First National Center

[Pete]

Yet ANOTHER extension. This saga is wearing me out.

And of course, the current owners lied when they said they already had the new loan lined up, if they just released them from bankruptcy.


I suppose Capmark would rather have $12 million than the property back but I'm sure even they aren't optimistic; more like give then another month and hope.

[Vito]

Yeah, I'm pretty sure no lender would want to take possession of FNC. Sad but true. I really doubt if the building is worth $12 million. Probably in the $6 to $9 million range, I've been told by several knowledgeable folks; and if that's the case, who is going to lend more than the market value to a shaky borrower with a terrible reputation? Well, it just takes one foolish lender. As much as I love the old building, I'm beginning to admit it might be beyond saving, though I haven't totally given up hope yet.

[Pete]

Best hope is for Milbank to be removed from the picture, the center goes into receivership and the bank auctions it off at a far more reasonable price; certainly well below $10 million.

The bank knows they would never get close to the $12 Milbank is hoping to scrounge up, so they are willing to hold out hope. Otherwise, they are sure to lose millions.


But it would be best for OKC to get this property into a developers hands who bought it right. I wonder if Rick Dowell might be interested.

And maybe the City can get involved by allocating parking spaces for the soon-to-be expanded Century Center garage.

[Vito]

Pete, All good points. Of course, the purchase price is just the beginning. Whoever gets it will have to spend maybe $15 to $25 million to bring the building back. At least that range is what I've heard. What do you think of that range? Reasonable?

[Pete]

The good news is that Milbank already abated all or at least most the asbestos and did some other mechanical improvements. Also, Devon put a bunch of money into the space they have been occupying but are now in the process of vacating.

Remember that the tower itself is not even half the square footage in this complex and the rest of it was built much later, with larger floorplates and without the restrooms-between-the-floor configuration.

Here's what I think would be a workable solution and best use of the property:

• Demolish part of the newer section and replace with multi-story parking structure; keep all the retail at ground level. -or- Work with the City to get plenty of dedicated parking in the Century Center garage.
• Convert the tower into a hotel (Grand Banking Hall as a lobby) with possible residential above that.
• Remodel the remaining newer sections into nicer office space.

The conversion of the Colcord to a hotel and the relative success of the City Place condos provide a good roadmap to success, but dedicated parking is a vital component. If new owners can get that squared away -- and the city is probably very willing to help at this point -- then that, along with a reasonable purchase price and a resurgence of downtown could make FNC a very attractive investment opportunity.

[Vito]

Makes sense to me. Now let's go find some real estate people with big bucks and convince them.

[OKCRT]

So how many hotel room would this building hold? New CCH? Is this a possibility?

[Oil Capital]

Yet ANOTHER extension. This saga is wearing me out.

And of course, the current owners lied when they said they already had the new loan lined up, if they just released them from bankruptcy.


I suppose Capmark would rather have $12 million than the property back but I'm sure even they aren't optimistic; more like give then another month and hope.

Perhaps you know something that was not reported in the Oklahoman. The Oklahoman (in the article linked earlier in this thread) reported that they said they would not be able to line up a line with the property in bankruptcy. It did NOT report that they said they had a loan lined up.

[Oil Capital]

The good news is that Milbank already abated all or at least most the asbestos and did some other mechanical improvements. Also, Devon put a bunch of money into the space they have been occupying but are now in the process of vacating.

Remember that the tower itself is not even half the square footage in this complex and the rest of it was built much later, with larger floorplates and without the restrooms-between-the-floor configuration.

Here's what I think would be a workable solution and best use of the property:

• Demolish part of the newer section and replace with multi-story parking structure; keep all the retail at ground level. -or- Work with the City to get plenty of dedicated parking in the Century Center garage.
• Convert the tower into a hotel (Grand Banking Hall as a lobby) with possible residential above that.
• Remodel the remaining newer sections into nicer office space.

The conversion of the Colcord to a hotel and the relative success of the City Place condos provide a good roadmap to success, but dedicated parking is a vital component. If new owners can get that squared away -- and the city is probably very willing to help at this point -- then that, along with a reasonable purchase price and a resurgence of downtown could make FNC a very attractive investment opportunity.

I like the hotel idea. That could be an amazing hotel.

[Pete]

Perhaps you know something that was not reported in the Oklahoman. The Oklahoman (in the article linked earlier in this thread) reported that they said they would not be able to line up a line with the property in bankruptcy. It did NOT report that they said they had a loan lined up.

"Attorneys for Yashouafar also told Jackson he has obtained a pre-approval for the take-out financing pending the approval to end the bankruptcy."

Read more: http://newsok.com/first-national-cen...#ixzz1vyr2BrUT

[Oil Capital]

Duplicate post. sorry.

[Oil Capital]

"Attorneys for Yashouafar also told Jackson he has obtained a pre-approval for the take-out financing pending the approval to end the bankruptcy."

Read more: http://newsok.com/first-national-cen...#ixzz1vyr2BrUT

"Pre-approval" is almost meaningless in the lending world. If anyone put any significant weight on that statement, they deserve what they got.

[Pete]

"Pre-approval" is almost meaningless in the lending world. If anyone put any significant weight on that statement, they deserve what they got.

You might want to try: "Sorry for being a bit rude before. I was mistaken... Thanks for politely providing the information and clearing that up."

[Vito]

Pre-approval is not meaningless, especially if it is specifically contingent on a condition (such as dismissal of a Chapter 11), as Yashouafar said this pre-approval was (according to the story quoted). The condition (dismissal of the Chapter 11) was satisfied, and yet the loan approval was not forthcoming. Yashouafar misled the court and Capmark, the lender. The only reason this doesn't matter much is because Capmark doesn't really want the property, so it's willing to give Milbank some more time.

[Just the facts]

I got a letter in the mail from one of our local car dealerships saying I had been pre-approved for a new car loan. In the fine print were the conditions for the pre-approval; 20% down, 6 months of previous employment, good credit, a quality trade-in with less than 60,000 miles, and no bankruptcy. The moral of the story is - pre-approval doesn't mean anything because the second I don't meet one of the qualifications the 'pre-approval' is off.

[Spartan]

I'm rooting for Chapter 11 as much as anyone else here, the sooner Yash leaves the picture, the better for the FNC. That said, pre-approval is not worthless..it unfortunately answers one of the biggest questions that linger over Yash's dealings here. If he wasn't to offer up pre-approval, what evidence would he offer?

If it were my way, this dude would have the book thrown at him and the system would revert to guilty until proven innocent, but unfortunately these dealings have to go through that pesky legal system we have..

[Just the facts]

If 'pre-approval' meant he already had been approved then where is the money?

[Vito]

An unsolicited "pre-approval" from a car dealership is quite a different thing from a multi-million dollar commercial loan transaction negotiated by bankers and lawyers The car loan is a marketing gimmick. A negotiated pre-approval by a mortgagee subject to satisfaction of a specific condition is a more sophisticated, and binding, transaction. And as to where the money is: I think you'd come up with the answer to your own question if you'd think about it -- that the loan has not come about means Milbank never had the pre-approval in the first place, which was Pete's point above. Just out of curiosity -- how many commercial loan transactions have you been involved with, JTF?

[Just the facts]

I was only making the point that 'pre-approval' doesn't mean anything. If it did, he would have the money.

You can get a pre-approved commercial loan just by filling out this form - even if you have bad credit. It doesn't mean you are going to be happy about the downpayment, interest rate, or other terms they offer you AFTER you meet their qualifications for the pre-approval

http://loan-solution.com/borrowers/b...loan_form.html

Borrower Loan Pre-Approval Form
Need a commercial loan and have bad credit?
Please take a moment to fill out our pre-approval form so that we can assist you.

[Spartan]

Kerry, I can assure you that the bankruptcy court will not care how happy Yash is with the terms of his credit lines.

I propose that this one we just sit out..there is no public recourse mechanism, arguing up a storm on OKC Talk will make no difference, this is in a court of law. I understand we'll find out pretty soon, or in roughly the same amount of time to fill up 10 pages of flame wars on both sides of the issue, so perhaps everybody should save their energy here for other more interesting debates and just wait and see what happens here.

Hopefully the bank takes over the property and it winds up in the hands of a receiver with local ties - the asking price needs to drop significantly and it needs to wind up in local hands. Then the city may be able to orchestrate some public financing deal before the Skirvin mortgage expires, but that will be difficult due to that prior obligation.

[Vito]

Without getting deeper into the details of pre-approvals and what a pre-approval would have looked like in this particular commercial loan situation (it would not have been one of the gimmicky, sales-oriented pre-approvals that are, as you rightly point out, very common and very worthless), let me say this: I don't think Milbank had a pre-approval, a conditional approval or an approval of any kind when it approached the plaintiff and the judge seeking a dismissal of the Chapter 11. If it had, Milbank would now have the money. The plaintiff, unfortunately, probably didn't press the matter very hard because it does not want the property. It is more than willing to let Milbank delay longer. Anyway, thanks for the exchange. Now let's hope that eventually the plaintiff tires of this game and (reluctantly) takes possession of FNC. Thanks.

[Just the facts]

Then the city may be able to orchestrate some public financing deal before the Skirvin mortgage expires, but that will be difficult due to that prior obligation.

The City does have the $5 million they pledged to the AICM, although I don't know where that money came from. If Milbank lied to a federal judge I wonder what kind of penalty that would bring.

[Bailey80]

Price Edwards would handle the receivership. That has already been decided in court. From what I've seen, they do a pretty good job with the properties they handle as receivers. I think it is going to take public money to see any redevelopment happen there.

[Spartan]

The city will need to come up with a lot more than $5 million.

I think that the idea of using the FNC as the CC hotel has gained traction. Two birds with one stone.

[bluedogok]

I think it needs to be a boutique hotel like The Magnolia hotels in Houston, Dallas and Denver are. Most "true" convention center hotels are much larger and tend to be a bit generic (in comparison). Most convention centers need more rooms than the designated hotel for large conferences anyway. People tend to stay in hotels in the area of a convention center, not just in the one attached to the conference center. I know that I have and haven't stayed in designated hotels for conferences before, sometimes due to a lack of rooms and sometimes the room cost.