And it would be far more accurate to call it "widely-rumored financial inducements" rather than "widely-reported." So far as I know, such rumors are nothing more than totally unfounded gossip.

Alison Oshel (the person in charge of recruiting new retail tenants for the chamber of commerce) was quoted as citing Aubrey McClendon's generosity as a key factor in luring Whole Foods and Anthropoligie.

And anyone in the commercial real estate field will tell you it is widely known CHK has given very strong financial inducements to virtually all the tenants at Classen Curve in the form of free build-outs, and free and/or drastically discounted rent. When I was in town a few weeks ago, I stopped and chatted with some of the tenants there and a few admitted they had received big incentives but did not want to provide specifics or provide any sort of statement on the record.


The first tenants at Classen Curve opened in early 2012, so we are closer to 2.5 years of completion.

They are currently only 28% vacant but that number is over 42% if you exclude Balliet's and the restaurant deals that were in place before opening.

Alison Oshel (the person in charge of recruiting new retail tenants for the chamber of commerce) was quoted as citing Aubrey McClendon's generosity as a key factor in luring Whole Foods and Anthropoligie.

And anyone in the commercial real estate field will tell you it is widely known CHK has given very strong financial inducements to virtually all the tenants at Classen Curve in the form of free build-outs, and free and/or drastically discounted rent. When I was in town a few weeks ago, I stopped and chatted with some of the tenants there and a few admitted they had received big incentives but did not want to provide specifics or provide any sort of statement on the record.


The first tenants at Classen Curve opened in early 2012, so we are closer to 2.5 years of completion.

They are currently only 28% vacant but that number is over 42% if you exclude Balliet's and the restaurant deals that were in place before opening.

Here is the quote I imagine you were referring to and the question she was responding to. It's open to pretty broad interpretations.

"Why is Oklahoma City proving to be the exception in new retail development when so much of the rest of the county is stagnant?

A: The timing with the Horizon Group is good. They started thinking about this in 2007 when things were on the rise. And there were only two or three states without an outlet mall. But we also have the story of growing jobs, the economy, and we have the benevolence of Aubrey McClendon bringing retailers into Classen Curve that other developers might not have been able to bring in."

Incentives, including build-outs, for new tenants are not especially unusual in the commercial real estate field are they?

We're a lot closer to 2 years than we are to 4.

Your last line is hilariously ridiculous. I guess we could call it 100% vacancy if we exclude all of the signed tenants who have occupied space. What sense does it make to exclude Balliet's and the restaurant that signed deals before opening?

His stat makes sense to me. If Classen Curve was such a great place why have they only leased out the remaining 58% of vacancies since the opening.

A more interesting question is if Classen Curve is sustainable at all without the subsidies.

Here is the quote I imagine you were referring to and the question she was responding to. It's open to pretty broad interpretations.

"Why is Oklahoma City proving to be the exception in new retail development when so much of the rest of the county is stagnant?

A: The timing with the Horizon Group is good. They started thinking about this in 2007 when things were on the rise. And there were only two or three states without an outlet mall. But we also have the story of growing jobs, the economy, and we have the benevolence of Aubrey McClendon bringing retailers into Classen Curve that other developers might not have been able to bring in."

Incentives, including build-outs, for new tenants are not especially unusual in the commercial real estate field are they?

We're a lot closer to 2 years than we are to 4.

Your last line is hilariously ridiculous. I guess we could call it 100% vacancy if we exclude all of the signed tenants who have occupied space. What sense does it make to exclude Balliet's and the restaurant that signed deals before opening?

I didn't mean any of my information to be argumentative, just informational.

And in the commercial real estate industry, there is always a distinction made being speculative space and that pre-leased. There is also a distinction drawn between anchor tenants and others.

And by the way, the 42% vacancy number does not exclude all restaurants and food service; just those deals that were signed in advance of the center opening. Since CC opened, they have actually petitioned the city to change the maximum amount of restaurants because they could not find enough retail tenants and thus singed a lease for another Tucker's and will no doubt be adding more.


And yes incentives are common but from my understanding, those provided at Classen Curve are way beyond what is typical in the market place which is why I raised the issue.

And yes incentives are common but from my understanding, those provided at Classen Curve are way beyond what is typical in the market place which is why I raised the issue.

Not to mention that incentives from an oil & gas firm to retailers to locate in a shopping center designed by their pet architect makes this unique in almost a bizarre way. A CEO that should be busy taking care of his energy company on the floor with a tape measure is almost comical to picture. And we wonder why there's problems at CHK - gas prices or not.

His stat makes sense to me. If Classen Curve was such a great place why have they only leased out the remaining 58% of vacancies since the opening.

First, I didn't say it was "such a great place", only that it is not fair to judge it a failure for being "only" 67% leased, after being opened less than 2 1/2 years (not counting the Triangle, which would increase the percentage).

It's a tough retail leasing market, folks. See, e.g., the Shops at Park Lane in Dallas, which has been open nearly 3 1/2 years and still has lots of vacant retail space. See, also, West Ave in Houston, which has been open approximately as long as Classen Curve and still has a bunch of vacant space.

I've said all the way along that I thought Classen Curve would work much better as a restaurant location than for retail.

And while it has been a tough national retail environment, remember Classen Curve (excluding the Triangle) has specifically targeted only local retailers, and the economy in OKC has been fantastic during this period. You could argue it's been the best possible time to try and lease space given those parameters.


I am by no means saying I think CC is a failure but I would say it's appeal for pure retailers is questionable and I would be very concerned about it's viability if regarded as an actual investment rather than what seems to be a heavily subsidized amenity for Chesapeake employees.

I've tracked all the real estate purchases and building permits sunk into CC thus far (with more expansion on the way) and that number is already north of $21 million, excluding the Triangle portion. Most of that money was sunk 4-5 years ago.

You arm chair quarterbacks make me tired. You talk of what Aubrey does for his own account, what about focusing what he does for his employees and fellow citizens of Oklahoma City. If you all are so smart, why is this blog not about you. If you could of, you would have...but you haven't. Give Aubrey some credit for his vision and risk taking for the state, city, his neighborhood and employees. While you talk about how you would do it and chase after his moves, he has done it and done it well without resorting to consulting you for your opinion. Always one step late and then want to inject how you would have done it. I for one applaud Aubrey and his vision. Better here than in Houston, Dallas or Austin! So let's continue to feed the negative press and maybe the Rockets can play in Chesapeake Arena in Houston.


YES!! I am a huge Aubrey fan. He loves this city and state, his investments demonstrate that. We are fortunate we have visionaries like Aubrey McClendon remaining in Oklahoma and trying to raise the bar rather than leaving for Dallas/Houston. Some posters on this board simply amaze me.

YES!! I am a huge Aubrey fan. He loves this city and state, his investments demonstrate that. We are fortunate we have visionaries like Aubrey McClendon remaining in Oklahoma and trying to raise the bar rather than leaving for Dallas/Houston. Some posters on this board simply amaze me.

I don't think anyone here is saying what he has done for the city has not been great. They are saying he is a tremendous liability to the city. He provided so much that wasn't really his to provide, and now that the city is used to the economic impact of CHK, it will hurt if/when they start cutting back more.

I don't think anyone here is saying what he has done for the city has not been great. They are saying he is a tremendous liability to the city. He provided so much that wasn't really his to provide, and now that the city is used to the economic impact of CHK, it will hurt if/when they start cutting back more. What will really hurt if CHK goes bankrupt or sell the entire operations to out of state owners who will then move it to Houston or Dallas. Once again, my hometown will lose out. Did OKC really learn their lesson from Penn Square Bank? One may be thinking, "What does this have to do with CHK"? It is called lessons that should have been learned from the oil bust of the 80"s and that OKC is till very highly dependent on the Oil and Gas Industry. Anyone that says that is not the case, is in denial of the fact. You never put all your eggs in one basket.

YES!! I am a huge Aubrey fan. He loves this city and state, his investments demonstrate that. We are fortunate we have visionaries like Aubrey McClendon remaining in Oklahoma and trying to raise the bar rather than leaving for Dallas/Houston. Some posters on this board simply amaze me.

Aubrey has done great things for the city, but there are legitimate reasons why people are concerned with him. To be amazed that his flaws are addressed (especially when they can have huge implications for OKC) shows a blind dedication that is equally amazing.

YES!! I am a huge Aubrey fan. He loves this city and state, his investments demonstrate that. We are fortunate we have visionaries like Aubrey McClendon remaining in Oklahoma and trying to raise the bar rather than leaving for Dallas/Houston. Some posters on this board simply amaze me.

I am constantly disturbed by the willingness of people to turn on Aubrey. But I also think we can agree that good corporate governance of quite possibly our city's most important private employer is definitely in the city's best interest.

I was out on the track on campus today and I saw they were putting in the frames for the windows in the building directly east of it. It also looks like the facilities north of the park are coming along pretty well.

I was out on the track on campus today and I saw they were putting in the frames for the windows in the building directly east of it. It also looks like the facilities north of the park are coming along pretty well.

When you were on the track could you figure out what they are building on the roof of building 1? I can't figure out how that structure they are building will keep the elements out.

I've said all the way along that I thought Classen Curve would work much better as a restaurant location than for retail.

And while it has been a tough national retail environment, remember Classen Curve (excluding the Triangle) has specifically targeted only local retailers, and the economy in OKC has been fantastic during this period. You could argue it's been the best possible time to try and lease space given those parameters.


I am by no means saying I think CC is a failure but I would say it's appeal for pure retailers is questionable and I would be very concerned about it's viability if regarded as an actual investment rather than what seems to be a heavily subsidized amenity for Chesapeake employees.

I've tracked all the real estate purchases and building permits sunk into CC thus far (with more expansion on the way) and that number is already north of $21 million, excluding the Triangle portion. Most of that money was sunk 4-5 years ago.

All fair statements. (Although I'm not sure that leasing primarily to local retailers should have made it so much easier as you suggest; even though the economy has been great in Oklahoma City, I suspect getting financing for retail stores has still been very difficult.)

Another note: Many recent retail developments in other cities have found themselves leasing to far more restaurants than they had planned, even in cities with similarly strong economies (e.g. Houston and Dallas).

It looks they are putting steel framing for the roof above the building to keep the elements out.

All fair statements. (Although I'm not sure that leasing primarily to local retailers should have made it so much easier as you suggest; even though the economy has been great in Oklahoma City, I suspect getting financing for retail stores has still been very difficult.)

Another note: Many recent retail developments in other cities have found themselves leasing to far more restaurants than they had planned, even in cities with similarly strong economies (e.g. Houston and Dallas).

Keep in mind almost all of these retailers were already in business elsewhere and that CHK for the most part paid for their build out. Not sure much financing was needed.

Also, while the national economy has recovered, that hasn't seemed to help the retail leasing at CC.


I just don't think it works very well for retail tenants, independent of national or local economy issues.

looks like CHK was a few less buildings the former exogex building and the tower next door are now owed by Access Midstream partners the new name for the former chk subsidiary http://newsok.com/former-chesapeake-subsidiary-unveils-new-name/article/3695263

The assessor's site shows those buildings are still owned by Chesapeake Land Co.

If they were sold, it will be very interesting to see what they paid for them in relation to what CHK had paid just a year ago.

When working out on the central park, noticed glass was going in on the south side of building one.

CHK is putting up two new signs today on the Atrium Towers. In the background you can also see the new parking lot being poured.

2544

They are seriously repouring a parking lot? The amount of money they spend is crazy....

They completely tore out a relatively new asphalt lot and put down concrete. They've been working on this for months.

They own the building immediately west too and since this aerial have completely replaced the asphalt with concrete there as well:

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

Aubrey probably owns the concrete company...

It didnt even seem like a day after they acquired the Caliber Center that they had the turf tore up and were redoing the irragation system and installed new sod. Obviously things havent changed that much over there.

I work in the north tower and have been taking some pictures as they've been working. Here is an album of some of the pics.

http://goo.gl/BIeif

Actually they only replaced the parking lots in front of and behind that west building with concrete. The parking lot between the Atrium towers and that building west is still asphalt. According to the plans they've sent us, that will be replaced when they merge it with the parking lot directly west of the atrium towers. I've attached the map they sent us back in July on their plans for the parking lots and how they'll be merged.

2550

From today's (9/24/2012) Journal Record:

"Although Chesapeake Energy Corp. is selling off billions of dollars in assets this year, the company continues to buy up real estate around its ever-expanding campus in northwest Oklahoma City.Over the past year, a shell company called Property Development Capital LLC has bought land, a small office building and a few houses around Chesapeake’s campus."

Pete - is this activity that you've "reported on" here, or new acquisitions?

From today's (9/24/2012) Journal Record:

"Although Chesapeake Energy Corp. is selling off billions of dollars in assets this year, the company continues to buy up real estate around its ever-expanding campus in northwest Oklahoma City.Over the past year, a shell company called Property Development Capital LLC has bought land, a small office building and a few houses around Chesapeake’s campus."

Pete - is this activity that you've "reported on" here, or new acquisitions?

I've been tracking this particular LLC since it was formed a few years ago. Recently, they stopped using Chesapeake Land LLC's and started using this one (without Chesapeake in the name), as they continued to acquire properties north of 63rd Street, now with quite of few properties east of the RR tracks. There is another LLC they've used to acquire property near 50th & Penn as I've previously noted.

I mentioned some of these buys in the the CHK Business Practices threads, as they just last month spent millions on vacant industrial land north of 63rd.

Anyone know if they acquired the motel on the SW corner of 63rd and Broadway Ext. just south of the intersection? It always was cheap looking but it looks like they are either redoing it or gutting it out before demo.

Anyone Ono if they acquired the motel on the SW corner of 63rd and Broadway Ext. just south of the intersection? It always was cheap looking but it looks like they are either redoing it or gutting it out before demo.

No, that's just a major remodel by the current owners.

Here's the full article from the Journal Record.

I knew Property Development Capital LLC was a Chesapeake entity... Or I should say I was pretty darn sure so I had been tracking/logging their purchases in a separate worksheet in my massive Chesapeake Excel spreadsheet.

It was pretty obvious by their buying pattern, the amounts paid and the fact they were using the same attorney as the registrant as they do for all their CHK LLC's. But until they started using the official Chesapeake PO Box for the address on these properties, I couldn't be 100% sure.

The numbers I had previously provided do not include Property Development Capital LLC. The total numbers just for this LLC are: 86 properties; 35.2 acres; just under $8 million paid; total assessed value of under $2.2 million.



*****************


Chesapeake land grab continues
By Brianna Bailey
Oklahoma City reporter. Contact: 405-278-2847, brianna.bailey@journalrecord.com, @briannabailey80.
Posted: 08:56 PM Friday, September 21, 2012


OKLAHOMA CITY – Although Chesapeake Energy Corp. is selling off billions of dollars in assets this year, the company continues to buy up real estate around its ever-expanding campus in northwest Oklahoma City.

Over the past year, a shell company called Property Development Capital LLC has bought land, a small office building and a few houses around Chesapeake’s campus. The company is registered to Joe Lewallen, an attorney with the Oklahoma City-based Commercial Law Firm, which Chesapeake contracts with for legal services.

At first, Property Development listed its address in property records as that of local real estate firm Price Edwards &Co.’s downtown office, but in August, it began using the same post office box Chesapeake uses for its main mailing address.

Over the past decade, Chesapeake and its affiliated companies have spent at least $359 million acquiring real estate in Oklahoma County, not including Property Development purchases.

Property Development has spent about $8 million since September 2011 to buy a little more than 35 acres of land in northwest Oklahoma City, property records show. Most of the properties it has purchased are vacant land zoned for industrial use just northwest of Chesapeake’s main campus at NW 63rd Street and N. Western Avenue. The land acquisitions are clustered around the BNSF Railway line between W. Wilshire Boulevard and NW 63th Street.

Jim Gipson, a spokesman for Chesapeake, declined to comment on the purchases or what the company’s plans might be for the properties. Ford Price, managing partner for Price Edwards, which negotiated some of the acquisitions for Property Development, also declined to comment.

In August, Property Development purchased two homes on NW 64th Street owned by James and Rena King for $1.19 million, according to property records. The homes include a dilapidated, two-story farmhouse built in 1938, according to property records, as well as a 1,000-square-foot fieldstone ranch house next door. The farmhouse has peeling paint and a sagging porch. The homes are just across the street from a five-story office building owned by Chesapeake at NW 63rd and N. Shartel.

Ben King, who identified himself as James King’s son, declined to talk about the recent sale on behalf of the family, except to confirm that the property was sold to Chesapeake. He said he did not know what the company’s plans were for the houses.

“They don’t tell us anything,” he said. “They just buy up the land.”

In March, Property Development purchased a 5,300-square-foot office building at 5617 N. Classen Boulevard from the personal injury law firm Dellumo and Crow for $1.2 million. Attorney Daniel Delluomo did not respond to numerous requests for comment. The law office continues to operate out of the building.

Property Development purchased a run-down, 1,108-square-foot white stucco house at 829 NW 68th St. The house is part of a portfolio of land Property Development bought for $1.89 million from the limited liability company LS II Land Company in April.

The house, which appears to be empty, is not far from an unfinished wine cellar that Chesapeake CEO Aubrey McClendon halted construction on in 2008. McClendon purchased and cleared a row of houses on NW 68th Street for the project, which appears to be a private endeavor of the CEO and unaffiliated with Chesapeake. Unused stacks of steel rebar and I-beams for the wine cellar project sit behind a fence at the corner of NW 68th Street and N. Classen Boulevard.

Longtime NW 68th Street resident Tina Whitworth lives directly across the street from McClendon’s unfinished wine cellar and a few doors down from the house owned by Property Development.

Whitworth said she heard Chesapeake has been trying to buy houses on her street, but has yet to be approached by the company.
“I’ve heard they have been knocking on doors around here again,” she said.

Area residents say they know Chesapeake has purchased a house in the neighborhood when the landscaping company Total Environment begins cutting the grass on a regular basis. The same landscaping company also maintains the immaculate grounds of Chesapeake’s main corporate campus.

Lewis Matula, who has lived on NW 68th Street for 12 years, said when McClendon started buying homes on the street for the wine cellar six or seven years ago, it caused some to buy houses in the neighborhood and sit on the properties in hopes of turning a profit.

“It sparked a lot of interest; people thought they were going to get rich,” Matula said.

Matula said he has not been approached by Chesapeake, but believes that it’s only a matter of time.

“I feel it’s inevitable that they will buy my home, but I don’t want to go anywhere,” he said.

OK so does anyone else get tired of seeing CHK taking buildings. They're so spread out all over creation, it's just stupid at this point. Any hope of the offices being able to coordinate well is long since gone. They've sunk so much money into this crap that there's also no way they could ever now afford to build a single building. Not to mention how much empty space they would leave around town if they did leave.

Rewind 15 years to when they were building those stupid little 3 story cottage style buildings and insert a swift kick in the pants to Aubrey.

I think they will eventually consolidate their employees but to their campus then lease out or sell most those satellite buildings.

They have two big buildings opening soon, three others under construction and a bunch more planned that will easily fit on their contiguous land south of 63rd, east of Western, west of the RR tracks and north of I-44.

They also are planning to sell even more of their energy assets next year, so they will be contracting in the near future, not growing.

Why buy all the buildings in the first place? Are they really that cramped for space for employees right now?

Yes, they had no place to put employees and were leasing space in most the buildings they bought.

Of course, it still begs the question: Why buy a building instead of just leasing? Especially since they have been paying way over the mark, they pouring in millions in improvements.

I hope they continue growing enough they'll continue to fill the space they are in plus all their new buildings on campus. As of the first of the year, they had 5,000 employees in OKC alone but it's hard to tell if that number is falling, rising or merely stabilizing.

Because they get a job incentive grant from the City, they have to report their employee numbers every year and that next report should be very telling.

I think they will eventually consolidate their employees but to their campus then lease out or sell most those satellite buildings.

They have two big buildings opening soon, three others under construction and a bunch more planned that will easily fit on their contiguous land south of 63rd, east of Western, west of the RR tracks and north of I-44.

They also are planning to sell even more of their energy assets next year, so they will be contracting in the near future, not growing.

I wonder about the planned buildings for the future. I think they will hold off on breaking ground on future buildings.

I wonder about the planned buildings for the future. I think they will hold off on breaking ground on future buildings.

You would think so but they continue to buy land and spend a ton of money on existing structures.

They are also in the process of pumping lots of money into NH Plaza, financing a big grocery operation and getting ready to start construction on that convenience / gas / retail development at 50th & Western.


They don't seem to have slowed down at all.

You would think so but they continue to buy land and spend a ton of money on existing structures.

They are also in the process of pumping lots of money into NH Plaza, financing a big grocery operation and getting ready to start construction on that convenience / gas / retail development at 50th & Western.


They don't seem to have slowed down at all.

What new construction have they started since the begining of the year? The last thing they started on campus was PG3.

What new construction have they started since the begining of the year? The last thing they started on campus was PG3.

I think you mean Parking Garage #5, started in March 2012 at a cost for $35 million.

They've also started work on a structure just north of the main playfield, the creek and extensive landscaping on the north end near 63rd, added improvements to their community garden and are doing an absolutely massive amount of work on the east side of their campus for a huge retention pond and associated dirt work. This is in addition to PG #3, Buildings #1, 14, 15, the RTC building, the Data Center and Central Plant, all of which are still under heavy construction.

They have also pumped millions into the Central Park buildings, Harvey Parkway, the Atrium Towers and several other off-campus buildings in 2012. BTW, despite selling the business contained within, CHK has retained ownership of the Central Park buildings.

In addition to all of this, they will also be constructing an addition to Classen Curve. Not sure if this has started yet but it will soon.

Chesapeake amends loan agreement | NewsOK.com (http://newsok.com/chesapeake-amends-loan-agreement/article/3714942)

Chesapeake -- under yet another new LLC -- purchased .7 acres for $2.5 million (about $3.5 million / acre) about two weeks ago. Total assessed market value: $220K.

This is for land around 57th and Lee, which interestingly enough is very close to the MidFirst property. CHK already owns almost everything else in that area.

Perhaps they are assembling the few final properties so they can acquire the MF property (building and a big chunk of land) that is adjacent?

"Funny" Texas Joke that may apply here:
There was a rich Texan that was buying up all the land he could. Eventually the news got wind of what he was doing and accused him of wanting to own all of Texas. "Fellas," he told the reporters, "I don't want to own all of Texas, I only want to own all the land that's adjacent to mine."

Pete -
Do you know if Chesapeake or one of their LLCs owns the property just north of the correctional facility near Robinson and Grand? They did a lot of dirt work at this location and put in a retention basin in the middle.

Pete -
Do you know if Chesapeake or one of their LLCs owns the property just north of the correctional facility near Robinson and Grand? They did a lot of dirt work at this location and put in a retention basin in the middle.

No, that's not owned by Chesapeake.

Not sure what is going on there.

I just thought it might be Chesapeake since the property was bought, trees were torn down, a large amount of fill was added to the site, and now there is a retention basin for a large site. It just sounded like something Chesapeake would have the money to do.

I wish CHK would have bought the low security correctional facility and had it moved,you'd think they'd want it out of their backyard considering the purchases they've made.

I wish CHK would have bought the low security correctional facility and had it moved,you'd think they'd want it out of their backyard considering the purchases they've made.

That is an interesting question - what would it take for a private entity to "buy out" a state facility? Is it possible? It is basically "reverse imminent domain".

I know Chesapeake has been trying to buy the Juvenile Correction Center on Western for years.

I would think it's a simple matter of making economic sense for the state entity, i.e. being paid enough to be able to relocate to a different facility and put some money in their pocket.

Today, I noticed the Glenbrook West building (on the SE corner of Grand & NW 63rd and just west of the other large office building that was demolished a couple of years ago) is now almost if not completely empty.

The doors were unlocked and the lights were on but there were zero tenants on the ground floor, where just about five months ago several of the suites were full. It looked like there might be just one straggling tenant left on the upper floors.

Expect CHK to demolish this structure very soon.

I know Chesapeake has been trying to buy the Juvenile Correction Center on Western for years.

I would think it's a simple matter of making economic sense for the state entity, i.e. being paid enough to be able to relocate to a different facility and put some money in their pocket.

I heard that the discussions involved the corrections people identifying a replacement site, having CHK buy it, buiding the new facility, and then swapping. That takes a lot of people, a lot of money, and a lot of time. I can see why it didn't get done.

From what I am hearing and seeing, I think Chesapeake is starting to shut down their crazy real estate machine.

Firstly and as I posted on the Mystery Tower thread, it looks like they are no longer actively seeking the MidFirst properties along I-44 AND plan to consolidate a lot of their employees back to the main campus when buildings 1, 14, 15, the RTC lab and the Data Center are complete. They will be opening a ton of new square footage (along with two new parking structures) in the next year, as most these buildings are well larger than anything they've built before and of course, they are selling assets and down-sizing. So, look for them to move staff out of the Caliber Center, Atrium Towers, etc. It will be interesting to see if they lease or sell those buildings. I'm sure they will hold them for at least the short-term.

Second, I've heard that they may not be going forward with the Nichols Hills Plaza grocery store (see that thread for photos) and are now looking for someone to operate it for them. Also, the idea of swapping the $10 million church they acquired for NH City Hall has gone very quiet.

Third, after all the hassling with citizens and the planning commission, the project at 50th & Western may be off as well. They already have a CNG station there, which under the current plan would be completely removed for a big convenience / gas store, along with some other commercial space. They were to brand this new store "Peake" but this may be a case of the new board not wanting them to start up yet another completely new business.

Fourth, the expansion at Classen Curve hasn't commenced. They have all the approvals and the homes have been demolished, so this may or may not be related to a slow down.

Fifth, I didn't see any activity at the proposed Pops location in Bricktown. Although this is an Aubrey project and not CHK, perhaps there has been a change of heart in light of the new board's pressure to focus on Chesapeake core businesses.


Not surprising if the Chesapeake gravy train is finally at least slowing down, and that certainly seems to be what is happening.

1) Do they have enough space, even with the new buildings about to open, to consolidate all their employees at their campus? This is a real letdown because I was really hopeful that MidFirst would make the move downtown. Really too bad they didn't take CHK's offer when they had it.

2) This is not that surprising at all. It never made any sense to begin with, but it's a damn shame they drove out everything that was there and now things seem to be in a lurch.

3) While understandable, this is disappointing. I thought this would be cool.

4) Not surprising either. Too bad it wasn't designed better from the start. I don't know that it would have made any difference, but maybe they could have added some housing and made it more of a sustainable area.

5) This is really disappointing. I thought a Bricktown Pops would do very well and will be bummed if it doesn't happen.

Does Chesapeake get this all turned around eventually and emerge stronger or do you think they're destined to be bought out and exported to Houston?

I noticed that the 50th & western "Peake" has been fully sodded with grass, when before it had been graded for site const.

They are obviously going to have to sell Caliber Center & Atrium Towers for a deep discount for what they paid for them!
But I assume the new and more conservative management will want those off the books.

Any companies that didnt sell to CHK is sure going to regret it because as you said.. I think the gravy train is slowing down too.

1) Do they have enough space, even with the new buildings about to open, to consolidate all their employees at their campus? This is a real letdown because I was really hopeful that MidFirst would make the move downtown. Really too bad they didn't take CHK's offer when they had it.

2) This is not that surprising at all. It never made any sense to begin with, but it's a damn shame they drove out everything that was there and now things seem to be in a lurch.

3) While understandable, this is disappointing. I thought this would be cool.

4) Not surprising either. Too bad it wasn't designed better from the start. I don't know that it would have made any difference, but maybe they could have added some housing and made it more of a sustainable area.

5) This is really disappointing. I thought a Bricktown Pops would do very well and will be bummed if it doesn't happen.

Does Chesapeake get this all turned around eventually and emerge stronger or do you think they're destined to be bought out and exported to Houston?

1. The buildings under construction total almost 800,000 square feet and what they have completed on campus (including the Grand Park buildings near I-44) is about 1,200,000 s.f. So, they are almost going to double their campus capacity within the next year. Among all the off-campus buildings that hold their employees, most are not exclusively for Chesapeake, as they inherited lots of existing leases. So, yes, I think they can accommodate almost all their employees when their new buildings are complete, especially with all the recent and proposed asset sales.

2. Yes, I was always wary of this new grocery store and now the expulsion of Crescent and the lunch counter looks especially bad.

3. Not 100% sure the 50th & Western thing is dead, but it's starting to look like that is a distinct possibility. Perhaps they just get On Cue to develop it themselves.

4. Nobody has told me the expansion at CC is off, but I find it suspicious nothing has happened there since obtaining all the approvals. And of course, there is still a decent amount of vacancy in the existing sections.

5. I haven't heard Bricktown Pops (sounds like an orchestra!) is off, just speculating it may be another casualty.


And as to the final question about CHK getting turned around, that seems to be happening now. I'm sure we can all agree the most important thing is that they stabilize and continue to be a big employer in OKC. From all indications, it looks like they are getting their act together.

BTW, we all knew the day would come when Chesapeake would be jolted back to reality.

For years, I feared it would happen before they could start putting things back, after chasing out scores of restaurants and businesses around the once-thriving -- if a little ragged -- 63rd & Western area.

No matter what happens now, at least we have a Whole Foods, Anthropologie, and everything in Classen Curve. If the crap had hit the fan a few years ago instead of just recently, OKC would have been left with a huge scar.

Looks like we'll come out of this okay unless CHK completely implodes or is sold and moved, but for goodness sake, we keep putting ourselves at the mercy of these massive and risky real estate schemes and frankly, we're just darn lucky this didn't turn out much worse -- at least, thus far.

BTW, we all knew the day would come when Chesapeake would be jolted back to reality.

For years, I feared it would happen before they could start putting things back, after chasing out scores of restaurants and businesses around the once-thriving -- if a little ragged -- 63rd & Western area.

No matter what happens now, at least we have a Whole Foods, Anthropologie, and everything in Classen Curve. If the crap had hit the fan a few years ago instead of just recently, OKC would have been left with a huge scar.

Looks like we'll come out of this okay unless CHK completely implodes or is sold and moved, but for goodness sake, we keep putting ourselves at the mercy of these massive and risky real estate schemes and frankly, we're just darn lucky this didn't turn out much worse -- at least, thus far.

The 63rd st boom is over, but we now have the downtown boom which by all indications should continue and pick up in intensity over the next few years.

They are obviously going to have to sell Caliber Center & Atrium Towers for a deep discount for what they paid for them!
But I assume the new and more conservative management will want those off the books.

Any companies that didnt sell to CHK is sure going to regret it because as you said.. I think the gravy train is slowing down too.

Even if they want it gone they may want to write it off in either a very good or a very bad quarter so it would an insignificant a line item that does not draw attention

Remember that not only does CHK routinely pay way over market for these buildings, they also pump millions into renovations for their own use.

Generally speaking, in most the buildings they have acquired they have invested more than double the current market value.

And as to the final question about CHK getting turned around, that seems to be happening now. I'm sure we can all agree the most important thing is that they stabilize and continue to be a big employer in OKC. From all indications, it looks like they are getting their act together.

I think this is the biggest thing to keep in mind. While their continual purchases at way over market value were troubling, it's equally troubling that they're not going to be able to replace all the stuff they kicked out. But honestly, the most important thing is that CHK gets things turned around and continues to be a large employer in OKC. Here's hoping they can.