Chesapeake empire marches on

[Pete]

Chesapeake -- under yet another new LLC -- purchased .7 acres for $2.5 million (about $3.5 million / acre) about two weeks ago. Total assessed market value: $220K.

This is for land around 57th and Lee, which interestingly enough is very close to the MidFirst property. CHK already owns almost everything else in that area.

Perhaps they are assembling the few final properties so they can acquire the MF property (building and a big chunk of land) that is adjacent?

[Dubya61]

"Funny" Texas Joke that may apply here:
There was a rich Texan that was buying up all the land he could. Eventually the news got wind of what he was doing and accused him of wanting to own all of Texas. "Fellas," he told the reporters, "I don't want to own all of Texas, I only want to own all the land that's adjacent to mine."

[TechArch]

Pete -
Do you know if Chesapeake or one of their LLCs owns the property just north of the correctional facility near Robinson and Grand? They did a lot of dirt work at this location and put in a retention basin in the middle.

[Pete]

Pete -
Do you know if Chesapeake or one of their LLCs owns the property just north of the correctional facility near Robinson and Grand? They did a lot of dirt work at this location and put in a retention basin in the middle.

No, that's not owned by Chesapeake.

Not sure what is going on there.

[TechArch]

I just thought it might be Chesapeake since the property was bought, trees were torn down, a large amount of fill was added to the site, and now there is a retention basin for a large site. It just sounded like something Chesapeake would have the money to do.

[metro]

I wish CHK would have bought the low security correctional facility and had it moved,you'd think they'd want it out of their backyard considering the purchases they've made.

[CaptDave]

I wish CHK would have bought the low security correctional facility and had it moved,you'd think they'd want it out of their backyard considering the purchases they've made.

That is an interesting question - what would it take for a private entity to "buy out" a state facility? Is it possible? It is basically "reverse imminent domain".

[Pete]

I know Chesapeake has been trying to buy the Juvenile Correction Center on Western for years.

I would think it's a simple matter of making economic sense for the state entity, i.e. being paid enough to be able to relocate to a different facility and put some money in their pocket.

[Pete]

Today, I noticed the Glenbrook West building (on the SE corner of Grand & NW 63rd and just west of the other large office building that was demolished a couple of years ago) is now almost if not completely empty.

The doors were unlocked and the lights were on but there were zero tenants on the ground floor, where just about five months ago several of the suites were full. It looked like there might be just one straggling tenant left on the upper floors.

Expect CHK to demolish this structure very soon.

[OKCTalker]

I know Chesapeake has been trying to buy the Juvenile Correction Center on Western for years.

I would think it's a simple matter of making economic sense for the state entity, i.e. being paid enough to be able to relocate to a different facility and put some money in their pocket.

I heard that the discussions involved the corrections people identifying a replacement site, having CHK buy it, buiding the new facility, and then swapping. That takes a lot of people, a lot of money, and a lot of time. I can see why it didn't get done.

[Pete]

From what I am hearing and seeing, I think Chesapeake is starting to shut down their crazy real estate machine.

Firstly and as I posted on the Mystery Tower thread, it looks like they are no longer actively seeking the MidFirst properties along I-44 AND plan to consolidate a lot of their employees back to the main campus when buildings 1, 14, 15, the RTC lab and the Data Center are complete. They will be opening a ton of new square footage (along with two new parking structures) in the next year, as most these buildings are well larger than anything they've built before and of course, they are selling assets and down-sizing. So, look for them to move staff out of the Caliber Center, Atrium Towers, etc. It will be interesting to see if they lease or sell those buildings. I'm sure they will hold them for at least the short-term.

Second, I've heard that they may not be going forward with the Nichols Hills Plaza grocery store (see that thread for photos) and are now looking for someone to operate it for them. Also, the idea of swapping the $10 million church they acquired for NH City Hall has gone very quiet.

Third, after all the hassling with citizens and the planning commission, the project at 50th & Western may be off as well. They already have a CNG station there, which under the current plan would be completely removed for a big convenience / gas store, along with some other commercial space. They were to brand this new store "Peake" but this may be a case of the new board not wanting them to start up yet another completely new business.

Fourth, the expansion at Classen Curve hasn't commenced. They have all the approvals and the homes have been demolished, so this may or may not be related to a slow down.

Fifth, I didn't see any activity at the proposed Pops location in Bricktown. Although this is an Aubrey project and not CHK, perhaps there has been a change of heart in light of the new board's pressure to focus on Chesapeake core businesses.


Not surprising if the Chesapeake gravy train is finally at least slowing down, and that certainly seems to be what is happening.

[HangryHippo]

1) Do they have enough space, even with the new buildings about to open, to consolidate all their employees at their campus? This is a real letdown because I was really hopeful that MidFirst would make the move downtown. Really too bad they didn't take CHK's offer when they had it.

2) This is not that surprising at all. It never made any sense to begin with, but it's a damn shame they drove out everything that was there and now things seem to be in a lurch.

3) While understandable, this is disappointing. I thought this would be cool.

4) Not surprising either. Too bad it wasn't designed better from the start. I don't know that it would have made any difference, but maybe they could have added some housing and made it more of a sustainable area.

5) This is really disappointing. I thought a Bricktown Pops would do very well and will be bummed if it doesn't happen.

Does Chesapeake get this all turned around eventually and emerge stronger or do you think they're destined to be bought out and exported to Houston?

[Skyline]

I noticed that the 50th & western "Peake" has been fully sodded with grass, when before it had been graded for site const.

[OklahomaNick]

They are obviously going to have to sell Caliber Center & Atrium Towers for a deep discount for what they paid for them!
But I assume the new and more conservative management will want those off the books.

Any companies that didnt sell to CHK is sure going to regret it because as you said.. I think the gravy train is slowing down too.

[Pete]

1) Do they have enough space, even with the new buildings about to open, to consolidate all their employees at their campus? This is a real letdown because I was really hopeful that MidFirst would make the move downtown. Really too bad they didn't take CHK's offer when they had it.

2) This is not that surprising at all. It never made any sense to begin with, but it's a damn shame they drove out everything that was there and now things seem to be in a lurch.

3) While understandable, this is disappointing. I thought this would be cool.

4) Not surprising either. Too bad it wasn't designed better from the start. I don't know that it would have made any difference, but maybe they could have added some housing and made it more of a sustainable area.

5) This is really disappointing. I thought a Bricktown Pops would do very well and will be bummed if it doesn't happen.

Does Chesapeake get this all turned around eventually and emerge stronger or do you think they're destined to be bought out and exported to Houston?

1. The buildings under construction total almost 800,000 square feet and what they have completed on campus (including the Grand Park buildings near I-44) is about 1,200,000 s.f. So, they are almost going to double their campus capacity within the next year. Among all the off-campus buildings that hold their employees, most are not exclusively for Chesapeake, as they inherited lots of existing leases. So, yes, I think they can accommodate almost all their employees when their new buildings are complete, especially with all the recent and proposed asset sales.

2. Yes, I was always wary of this new grocery store and now the expulsion of Crescent and the lunch counter looks especially bad.

3. Not 100% sure the 50th & Western thing is dead, but it's starting to look like that is a distinct possibility. Perhaps they just get On Cue to develop it themselves.

4. Nobody has told me the expansion at CC is off, but I find it suspicious nothing has happened there since obtaining all the approvals. And of course, there is still a decent amount of vacancy in the existing sections.

5. I haven't heard Bricktown Pops (sounds like an orchestra!) is off, just speculating it may be another casualty.


And as to the final question about CHK getting turned around, that seems to be happening now. I'm sure we can all agree the most important thing is that they stabilize and continue to be a big employer in OKC. From all indications, it looks like they are getting their act together.

[Pete]

BTW, we all knew the day would come when Chesapeake would be jolted back to reality.

For years, I feared it would happen before they could start putting things back, after chasing out scores of restaurants and businesses around the once-thriving -- if a little ragged -- 63rd & Western area.

No matter what happens now, at least we have a Whole Foods, Anthropologie, and everything in Classen Curve. If the crap had hit the fan a few years ago instead of just recently, OKC would have been left with a huge scar.

Looks like we'll come out of this okay unless CHK completely implodes or is sold and moved, but for goodness sake, we keep putting ourselves at the mercy of these massive and risky real estate schemes and frankly, we're just darn lucky this didn't turn out much worse -- at least, thus far.

[jn1780]

BTW, we all knew the day would come when Chesapeake would be jolted back to reality.

For years, I feared it would happen before they could start putting things back, after chasing out scores of restaurants and businesses around the once-thriving -- if a little ragged -- 63rd & Western area.

No matter what happens now, at least we have a Whole Foods, Anthropologie, and everything in Classen Curve. If the crap had hit the fan a few years ago instead of just recently, OKC would have been left with a huge scar.

Looks like we'll come out of this okay unless CHK completely implodes or is sold and moved, but for goodness sake, we keep putting ourselves at the mercy of these massive and risky real estate schemes and frankly, we're just darn lucky this didn't turn out much worse -- at least, thus far.

The 63rd st boom is over, but we now have the downtown boom which by all indications should continue and pick up in intensity over the next few years.

[Snowman]

They are obviously going to have to sell Caliber Center & Atrium Towers for a deep discount for what they paid for them!
But I assume the new and more conservative management will want those off the books.

Any companies that didnt sell to CHK is sure going to regret it because as you said.. I think the gravy train is slowing down too.

Even if they want it gone they may want to write it off in either a very good or a very bad quarter so it would an insignificant a line item that does not draw attention

[Pete]

Remember that not only does CHK routinely pay way over market for these buildings, they also pump millions into renovations for their own use.

Generally speaking, in most the buildings they have acquired they have invested more than double the current market value.

[HangryHippo]

And as to the final question about CHK getting turned around, that seems to be happening now. I'm sure we can all agree the most important thing is that they stabilize and continue to be a big employer in OKC. From all indications, it looks like they are getting their act together.

I think this is the biggest thing to keep in mind. While their continual purchases at way over market value were troubling, it's equally troubling that they're not going to be able to replace all the stuff they kicked out. But honestly, the most important thing is that CHK gets things turned around and continues to be a large employer in OKC. Here's hoping they can.

[Pete]

Just remembered that someone (who I trust) told me that CHK has cut way back on their charitable contributions; perhaps even not honoring some previous commitments. So, that alone tells you something dramatic has changed.


I posted in the Local Business forum an article from Reuters describing the interest in CHK's 3Q numbers to be reported tomorrow. This is the first full quarter under the new board and everyone is anxious to see their impact.

[daddio]

Does any one know if the recent closing with Chesapeake's newest shell corporation (EAST CLASSEN PROPERTY DEVELOPMENT LLC) and the Maupin family is new business or just old business that is just now closing? The EAST CLASSEN PROPERTY DEVELOPMENT LLC/Berlin deal north of 63rd was an old contract

[Pete]

Does any one know if the recent closing with Chesapeake's newest shell corporation (EAST CLASSEN PROPERTY DEVELOPMENT LLC) and the Maupin family is new business or just old business that is just now closing? The EAST CLASSEN PROPERTY DEVELOPMENT LLC/Berlin deal north of 63rd was an old contract

Don't know but it would make sense given the big cutbacks at Chesapeake.

They have really reigned in their spending so acquiring all these properties for millions didn't make any sense. They seem to have put the brakes on elsewhere, except for the projects already under construction.

[daddio]

Thanks Pete.

[Spartan]

Does any one know if the recent closing with Chesapeake's newest shell corporation (EAST CLASSEN PROPERTY DEVELOPMENT LLC) and the Maupin family is new business or just old business that is just now closing? The EAST CLASSEN PROPERTY DEVELOPMENT LLC/Berlin deal north of 63rd was an old contract

Gary Berlin?