Company drilling for success with ‘high-end’ condo project

By Steve Lackmeyer Business Writer


Three historic downtown Oklahoma City buildings owned by Kerr McGee will be renovated into “high-end” condos next year as part of a deal announced Wednesday by Kerr-McGee Chairman and Chief Executive Officer Luke Corbett.

The buildings, empty for the past 20 years, include the former home of Braniff Airlines, an early headquarters for Kerr McGee and a building that was once home to the Legislature.

The developers, Corporate Redevelopment Group, include principals who are no strangers to downtown housing. Bert Belanger, Pat Garrett and Anthony McDermid also are partners in the Triangle, a housing, retail and office development being built this winter along NE 3 and Walnut Avenue. The threesome also are about to begin construc- tion on Central Avenue Villas in Deep Deuce.

“A lot of exciting things are happening downtown,” Corbett said. “This will be upscale housing. This particular group came forward with what we thought is a viable plan, a plan they can accomplish. And it met the criteria we want: Something that is very nice for downtown and will continue the momentum.”

The approximately $40 million development will offer about 70 forsale condominiums and penthouses. The project would cover three Kerr McGee buildings with space totaling 270,000 square feet:

• 111 Robert S. Kerr Ave. is a seven-story, 38,736-square-foot building built in 1902. The property was a temporary home to the Legislature for four years.
• 135 Robert S. Kerr Ave. is an 11-story, 155,911-square-foot building built in 1921 that was once Kerr McGee’s headquarters.

• 324 N Robinson Ave. is a 10-story, 75,584-square-foot building built in 1923 that was once home to Braniff Airlines.

Terms of the deal or potential sale prices were not being disclosed Wednesday. Corbett said parking arrangements for the development are not finalized.

Corbett said his company has fielded numerous offers for the properties over the past decade, but he said the ideas or timing was never quite right.

“What’s captured our attention is what has happened to the downtown area after MAPS,” Corbett said. “If you look at the momentum we have in this city and the growth that’s occurring downtown, it’s breathtaking.”

Corbett said the agreement, which is expected to close within the next few months, imposes deadlines for development.

“We’re trying to have all this done by the Centennial in 2007,” Corbett said.
McDermid, the project architect, first publicly suggested the buildings could be converted into housing at a mayor’s conference three years ago. He praised Kerr McGee for carefully maintaining and securing the properties long after they were no longer needed.

“They have a 75-year history of being a great downtown benefactor. This continues that legacy of investments they’ve made for the public purpose, and now they see there is a demonstrable need for housing downtown.”

McDermid said the three buildings, especially the Braniff Building, are well-suited for housing because of their windows, views and natural lighting.

“The Braniff Building is one of the most storied buildings in Oklahoma City’s history,” McDermid said. “Although we don’t have specific designs yet, we will want to maintain the Braniff theme and record the history in some way.”

More uncertainty surrounds the property at 111 Robert S. Kerr, which had a concrete exterior placed over the original facade 40 years ago. McDermid said his group wants to restore the original facade but must consider costs and find photos or designs showing how the material was installed.

Belanger said he is not worried about adding too much housing to the downtown market.

“We think there is plenty of demand for all these products,” Belanger said. “We’ve got price-points at $100,000, $200,000 and $400,000. We don’t know what the lofts in the Kerr McGee buildings will cost, but it will probably be in the middle of that.”

Belanger said he’s fielding calls every week about the previously announced projects in the Triangle and Deep Deuce.

“Some are frustrated, frankly, that things haven’t developed more quickly. But we’re getting very close to having product that we can deliver.”