Chesapeake empire marches on

[swilki]

Spartan - We can agree on this, we both want Western to advance from its current patchwork of good businesses vs bad. Hopefully some developers will see some potential and start tearing down the derelict buildings. I think CHK might just be that developer and based on previous projects that CHK has done, I have some hope in this. But, a gas station is definitely not my first choice. Sometimes we have to take baby steps in the right direction though. So, if that means tearing down the old car wash and crappy gas station to build something nicer, then alright. Maybe it will inspire those to the south to get their act together and really start developing the area.

I am actually shocked that the neighborhood behind the gas station is allowing this to happen. When I was working at CVS and they were discussing building a new store (the new one at 50th and Shartel) Walgreens was talking about building a store at 50th and Western. Well, the residents in the area surrounding the proposed Walgreens banded together and said we don't want that or need that. They stopped the project. I am kinda surprised that a larger gas station is ok with them.

Are you familiar with Seattle? Specifically Ballard? I just visited last spring and couldn't help but think this was the type of area that Western could someday develop into. Local shops, a farmers market and some residential (apartments and condos above the restaurants and shops). Anyway, I will stop derailing the CHK thread and stop talking about Western.

[onthestrip]

Spartan - We can agree on this, we both want Western to advance from its current patchwork of good businesses vs bad. Hopefully some developers will see some potential and start tearing down the derelict buildings. I think CHK might just be that developer and based on previous projects that CHK has done, I have some hope in this.

Itll have to be Chesapeake because no one else can do it. Chpk coming in and buying properties with no regard to costs has made it difficult for any normal developer to do anything. I still dont know how Chpk can use so much of the company dollars to buy up properties for puropses not related to producing oil and gas. Have no shareholders raised a stink about this yet?

[Teo9969]

Itll have to be Chesapeake because no one else can do it. Chpk coming in and buying properties with no regard to costs has made it difficult for any normal developer to do anything. I still dont know how Chpk can use so much of the company dollars to buy up properties for puropses not related to producing oil and gas. Have no shareholders raised a stink about this yet?

I don't know exactly how it works, but I'm pretty sure there is a major subdivision for real estate within the Chesapeake umbrella. Heck, they own a tower down in Ft. Worth, ostensibly, just because it makes them money.

[Oil Capital]

I don't know exactly how it works, but I'm pretty sure there is a major subdivision for real estate within the Chesapeake umbrella. Heck, they own a tower down in Ft. Worth, ostensibly, just because it makes them money.

They own a tower in ft worth to house the large regional office they have there, not as some kind of independent real estate operation.

[ljbab728]

An update on their Nichols Hills Plaza.

http://newsok.com/chesapeake-energy-...rticle/3641804

[warreng88]

I drove by WF and Anthro and notices they were putting up the same vertical bronze things they have on WF in front of Anthropologie. Interesting tie in.

[ChargerAg]

any specific tenants annouced besides anthro and WF? when is antrho opening day?

[Pete]

An update on their Nichols Hills Plaza.

http://newsok.com/chesapeake-energy-...rticle/3641804

This entire article tells us nothing we didn't already know.

When is the new market opening? What will be the general merchandising approach? Who will operate it?

What are the larger plans for NH Plaza? There have been new rumors among the tenants (because leases aren't being renewed) about getting back to their plan of basically renovating the entire property. What is going on with this?

Why has there been fresh earth turned on the NW corner of 63rd & Western? What are the plans for the razed Kings Court property directly adjoining the plaza?

How might all this tie in to the property just south along 63rd? McClendon was recently quoted as saying this area would be for "national retail". That begs a ton of questions.

And in the more immediate term, who the heck is taking that big building west of Anthropologie?


As usual, CHK leaves us with more questions than answers and the local reporters offer little in the way of investigation. I mean no disrespect to Steve as I realize this isn't even his beat and he's having to crank out about 3 stories a day. I simply don't understand why real estate development that is bigger than Devon Tower in terms of size and dollars gets almost zero coverage other than to print the very limited information CHK gives out, usually only long after the fact something is already done.

[Spartan]

Spartan - We can agree on this, we both want Western to advance from its current patchwork of good businesses vs bad. Hopefully some developers will see some potential and start tearing down the derelict buildings. I think CHK might just be that developer and based on previous projects that CHK has done, I have some hope in this. But, a gas station is definitely not my first choice. Sometimes we have to take baby steps in the right direction though. So, if that means tearing down the old car wash and crappy gas station to build something nicer, then alright. Maybe it will inspire those to the south to get their act together and really start developing the area.

I am actually shocked that the neighborhood behind the gas station is allowing this to happen. When I was working at CVS and they were discussing building a new store (the new one at 50th and Shartel) Walgreens was talking about building a store at 50th and Western. Well, the residents in the area surrounding the proposed Walgreens banded together and said we don't want that or need that. They stopped the project. I am kinda surprised that a larger gas station is ok with them.

Are you familiar with Seattle? Specifically Ballard? I just visited last spring and couldn't help but think this was the type of area that Western could someday develop into. Local shops, a farmers market and some residential (apartments and condos above the restaurants and shops). Anyway, I will stop derailing the CHK thread and stop talking about Western.

I agree wholeheartedly. I just totally misunderstood the tone of your post.. as for the neighborhood, I don't believe that the neighborhood immediately behind Western is all that organized, and if they are organized, they probably understand themselves to be potential losers in gentrification. Just some food for thought. No doubt, they've also seen how Chesapeake has gobbled up much stronger and better-off property owners, so I think that explains why they haven't raised much of a fuss.

I just hope that this area gets the same level of attention to detail that CHK has given north of I-44, especially if they're about the become a much larger presence in the area.

[Spartan]

I don't know exactly how it works, but I'm pretty sure there is a major subdivision for real estate within the Chesapeake umbrella. Heck, they own a tower down in Ft. Worth, ostensibly, just because it makes them money.

I remember a few Gazette articles in the past with Aubrey joking that he's getting into the real estate business. But I don't think he was joking at all in hindsight. Real estate, which is pretty volatile, is still a lot more static than energy trading. I think they might see it as a legitimate piece of their portfolio by now.

[Pete]

Don't forget McClendon personally owns thousand and thousands of acres east of Edmond.

[metro]

As usual, CHK leaves us with more questions than answers and the local reporters offer little in the way of investigation.

This is often my beef with the local media. News gets broke on OKCTALK, the reporters use the site for "leads", and then come article time, there is little to no new info. Very rarely do the local reporters dig deeper, they're always worried about offending their employer or whomever the story is about.

[onthestrip]

I remember a few Gazette articles in the past with Aubrey joking that he's getting into the real estate business. But I don't think he was joking at all in hindsight. Real estate, which is pretty volatile, is still a lot more static than energy trading. I think they might see it as a legitimate piece of their portfolio by now.

Sure it's apart of their portfolio now but it's not very legitimate. They've spent millions overpaying for non essential properties that aren't producing very much income. Simply put, Chesapeake Land Co. has had to have lost millions

[Pete]

Sure it's apart of their portfolio now but it's not very legitimate. They've spent millions overpaying for non essential properties that aren't producing very much income. Simply put, Chesapeake Land Co. has had to have lost millions

More like hundreds of millions.

They've spent over $750 million thus far and their campus accounts for only about half of that. Even with the campus, if that was to be sold no way would they get anywhere near what they have into it; assessed values are about 1/3 to 1/2 what they have spent.

The remainder is on properties they have either torn down or from which they receive very little revenue.

[ChargerAg]

I was at whole foods today and noticed that anthropologie has the startings of window displays.


I have given up on ever going to whole foods without a crowd. As usual every register was open and the lines were 3-4 deep. I am pretty sure that they will build another within the next 2 years given how crowded this place is every time i go.

[Pete]

It might be a pain, but it's good for OKC that Whole Foods is doing so well.

Not only will it mean more WF locations, it will be a nice enticement for other national retailers being openly courted by the Chamber.

We could get quite of flurry of new businesses with retail sales finally starting to pick up and the economy solidifying a bit. All these chains are built to grow and they will start expanding again as soon as they can.

[Oil Capital]

More like hundreds of millions.

They've spent over $750 million thus far and their campus accounts for only about half of that. Even with the campus, if that was to be sold no way would they get anywhere near what they have into it; assessed values are about 1/3 to 1/2 what they have spent.

The remainder is on properties they have either torn down or from which they receive very little revenue.

Devon has spent $750 million on just one building. Seems unlikely they would be able to sell that building upon completion for anything close to that.

[Pete]

City officials have said they expect the Devon complex to be assessed right at $750 million. Devon has paid just about what any reasonable company would for the land, garage and construction. In fact, they seem to have gotten a pretty good deal from the city and they've claimed even construction has been under budget due to the slow economy and thus less demand for labor and material.

While CHK has routinely paid 3 to 4 times the appraised value of land and buildings and has then in fact razed most the structures. They've paid an average of about $2 million (!!) per acre for the hundreds of acres they own.

[Pete]

If this was reported at the time, I somehow completely missed it but CHK bought Caliber Center in December for $38 million.

Of course, this is almost double what the previous investor paid for it less than four years ago:

[Spartan]

Wow, I'm going to go ahead and call that one a horrible purchase.

[Pete]

They had just signed a lease for about half the building earlier in the year, which no doubt drove up the sales price considerably.

CHK had all three of the biggest office purchases in 2011: Caliber Center, Atrium Towers and Central Park I & II.


By taking these buildings off the market, they are really driving down the suburban vacancy rate... It won't be long before we see some new spec construction IMO.

[G.Walker]

they also bought the Super 10 Motel is SW OKC just of I-40. Why? I have no idea. Maybe because they own 5 acres east of this site, maybe they are looking to do some type of development?

http://www.naisullivangroup.com/OKNe...orOKCHotel.pdf

[G.Walker]

Now that I think about it, this area does lack Class A office development. They might be considering building some type of Class A suburban office park? Which would make sense to the reason why they are buying up all the Class A office space in Oklahoma City, lol. Nonetheless, good move.

[Oil Capital]

It's almost never a good move to pay 3-4 times market price as Pete B has suggested they are doing. What is up with that? And how can I get on this gravy train?

[kinggober]

New webcam up for parking garage 5 http://oxblue.com/pro/open/smithandpickel/chesapeakepg5

Listed as garage 4 below