Kerr-McGee Heading $30 million to $40 million Project To Bring Luxury, Penthouse Living to Downtown OKC
View the pictures
Posted: Thursday, November 10, 2005
By Pamela Grady
pgrady@okcbusiness.com
Similar to Chesapeake Energy Corp. seemingly entering the commercial real estate business, it appears Kerr-McGee, too, is following suit by entering the market outside of oil and gas.
One of the largest U.S.-based independent oil and natural gas exploration and production companies, Kerr-McGee today announced it is partnering with Corporate Redevelopment Group LLC to renovate three downtown historic buildings the company owns into large luxury and penthouse condominiums.
Chief executive and Chairman Luke Corbett said details of Kerr-McGee and Corporate Redevelopment Group's respective financial stakes in the $30 million to $40 million project still were being negotiated.
As such, neither Kerr-McGee nor Corporate Redevelopment Group yet has discussed the parameters of the project with the city.
According to state Secretary of State records, Corporate Redevelopment Group was formed just two days ago - on Nov. 8. Its principals include William "Pat" Garrett, Bert Belanger, Anthony McDermid, Judy Hatfield and Jeff Van Hoose.
The buildings proposed by Kerr-McGee for redevelopment encompass more than 270,000 square feet.
The seven-story 111 Robert S. Kerr Ave. building was constructed in 1902 and totals 38,736 square feet. The 11-story building at 135 Robert S. Kerr Ave. totals 155,911 square feet and was built in 1924. And the 10-story building at 324 N. Robinson Ave. is 75,584 square feet and was built in 1923.
"These are buildings that Kerr-McGee's had for quite some time," Corbett said. "We acquired the buildings in the mid-Sixties and they have been vacant and unused for about 20 years.
"We've maintained the buildings, but, due to the fact that we've expanded our operations in Houston, Denver and places like that, we obviously need less office space here in Oklahoma City. So this is a terrific way to take vacant, unnecessary and unneeded office space and transition it back into a use that's being demanded in downtown Oklahoma City."
The principals of Corporate Redevelopment Group, in essence, have engaged themselves and their respective companies to head up the Kerr-McGee project.
That is, Garrett and Company will be responsible for project management; Anthony McDermid at TAParchitecture will head project design; Jeff VanHoose with VanHoose Construction will head construction services; Judy Hatfield with Equity Realty will be responsible for sales and marketing; and Bert Belanger will serve as the project's legal counsel.
The developers plan to offer approximately 70 condominiums and penthouses. If the three buildings are redeveloped purely for residential living, that would mean the condos would average about 3,800 square feet, making them the largest luxury residences in the downtown area.
However, McDermid with TAParchitecture said it's very possible the buildings will be some form of mixed use.
"We are still developing the concept for the project, but we know at this stage of the planning, there will be at least 70 condominiums at the two west buildings, the 135 building and the 324 building," he said. "We haven't talked any specifics but a little grocery store might be a wonderful contribution to the project. It's early in the development phase. What we've been given here is an opportunity and we're going to explore any and all options."
Just what the project means financially to publicly traded Kerr-McGee also is uncertain.
"At this point, we are facilitating the redevelopment," said Richard Buterbaugh, Kerr-McGee's vice president of corporate planning. "The titles will not transfer immediately. There's still negotiation that would have to take place as far as how the buildings are going to be used and subject to their final plans on what's going to be done with the buildings.
"But we're certainly providing every opportunity to get these buildings back into use. I expect sometime early next year we'll know more about the finalizations of the project," he said.
Corbett said eventually the properties would transfer to Corporate Redevelopment Group but, again, what that would mean financially to Kerr-McGee has not yet been finalized.
"We're staying involved at this point in time because we want to make sure this is a high quality project," Corbett said. "There would be certain standards that we would like see, and, secondly, this is a high-caliber group. We feel like they could complete the project in a timely manner. So those are the issue's we've resolved upfront."
McDermid said Corporate Redevelopment Partners hope to get the project started during the first quarter of 2006. He said the team currently is working on design concepts and that they would have to be approved by Kerr-McGee before presented to the city.
"You can expect to see us announce some ideas after Kerr-McGee's had a chance to review and approved them within 60 days," he said, adding the transfer of title of the buildings from Kerr-McGee to Corporate Redevelopment Partners was triggered by "performance criteria."
He didn't believe the eventual value of the mammoth project to Oklahoma City could be overstated, but the scope required the type of experienced team Kerr-McGee had assembled to undertake it.
"It's all about the team," McDermid said. "It's all about having a capable team of people you trust and can rely on to perform. We've got a great team on the project."
High-End Condo Projects Planned for Downtown
Bookmarks