is an exceptional opportunity for something very special.

Absolutely, but now it's a matter of undoing the damage done by Rand Elliott and past shortsighted developers.

Meh. I'm not sure anything Rand has done needs to be "undone". Classen Curve needs to be finished, with the buildout of the interior pad, which will cause the interior drive make much more sense and make it truly feel like the "Main Street" of that development. Obviously it needs the Gilmcher leasing touch, but I don't think you change much about it physically at this point.

The overall look and feel of The Triangle is actually nice; it can be continued north with more attention being paid to layout and interaction of the new buildings.

What I'm most interested in is how the "undeveloped land" north of and contiguous to the existing Triangle is developed, how the two are tied together, how the property on the west side of Grand develops and how it ties to everything across the street, and how NHP is tied to everything else across 63rd. I really think that is important to the success of both, but will be a challenge considering the traffic volume on 63rd and at the 63rd/Western intersection.

I think you have to tear down everything west of Whole Foods and build a pad site in front of Whole Foods to frame the intersection and maintain continuity across.

Basically what Rand did was extremely lazy, unimaginative, strip mall development. He clearly wasn't thinking of how to bridge from Classen Curve up to Nichols Hills Plaza. The Anthropologie and West Elm sites are merely "meh let's extend the strip here with parking in front to get just two more retailers in."

I don't disagree that those particularly spaces are stripmallish in layout; that is why i said "look and feel." I actually really like the buildings themselves. I just think you pick your battles. That space was partly dictated by the creek/culvert behind it, and as CC and The Triangle are limited in their ability to relate to each other at that intersection I don't think you invest that much money in fixing something with only limited potential to begin with. Now, if they acquired the land on the SE corner of Grand and Classen, maybe...

As it stands, I think you put most of your creative effort into everything north of WF/Triangle (existing) and let the success of those areas elevate the other portions.

They aren't going to tear anything down, especially the strip next to Whole Foods. They just signed a lease with West Elm in that building and the store is already under construction.

I suppose they'll take some design cues from Classen Curve and the Triangle and just build new to the north.

Yep. They didn't buy it because they wanted to tear it down.

You can't touch the historic cemetery. You can find a way to bridge Classen. Whatever is built and however this development is rescued by a capable developer, the bigger picture is made better by connecting to Classen Curve. Which we both agree, isn't as bad.

Gotta say, if I were them I really WOULD be interested in making a play for the land north of Flip's (even including Flip's, but as a patron I'd hate to see that happen). Inclusion of that parcel would really make it easy to tie the area together better visually/thematically/functionally.

Agreed!

The Pink land in that set is owned by MidFirst, no? And both of those lots are 3 story + towers? I just don't see them getting torn down to build something new.

They've got plenty of stuff in front of them to get working on for the near future. If they want to expand, I'd be more in favor of them buying out the office park south of the Grave Yard and fixing-up that mess. In fact, if they were smart, they'd buy that complex now before any of their improvements have a chance to raise the property values around them.

The Pink land in that set is owned by MidFirst, no? And both of those lots are 3 story + towers? I just don't see them getting torn down to build something new.

They've got plenty of stuff in front of them to get working on for the near future. If they want to expand, I'd be more in favor of them buying out the office park south of the Grave Yard and fixing-up that mess. In fact, if they were smart, they'd buy that complex now before any of their improvements have a chance to raise the property values around them.

Urbanized was talking about the pink property (indicating recently sold) just north of Flip's.

Right…that's what I'm saying…was that not bought by Midfirst, which would mean there's pretty much a 0% chance Glimcher could get ahold of it?

No, it wasn't bought by Midfirst. They only bought the properties along I-44, the rest of the pink properties were bought by others.

Very well then, carry on :-)

Just to add another dimension, especially as we're talking about a true mixed-use development in the works here, I wonder to what extent this neighborhood also benefits from the quiet zone. I found it really peculiar that the quiet zone goes all the way up to Britton, especially considering we were only asking for downtown and it took us years and years and years and then another decade on top of that.

I think they're far enough from the tracks to make train noise a non-factor. Besides, none of the crossings in that area are at grade until you get up by Wilshire, so they shouldn't be sounding horns in the area anyway..?

Well it's included in the quiet zone anyway, oddly enough.

I don't get it, are you objecting to having the quiet zone extend to Wilshire? It really seems like a non issue.

I don't get it, are you objecting to having the quiet zone extend to Wilshire? It really seems like a non issue.

I just don't see anyway you could get that from what he wrote?


Just to add another dimension, especially as we're talking about a true mixed-use development in the works here, I wonder to what extent this neighborhood also benefits from the quiet zone.

Either Spartan's really really bad at English or this means he thinks it's a good thing...

Well it's included in the quiet zone anyway, oddly enough.

It's included because it's already a "quiet zone." The BNSF line has no crossings from N 16th to Wilshire; inclusion in the federally designated quiet zone ensures that this already-horn free area would remain so if some crossing were to be added. Additionally, a quiet zone must be at least one mile long per the Federal requirements; the longer the designation, the better.

Ok, back to Glimcher.

I wonder when we will hear the next big tenant announcements. Ruth's Chris and Trader Joe's are apparently a strong possibility. Urban Outfitters might also be a good tenant. They are owned by the same parent company as Anthropologie so it would make sense for them to go in the same development.

A friend told me (I can't confirm) Urban Outfitters is opening in Tulsa's Utica Square so maybe they're expanding into both Oklahoma markets.

It's included because it's already a "quiet zone." The BNSF line has no crossings from N 16th to Wilshire; inclusion in the federally designated quiet zone ensures that this already-horn free area would remain so if some crossing were to be added. Additionally, a quiet zone must be at least one mile long per the Federal requirements; the longer the designation, the better.

Ok, back to Glimcher.

This is great information, I haven't actually been involved with a quiet zone as you have, so I appreciate your perspective as always. Yes, back to Glimcher.

This doesn't sound like any major development is imminent:


the company would eventually look to develop its Oklahoma City shopping centers into some type of mixed-use project.

However, right now the company is focused on selling off from $200 million to $300 million in other real estate in its portfolio, before reinvesting the proceeds into other assets.

Developer hasn't set timeline for land in Oklahoma City | News OK (http://newsok.com/developer-hasnt-set-timeline-for-land-in-oklahoma-city/article/5318808)

It sounds like they are realizing the magnitude of the scope of work needed, especially when they talk about placemaking and connectivity. This is a daunting task.

^^^^^^^

I found it especially encouraging that he mentioned "mixed use" and "sense of place," which he acknowledges that it currently lacks. It's a huge thing to get a national player and industry leader of this caliber to tackle our retail shortcomings, and this site presents an incredible opportunity to do something special. It might take a while to do it right, but I'm very optimistic about this.

The company could eventually look to develop housing or office space on the site, Lindimore said.

One distinct possibility is that they just lease up the 3 existing shopping centers than build housing and office space on the empty parcels.

When they say mixed-use, they all likely referring to the entire group of properties, not necessarily that they'll include retail in new construction.

^^^^^^^^^

Seems like an unlikely possibility though, since their first strength is retail and they likely understand the market is under-served in that area. Also, if they do housing and office, its value will be bolstered by a physical connection to market-leading retail and entertainment.

The problem they face is there is no way to bridge the three existing retail developments, so you would effectively be creating a fourth that would also be disjointed.

No one is walking from one end of Classen Curve to the other, let alone from CC to the Triangle; and NH Plaza might as well be on another planet. So you build another retail center in the middle and there is still no easy way to move between these four completely separate developments.

Their plan might be to create density through office and housing to feed the existing retail centers and concentrate in leasing those up. Still huge amount of vacancy at NH Plaza.

I hope that they do not take this approach but I'm starting to see this as an increasingly likely outcome, especially given the high demand for office space.

I think those empty areas would be prime property for upscale dense housing, maybe townhomes or patio homes. I could see a lot of Nichols Hills empty nesters wanting to downsize.

Please, please, please no more "office condos." They may be tempted given how low office vacancies are in that area, but those things have spread like the plauge in North OKC.

I'm almost certain the old Kensington Apartments site on the west side of Grand will be high-end townhomes. Have heard they have already drawn up preliminary plans.

Not sure about the remainder of the empty parcels.

I'm almost certain the old Kensington Apartments site on the west side of Grand will be high-end townhomes. Have heard they have already drawn up preliminary plans.

Not sure about the remainder of the empty parcels.

If you don't have the 80 year old NIMBYs jettisoning it like they did Aubrey's plans for the Plaza and the smaller lot development that was supposed to be developed from the estate on 63rd. They're vocal and the NH City Council is unwise enough to listen. Interestingly, I don't think a single lot has sold on the redesigned development with bigger lots.

Sold out -

Oklahoma business briefs for Sept. 17, 2014 | News OK (http://newsok.com/oklahoma-business-briefs-for-sept.-17-2014/article/5342720)

I wonder if or how this will affect their plans for Classen Curve and NHP.

At the very least, it at least partially explains why they have been moving so slowly with any new development.

They still own underutilized assets.

Well, this move kind of sucks. I had high hopes for Glimcher.

Well, this move kind of sucks. I had high hopes for Glimcher.

Not sure if it really changes too much.

Researching this a bit more:

1) Washington Prime is a spin-off from Simon, the largest retail investor and developer.
2) Washington Prime is for all their "strip centers'; i.e., everything but their enclosed malls.
3) The two Glimcher malls will go to Simon, the rest to this new entity (WP Glimcher)
4) The Glimcher CEO will remain and WPG will be located in Columbus, the current HQ for Glimcher
5) I think this just brings more resources to bear for their existing properties; more capital and more leasing power and reach

This article in the Cbus paper has some good insight that corroborates that this just raises capital for Glimcher's vision (although ignore Chris Boring who knows absolutely nothing):
Mall owner Glimcher being sold, but HQ will stay here | The Columbus Dispatch (http://www.dispatch.com/content/stories/business/2014/09/16/glimcher-being-purchased.html)

If you don't have the 80 year old NIMBYs jettisoning it like they did Aubrey's plans for the Plaza and the smaller lot development that was supposed to be developed from the estate on 63rd. They're vocal and the NH City Council is unwise enough to listen. Interestingly, I don't think a single lot has sold on the redesigned development with bigger lots.

This location is in OKC, not in Nichols Hills. It is south of 63rd, West of Grand.

Are there any updates on this? Are plans for Classen Curve and NHP currently completely stalled? How long before we start to see movement?

Nothing is stalled, these things take time, be patient. I was at their annual tenants meeting a few weeks ago, all the retail spaces are leased up, security lighting is being installed on the back's of the buildings. They will do some Christmas decorating this year, but will be minimal, next years will be bigger. They will be replacing some "worn out" landscaping in the medians and replacing it with some native varieties that are more hearty. They will also be installing power outlets in the medians so they can do better holiday lighting displays next year. Most noticeable changes to the public won't be made until 2015.

Nothing is stalled, these things take time, be patient. I was at their annual tenants meeting a few weeks ago, all the retail spaces are leased up, security lighting is being installed on the back's of the buildings. They will do some Christmas decorating this year, but will be minimal, next years will be bigger. They will be replacing some "worn out" landscaping in the medians and replacing it with some native varieties that are more hearty. They will also be installing power outlets in the medians so they can do better holiday lighting displays next year. Most noticeable changes to the public won't be made until 2015.

I assume this is all for Classen Curve, not NH Plaza?

This location is in OKC, not in Nichols Hills. It is south of 63rd, West of Grand.

Nichols Hills Plaza is in Nichols Hills.

OKCTalk - Zoe's Kitchen coming to Classen Curve (http://www.okctalk.com/content/78-zoe-s-kitchen-coming-classen-curve.html)

At first I thought this might not be the best choice for Classen Curve, but after a little thought I think it will fit in well. Glad to see another empty space taken, keep it coming!

This place will do great for lunch and will be nice to have a fast, healthy and relatively inexpensive option in the area.

On another note, I was recently in Raleigh and had brunch at this great restaurant, The Flying Biscuit Cafe, which I think would fit perfectly in this area. It's in Cameron Village which is eerily similar to the Nichols Hills, a great model of what this area could be.

Flying Biscuit Cafe - Breakfast all day, lunch, dinner and takeout (http://www.flyingbiscuit.com)
Cameron Village :: 2108 Clark Ave., Raleigh, NC. 27605 :: 919-821-1350 (http://www.shopcameronvillage.com)

On another note, I was recently in Raleigh and had brunch at this great restaurant, The Flying Biscuit Cafe, which I think would fit perfectly in this area. It's in Cameron Village which is eerily similar to the Nichols Hills, a great model of what this area could be.

Flying Biscuit Cafe - Breakfast all day, lunch, dinner and takeout (http://www.flyingbiscuit.com)
Cameron Village :: 2108 Clark Ave., Raleigh, NC. 27605 :: 919-821-1350 (http://www.shopcameronvillage.com)

They have this in Charlotte also. I am not a huge fan but I am sure it would do well in OKC. As of now though it's only in the far Southeast with Atlanta being their westernmost reach.

OKCTalk - Zoe's Kitchen coming to Classen Curve (http://www.okctalk.com/content/78-zoe-s-kitchen-coming-classen-curve.html)

The one in Norman is really tasty. Nice addition

OKCTalk - Zoe's Kitchen coming to Classen Curve (http://www.okctalk.com/content/78-zoe-s-kitchen-coming-classen-curve.html)

Not what I would have expected, but I'm sure it will do very well. I like their food, and they will probably have a nice patio, so there will be some more life in the area.