First National Center

[Pete]

Thanks Steve.

I sure wish someone would write an article about what is going on with the FNC and Capmark. There hasn't been an update in almost a year... Last we heard Milbank proposed to make a partial payment and the bankruptcy court was to have ruled on this in September. What happened with all this??

[Steve]

Pete, the reason Bailey and I haven't written much is that there hasn't been that much to put a hook on - a lot of continuances, a lot of back and forth where Milbank claims they have a finance plan ready to go, then not, then yes, more motions... all the stuff that makes a case go on for a long time... I wish it was as quick and colorful as shown on TV, but sadly....

[okcpulse]

If I were mayor of OKC, I'd push for an ordinance that any structure downtown that represents a significant presence on Oklahoma City's image must be operated and maintained in a stringent manner which does not compromise the properly. Failure to comply with the ordinance should result in stiff fines.

Basically, if a skyscraper with significance in architecture and history is being operated by lazy property owners that drag their feet and nothing more, said lazy property owner should be thrown to the wolves. The building has a lot of exposure in on our skyline. That should come with serious responsibilities.

[Pete]

Pete, the reason Bailey and I haven't written much is that there hasn't been that much to put a hook on - a lot of continuances, a lot of back and forth where Milbank claims they have a finance plan ready to go, then not, then yes, more motions... all the stuff that makes a case go on for a long time... I wish it was as quick and colorful as shown on TV, but sadly....

That's a story in itself!

What exactly has changed since Milbank proposed the payment? Is it still on the table and/or could they even come up with the money at this point? Did you know Capmark emerged from bankruptcy in September? How is that impacting the situation? If they do get the property back, what would their plans be? What are the next legal steps?

Is Milbank current with other non-mortgage bills on the property? Have they made any mortgage payments at all in the last year?

What does city leadership think about this? Is the city getting involved at all? Are there any thoughts about using eminent domain to get control of the property? Are they content to sit by and watch the property lose tenants and therefore diminish greatly in value?


The thing with Devon and the elevators is only a very small fraction of the bigger story here and no one is reporting on it.

[ljbab728]

http://newsok.com/observers-suggest-...rticle/3634558

[Vito]

If a receiver isn't appropriate in this case, I can't imagine a scenario in which a receiver would be appropriate.

[Pete]

Thanks to Steve for doing some follow-up on this story!

I honestly don't understand how the judge in this case can continue to let this drag on. Milbank filed their plans to make a substantial payment and the court was to have ruled on this in September. Milbank has only dragged things down much further and yet no ruling or other progress has been made. Capmark (the lender) is trying desperately to gain control so they can stop the bleeding on the building and yet nothing has been done.


I hope this guy gets thrown in jail, not only to expedite this situation but because he is clearly a dishonest crook.

For all those people clamoring for more out-of-state investors and developers, this is an extreme example of the possible downside of someone that is not in any way part of the community.

[UnFrSaKn]

Perhaps some day, when FNC gets proper tenants and the building gets the attention is deserves, some December in the future we'll see this again in a restored building.







How downtown Oklahoma City rediscovered its Christmas spirit

Oklahoman archive photos serve as a reminder that downtown was once the heart of the city's Christmas celebrations. If it seems that those crosses have filled the downtown skyline for decades, well, they have. I was stunned when I first stumbled upon a photo a couple of years ago that first appeared in The Oklahoman on Dec. 14, 1938. Liberty Tower and Kerr-McGee towers didn't exist at that time. But on that day, so long ago, readers were treated to a front-page photo of a cross, patterned after the one on Christmas seal stamps, extending from the 18th to the 27th floors of First National Tower.

Referred to as a “flaming cross,” the display was flooded in red and green light and topped by a powerful beacon light. The cross was given a flaming effect by 2,646 pieces of tin, reflecting the light of 323 powerful bulbs, and kept in motion by electric fans.

The newspaper account at that time hints the display already had made quite an impression on locals and visitors.

[Steve]

Will! Great additional shots from OHS! Did those photos have a year on them?

[UnFrSaKn]

I included these photos in that one email from a few weeks ago that had St. Luke's and others. It's very interesting you happened to find out more about them without seeing the photos first. No, there wasn't a date on them unfortunately.

[Steve]

I didn't see those photos - would have saved me quite a bit of searching in our archives. I first saw the Oklahoman photo a couple of years ago, but then, of course when it comes to finding it again....

[UnFrSaKn]

Is this what the "beacon light" looked like back then?

[MikeOKC]

Are those lights that bathed the top, with a green hue, not used at all anymore? Power of observation is not one of my strengths. I had to admit to my wife recently that I didn't know what was hanging on our kitchen wall. I can picture those lights in my mind like it was yesterday, but it may have been 25 years ago.

[Spartan]

Pete, the reason Bailey and I haven't written much is that there hasn't been that much to put a hook on - a lot of continuances, a lot of back and forth where Milbank claims they have a finance plan ready to go, then not, then yes, more motions... all the stuff that makes a case go on for a long time... I wish it was as quick and colorful as shown on TV, but sadly....

I think the future story line surrounding all of this will be how do we get this building out of Yash's hands.

[Pete]

Finally some good news:

Steve reports on his blog that Cafe 7 is taking the ground floor space formerly occupied by the office supply store.

This is in the northwest corner of the property, facing Robinson.


I really like the Cafe 7 on May near QS. This should be yet another nice addition to downtown (pic from their twitter feed):

[Spartan]

Russian Sam should see this..lol

[Pete]

$60K building permit today for Cafe 7.

[OklahomaNick]

$60K building permit today for Cafe 7.

Wonder what they are paying for rent on that corner..?

[Pete]

No sure about the rent but it's 3,075 square feet, which is a decent size.

[OSUMom]

Yay! Some of the restaurants get a bit crowded at lunchtime. We need more.

[warreng88]

High rise owners and Bank reach deal
Journal Record
Brianna Bailey
March 5, 2012

OKLAHOMA CITY – The owners of downtown’s troubled First National Center have reached an agreement with lender Capmark Bank that – if approved by a U.S. Bankruptcy Court judge – would allow them to maintain control of the historic property in exchange for a $12 million settlement, according to court documents.
The settlement would release First National’s California-based owners from all claims Capmark might have on the property and resolve a nearly two-year legal battle over the 33-story art deco tower and two attached buildings.

The proposed settlement was filed with the court last week after a settlement conference between the two parties in February, according to court records.

“The settlement conference was successful and the parties were able to reach a global resolution of their disputes,” First National’s owners said in a motion asking the court to approve the settlement.

The $12 million settlement would release First National’s owners from a $21.4 million secured claim mortgage holder Capmark Bank has on the property. First National also has agreed to enter into a new contract to renovate elevators in the building with ThyssenKrupp Elevator Corp. worth up to $100,000 as part of the settlement, according to court documents.

The settlement contains a provision that the property will be placed in receivership should First National’s owners fail to pay Capmark in a timely manner or follow through with the other terms of the agreement.

First National Center has lingered in Chapter 11 bankruptcy since October 2010 while tenants at the retail and office center have complained of ongoing maintenance problems and spotty elevator service in the high-rise tower.

First National’s largest tenant, Devon Energy Corp., was not part of the settlement negotiations, and continues to battle with its landlord over ongoing issues with elevator maintenance and more than $600,000 it claims First National owes the company for restoring bathrooms in the building. The company filed a motion in U.S. Bankruptcy Court last week asking the court to order First National to fix the elevators in the building and repay the $606,000 Devon spent on restroom improvements within 30 days or reject its lease.

The company is getting ready to begin moving employees into its new 50-story corporate headquarters downtown and has yet to receive a clear answer from First National’s owners about the status of its lease at the building, said Tim Hartley, a spokesman for Devon.

“Is Devon trying to get out of this lease?” Hartley said. “The answer is no.”

Attempts to reach a representative for property management firm Milbank Real Estate, or First National’s Los Angeles-based attorney, David Neale, were unsuccessful Monday.

The partnerships First National Building I and First National Building II, both associated with Los Angeles-based Milbank Real Estate, bought the First National Center in 2006 for $21 million.

The First National owners filed for Chapter 11 after Capmark Bank attempted to foreclose on the property and appoint a receiver to take over operations at the downtown center.

[Pete]

So, the owners have to pay $12 million and clear the mortgage or the building goes into receivership.

Either way it looks like this situation will finally move off dead center.

[john60]

What is Milbank's financial status as a whole? Does the company have any cash to move over to do any portion of the intended renovations? Or are they trying to sell, and if they are, can they find a buyer who is interested in taking this project on?

[Pete]

Virtually all their other properties are bankrupt so I can't imagine how they are going to come up with $12 million. Basically, CapMark is saying we'll write off the full $21 million if you pay us $12 up front.

I just don't see how that is going to happen and probably the best thing is it won't happen, the bank will finally gain control and ultimately a new owner can be found.

[UnFrSaKn]

Settlement reached in First National Center bankruptcy

BY STEVE LACKMEYER slackmeyer@opubco.com
Published: March 7, 2012

A two-year foreclosure and bankruptcy battle between owners of First National Center and their lenders may be coming to an end with a joint settlement filing that would allow claims in the case to be dismissed for $12 million.