City Place being purchased by locals

[metro]

OKC businessmen plan to purchase City Place
By Pamela Grady - 8/28/2008
OKC Business

Local businessman Roy Oliver and Mark Beffort are in the midst of purchasing City Place, a 33-story historical high-rise building at 204 N Robinson Ave.

Beffort declined to comment on the sale price but said the deal is expected to close at the end of September.

Globe Life and Accident Insurance owns the 329,830-square-foot building that was built in 1931 according to Oklahoma County records.

“They (Globe Life) will continue to stay in the facility as they do occupy a significant amount of space,” Beffort said. “They’re spread throughout the building and they are in the process of right sizing their space.”

Beffort said currently the office building is at 65 percent occupancy, mainly by a number of independent oil-and-gas companies.

“The most notable (tenants) are Interurban City Express restaurant on the first floor and UMB Bank,” he said.“It’s a good alternative as we market our properties and it’s going to be a really good investment for us.”

In May 2005, the duo also purchased the Leadership Square and Oklahoma Tower, two downtown office buildings for more than $90 million. The two-tower Leadership Square at 211 N Robinson Ave. was built in 1984. The south tower consists of 16 stories and the north tower consists of 21 stories totaling 735,000 square feet. The 31-story Oklahoma Tower at 210 Park Ave. was built in 1982 and totals 612,290 square feet.

Oliver also owns Corporate Tower at 101 N Robinson which totals 14 stories consisting of 268,539 square feet and was built in 1979. Oliver paid $12.25 million for the property in Aug. 2000.

Oliver purchased The Tower (also known as The Valliance Tower), a 22-story office building at 1601 Northwest Expressway for $20.8 million in 2003. The building totals 337, 304 square feet and was built in 1984 which contains a two-story, 325,905-square-foot parking structure.


The City Place building located at 204 N. Robinson. Photo/Mark Hancock

[bombermwc]

These guys are buying up the icons of the city. It's sort of strange to me to have so many of the buildings owned by the same people. One problem I can see with that is the ability to bleed a building for another. And if you own them all, why would you put money into attracting tenants from other buildings if you are simply competeing with yourself.

[Pete]

They are very smart local investors.

Mark Beffort is a friend of mine and an extremely sharp and ethical guy. He's been in the commercial brokerage game for 20 years in OKC (I used to work with him) and he really knows the market.

They've done a great job with the buildings they own and I hope they can get the occupancy up at City Place. I'm sure that's their goal.

[OKCTalker]

People invest in what they know, whether it be trophy buildings, commodities, mutual funds, oil & gas deals, technology, etc. Real estate gets covered and the names reported; the other types of investments don't. Mark is a friend of mine also, and he's a stand-up guy and good businessman.

[jbrown84]

Any chance they plan to go Residential with City Place, Pete?

[Pete]

No way. These guys are office property specialists and don't know a think about residential.

I don't think that building has the same big issues as FNC, such as a huge amount of undesirable space tacked on the back and restrooms between floors.

It's fine as an office property although the floorplates are small. Just means they'll probably cater to smaller tenants.

[bluedogok]

I worked there when I was at TAP, it is a nice building but definitely has some of those old building "quirks" on the upper floors where the floor plates are small. The restrooms being split between floors and the fireslide were some of those quirks that it had.

[yukong]

No way. These guys are office property specialists and don't know a think about residential.

I don't think that building has the same big issues as FNC, such as a huge amount of undesirable space tacked on the back and restrooms between floors.

It's fine as an office property although the floorplates are small. Just means they'll probably cater to smaller tenants.

The restrooms in City Place are also between floors as I recall. My dad officed there back in the 60s and early 70s. And it has that cool fire escape slide but no matter how hard I begged, dad would never let me slide down that thing.

[jbrown84]

The restrooms in the Colcord used to be between floors. In the fire stairwell, you can still see the doorways on the landings.

[bombermwc]

But the question still stands on if you own all of these properties, what's the calling to improve them when your competition is your own buildings?

[Pete]

Why wouldn't you want to fill all your space, regardless of building?

Tenants for City Place are likely to be smaller (and less willing to pay higher rents) than for OK Tower or Leadership Square.

[bombermwc]

I'm not talking about just filling space. I'm talking about making sure the building stays current and doesn't fall behind. Keep the improvements flowing to keep the buildings nice.

[Luke]

Supply and demand.

If they want to make sure their buildings make them money, then they will improve enough to keep tenants. If not, then tenants will leave.

[jbrown84]

New article. Only new info I see, however, is that they plan to put in 7 apartments on the top floors.

Developer reaches for sky with recent City Place buy
BY RICHARD MIZE
Published: October 11, 2008

Roy Oliver bought City Place, the historic 33-story skyscraper in downtown Oklahoma City, this week and plans improvements, including seven apartments on the top floors.

Oliver paid $4 million for the 329,830-square-foot building — 294,000 square feet rentable — at 204 N Robinson, valued at $5.5 million by the county.

The office tower, constructed in 1931 by oilman Walter Ramsey, has been the home of Globe Life & Accident Insurance Co. since the 1970s.

Globe Life continues to occupy about 50,000 square feet on a long-term lease, said Mark Beffort of Grubb & Ellis-Levy Beffort, who handled the transaction. No one at Globe Life could be reached for comment.


Why he bought it
Oliver said City Place complements the rest of his office portfolio in Oklahoma City, which includes four downtown and two suburban buildings.
"We don’t expect there to be a huge financial gain with that building,” he said, but its architecture, history and potential made it attractive.

Beffort said the Depression-era City Place, was a good investment, especially since it doesn’t compete with Oliver’s other, newer buildings.

Keeping Globe Life as a tenant, Beffort said, lends strength to the investment. Globe Life plans to "right size” its occupancy, consolidating to the basement and third, fourth and fifth floors.


Background
City Place, originally known as Ramsey Tower, designed by Clair F. Drury, "is Oklahoma City’s best example of the architectural style used for skyscrapers built during the late 1920s and early 1930s,” according to information in 1980 and at the Historic Preservation Office.
The record further describes the building:

"With a series of setbacks and vertically aligned bays of windows, that style represents a transition in multistoried construction. The architectural significance is enhanced by the building’s historical heritage, for it was constructed as a result of the Oklahoma City oil boom ...

"... the plans specified a building which would offer maximum floor space, but not visually intimidating. This latter element was important, for most Oklahoma City citizens in 1930 had to be acclimated to the awe-inspiring height of new buildings made possible by new construction techniques.

"The Ramsey Tower’s setbacks gave the visual impression of stability and strength. Today’s skyscrapers rise in straight vertical lines, a design that would not have been accepted in 1930.”

[Pete]

Love the idea for apartments! Those floors are so small up there it doesn't make much sense for office tenants anyway.

[jbrown84]

Very true. Wish they would do more residential though.

[Kerry]

The article said 7 apartment but the graphic said everything above the 15th floor would be apartments. Unless those are 7 multi-story apartments something doesn't jive with the count.

[bombermwc]

Wouldn't be a stretch for them to be multi-level. Get the town house effect at the 15th floor. How freaking cool would that be?!!!!

[jbrown84]

Hopefully it's really 18 floors of apartments and not just seven total.

[David Pollard]

This would truly be a wonder for OKC if it were to happen. It is such a classic skyscraper design and RIGHT in the middle of town. I can easily visualize elegant apartments a la NYC. Let's keep our fingers crossed that City Place really becomes THE Place to be in the City!!

[Kerry]

This would truly be a wonder for OKC if it were to happen. It is such a classic skyscraper design and RIGHT in the middle of town. I can easily visualize elegant apartments a la NYC. Let's keep our fingers crossed that City Place really becomes THE Place to be in the City!!

You might be on to something there. They should change the name from City Place to just The Place. Maybe this will inspire FNC to go residential. That would take a lot rental space off the market.

[jbrown84]

It makes perfect sense to keep the name as City Place. Sounds like a condo tower to me.

http://www.chgcityplace.com/
http://www.cityplacebuckhead.com/
http://www.wilderco.com/city-place2.htm
http://www.cityplacenj.com/
http://www.cityplacetower.com/

[HOT ROD]

Everything above floor 15 will be apartments, since the floorplates drop off significantly.

My understanding is the "seven apartments in the top floors" refers to just that, the top floors (30-33). The writer didn't say anything about the lower middle portion of the tower because either he didn't know what would happen to it (or when) OR the developer hasn't yet figured it out but in-general wants it to be residential.....

So, my take is the top floor (33) will be a 2,500 square foot penthouse. Then three on the two floors below. Just think, the penthouse will be larger than most houses (even though it is the smallest part of the skyscraper, interesting prospective huh) - in effect, it is a very large house 460 feet up. ... [I'd LOVE to buy it!]

Below that hasn't yet been plotted out, but it would be apartments (eventually) down to 16. 15 begins the large footprint, so office is viable.

In effect, City Place is going to become OKC's biggest MIXED USE (Office/Residential) skyscraper, with Globe Life still anchoring the largest floors (on the bottom)!

I really hope they are going to put retail in those 1st floor storefronts!!!

[Saberman]

Always thought that would be a good idea, thought it would be good idea if the First National building made upper floors into condo's or apartments. Best view in the city.

Between the two, connected by the underground tunnel as well, they would make for some pretty impressive shopping.

[metro]

Actually HOTROD, the paper said they will be 2,500-5,000 one floor each penthouses. Not that's a nice PERspective.