Two Classen Buildings sell for $4.2 million
Two Classen Boulevard buildings sell for $4.2M
Journal Record
May 28, 2008
OKLAHOMA CITY – Downtown Oklahoma City and the north side have a connection. From about NW 18th Street to Northwest Expressway along Classen Boulevard are office buildings both big and small built from the early 1950s to the mid-1980s. Their values neither soar nor plummet, and occupancy stays about the same. None are flashy. And it’s that very humdrum character that makes the corridor attractive to investors.
Along the route are two nearly identical buildings on Classen Boulevard that sold last week for $4.2 million. Oklahoma Property Investors II LLC purchased the two buildings from I.D.K. Investors LLC. The seller was only the second owner of the buildings since they were built.
Included in the sale were the 3700 and the 3800 Classen buildings, located between NW 36th Street and NW 38th Street, on the east side of the road. Both are poured-in-place concrete and two stories, each with a lower level. The 3700 building was built in 1980 and the 3800 building was built in 1982. Combined, the buildings have nearly 90,000 square feet.
Zach Martin and Tim Strange, with Sperry Van Ness Oklahoma, handled the transaction. Martin said at the time of sale occupancy was at about 70 percent. He said the buyer plans some upgrades, but nothing extensive is required. Both buildings were renovated in 1995. “They are rock-solid buildings and are in great shape,” Martin said.
The two buildings house about a dozen tenants, including some state agencies like the Oklahoma Water Resources Board. That stretch of Classen Boulevard has office buildings mixed with homes and retail businesses, and buildings range from several thousand square feet to larger buildings like the Cameron Building, at 2901 N. Classen Blvd., which has more than 82,000 square feet. The Cameron Building was built in 1953 and added onto in 1958. The last major office building built along Classen Boulevard is the Circle Building, at 5101 N. Classen Blvd., constructed in 1984.
Brent Conway, with CB Richard Ellis Oklahoma, said Classen Boulevard is not the hottest market in town, but does have its advantages, especially being between the Northwest Expressway corridor, Midtown and downtown. “What you do see a lot of are owner-users or small market investors because the price points that are available on Classen are attractive for both of those types,” Conway said.
Darren Currin, vice president and research director for OKC Property Research LLC, said another factor that has kept occupancy high along Classen Boulevard is American Fidelity, which has a presence in several buildings on the corridor. He said all of the office space on Classen Boulevard is Class B and Class C, which fetches about $11 to $12 per square foot.“It’s just a nice stable market,” Currin said. “You won’t see high highs or low lows but with improvement to the area that could change.” One factor that has also benefited the area is the investment in the Asian District, which has spruced up Classen Boulevard and brought in new retail and office investment.
Currin said the central location, paired with affordable rent and ample parking, will likely continue to cause the area to thrive as a connecting vein between downtown and north Oklahoma City.“You’re minutes from downtown and minutes from Northwest Expressway,” Currin said. “It’s right smack in the middle of two major office markets.”
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