Preftakes Block

[kevinpate]

Pete, I don't like the code that defeats all caps. I use caps very judiciously. When I want to use them, it is because I want people to KNOW that I am shouting...

Thought that was why we had this

[Urbanized]

Haha

[Plutonic Panda]

But we demand to know what it is right now!!

lol

[Plutonic Panda]

It's convoluted because I don't believe the is simply a businessman making business decisions.

I think/know that Devon is bankrolling him because they want to see that property developed in a way that is compatible to their adjacent campus, and perhaps for their own expansion.

Devon didn't build their current complex as an investment; they did it to consolidate employees, improve downtown, enhance their public image, help the community, etc.

So, this isn't just profit and loss because if it was he couldn't be just eating a million dollars a year in taxes with no revenues.

I agree this seems to be very complicated, but to me if he is sitting on this property that is costing him tons of money, it would only seem he has something pretty significant planned here unless he just isn't all there and holds onto it like a cherished memory or something. I mean, if you connect all the dots, what other options are there for here?

[Pete]

Because of the large investment, in order to make any return it's almost certain a good chunk of the existing buildings would have to give way to bigger buildings.

That is, unless Devon wants to be benevolent and renovate a lot of them without the expectation of making the investment back.

[Spartan]

So, in essence, spending over $20M to do nothing with these properties over the last seven years? That doesn't sound like he's just speculating. That much investment, to me, points towards some end goal.

Nobody is denying that he obviously possibly maybe probably has plans. But the entire block has been in steep decay and decline for the last 6-7 years that he has been consolidating ownership.

[Pete]

[bombermwc]

I've been wondering if he thought he would have an inside edge for OG&E's new building, but it ended up working out later for Stage Center instead. If that's the case, he's stuck with a block of prime land that's going down the crapper.

[Pete]

I know someone involved in the site selection process for OG&E and was told they never considered this block.

[HangryHippo]

I know someone involved in the site selection process for OG&E and was told they never considered this block.

This is extremely frustrating. What in the world is he doing then? Sitting on land like this should be unacceptable. There were viable businesses in this block that he kicked out and for what? It's ridiculous that this is block is now like this.

[OKVision4U]

I've been wondering if he thought he would have an inside edge for OG&E's new building, but it ended up working out later for Stage Center instead. If that's the case, he's stuck with a block of prime land that's going down the crapper.

so who is the most logical (tenant) for Preftakes?

[Bellaboo]

so who is the most logical (tenant) for Preftakes?

The guess is a Devon overflow building....... some year.

[Pete]

Yes, Devon expansion.

Plus housing or a hotel in One North Hudson, a renovated bus station and like a parking structure along Sheridan.

[Urbanized]

It's possible (even likely) that he needed possession of ALL of the properties before he can execute his master plan for the site. The bus station vacated only a few weeks ago. As has been pointed out, there are still remaining tenants in other buildings who have been given firm relocation deadlines. Sometimes you have to break a few eggs to make an omelette, and development on the scale that I'm sure we're all hoping for takes time.

I'm not defending homeless people sleeping in doorways, but I think it is OK that the buildings have been vacant during assembly of the properties. I suspect that we will see something very soon on his plans.

[HangryHippo]

It's possible (even likely) that he needed possession of ALL of the properties before he can execute his master plan for the site. The bus station vacated only a few weeks ago. As has been pointed out, there are still remaining tenants in other buildings who have been given firm relocation deadlines. Sometimes you have to break a few eggs to make an omelette, and development on the scale that I'm sure we're all hoping for takes time.

I'm not defending homeless people sleeping in doorways, but I think it is OK that the buildings have been vacant during assembly of the properties. I suspect that we will see something very soon on his plans.

I appreciate your reasoned post. I hope you're right about the last part.

[OKVision4U]

Yes, Devon expansion.

Plus housing or a hotel in One North Hudson, a renovated bus station and like a parking structure along Sheridan.

thank you Pete. The Concord on the east side of the Devon Tower and a newly rennovated "Black Hotel" @ One North Hudson on the west side? ...w/ an overflow building of ( 20 - 30 stories?) It would frame things up nicely. ...I like it.

[Pete]

I don't think anything is imminent here.

Absolutely zero activity, they just re-boarded the properties along Main, the two existing tenants in One North Hudson are being allowed to stay at least until the summer.


But here's a juicy bit of information: I was told by someone with connections to Pickard Chilton (Devon architects) that they are working on a second building for Devon of about half the size. However, I believe it's all very preliminary.

That building would almost have to go on the SW corner of Main & Hudson (Carpenter Square, et al).

[Urbanized]

so who is the most logical (tenant) for Preftakes?

My guess is Devon leased space combined with spec office plus hotel and/or housing. I think Devon needs room to expand/contract outside of their own building based on commodity prices and other factors, room for partners and suppliers close by.

Considering the current investor climate, they can't build it themselves or they will risk the perception that they planned poorly for growth when building their headquarters OR that they are being extravagant (in a market that investors are indifferent about). Therefore, it makes sense for them to lease space. And with a tenant like that, it makes sense for a developer to build.

[Urbanized]

I don't think anything is imminent here.

Absolutely zero activity, they just re-boarded the properties along Main, the two existing tenants in One North Hudson are being allowed to stay at least until the summer.


But here's a juicy bit of information: I was told by someone with connections to Pickard Chilton (Devon architects) that they are working on a second building for Devon of about half the size. However, I believe it's all very preliminary.

That building would almost have to go on the SW corner of Main & Hudson (Carpenter Square, et al).

By "very soon" I meant within the next year, which is in reality but a blip, though it might seem like an eternity to those of us who are obsessing on downtown development. I think the key bit of information is the deadline given to tenants. I would expect things to start moving (information, not bulldozers) within a few months of that date.

[Pete]

I will say that with Devon at least partially behind this whole block that we can be guaranteed things will be done right.

And I also believe that with 21c drawing more attention west and the OG&E Tower to the south, there will be pressure and incentive to get things going here.

[OKVision4U]

I will say that with Devon at least partially behind this whole block that we can be guaranteed things will be done right.

And I also believe that with 21c drawing more attention west and the OG&E Tower to the south, there will be pressure and incentive to get things going here.

Yes, we are so fortunate to have serveral "civic leading" energy companies that set the bar in DT real estate. The other private groups should be in a great postion to build to that standard.

I don't see why they would wait at all, this area is hot.

[jccouger]

Take it for what its worth (not a lot), but I've heard from people inside of Devon that they are planning an aggressive expansion in the coming years. Money is money, and they have a lot of it. They want to start turning that money in to assets and investments.

[PhiAlpha]

Don't forget about Devon's MLP in Dallas. I don't know how likely it would be, but they could be planning on bringing it to OKC eventually. Right now, with the office space situation downtown, it might not have been a good scenario for them.

[OKVision4U]

Don't forget about Devon's MLP in Dallas. I don't know how likely it would be, but they could be planning on bringing it to OKC eventually. Right now, with the office space situation downtown, it might not have been a good scenario for them.

we have more demand than supply, ...so why aren't we building?

[Spartan]

I will say that with Devon at least partially behind this whole block that we can be guaranteed things will be done right.

And I also believe that with 21c drawing more attention west and the OG&E Tower to the south, there will be pressure and incentive to get things going here.

If historic preservation isn't key to their plans then things AREN'T going to be done right. It's that simple.