Chesapeake empire marches on

[The Old Downtown Guy]

Chesapeake is just finishing up on their seventh new on-campus building as well as a parking garage located to the east across Classen and they have seven or eight more buildings in various stages of construction and on the drawing board staged over the next few years as their growth continues. Most of this new construction activity will be east and adjacent to their existing campus and not crossing 63rd to the north. The have also purchased three or four other nearby office buildings that they are remodeling and moving in to as the existing tenant's leases expire.

They are a powerful force for growth but there is a potential for some negative impact as they expand their campus and become more of a player in real estate development that isn't directly related to their energy business. Every thing they do, will be done well but the certainty of great change in the area is a bit scary for sure.

[Pete]

If nothing else, they are adding serious density to an area that had until recently been a few little scattered businesses and small houses.

The map I posted does not show all the property they own north of 63rd, as there is quite a bit north of 67th as well in addition to the 10 or so larger tracts I illustrated. Most if it is along Classen and not Western, so that would indicate it would probably not be retail oriented.

And as the crow flies, the property they own north of 70th is more than a mile away from their holdings along I-44. They now own the large majority of what is almost a square mile in that part of town

[Pete]

Was really glad to see this news... This swim club has been around for decades and is currently very strong. I've known lots of kids that have gone through this program and it's a real asset to OKC. Thanks to Chesapeake for stepping up; just one of many great gifts to the city:




Swimming: Chesapeake now club's sponsor


By Matt Patterson
Staff Writer

One of the nation's most successful swimming clubs has a new sponsor.

Chesapeake Energy officially took over sponsorship of the Kerr-McGee swim club Thursday during a ceremony at Chesapeake's headquarters. Kerr-McGee had sponsored the swim club for 43 years, but its commitment ended when the company was sold late last year.

The club began in 1956 when the only available pool to the Oklahoma City swim club was located in the basement of the Kerr-McGee Center. Swimmers trained there for several years until the company took over sponsorship in 1963. Today, about 240 swimmers are part of the club.

"Their commitment picks up where Kerr-McGee left off after 43 years,” coach John Brown said. "Chesapeake taking the sponsorship allows us to continue to help athletes achieve their goals.”

Money from the sponsorship goes to pay for a variety of expenses.

"We're able to keep our fees low,” Brown said. "It also helps us with travel and it helps us maintain a professional coaching staff.”

Kerr-McGee has won 16 state championships and produced a number of swimmers who went on to excel. Trip Zedlitz began swimming with Kerr-McGee at age 6, and went on to earl gold medals in the 1989 Olympic Festival. Zedlitz also swam at Stanford University.

"It was a natural and exciting extension of the commitment to support one of the most accomplished swim clubs in our nation,” Chesapeake Energy CEO Aubrey McClendon said. "We thank Kerr-McGee for the years of supporting some of Oklahoma's finest athletes and scholars. We also applaud the members of the new Chesapeake Swim Club for their years of dedication and commitment to the sport and look forward to a winning partnership.”

[Pete]

Wow, they really must be running out of space on their campus.

*******************


OKC’s Chesapeake Land Company purchases IBC Bank headquarters building



Pamela Grady
4/17/2007

Price Edwards & Company announced today Chesapeake Land Company LLC has purchased the Oklahoma headquarters building of IBC Bank located at NW 63 and Lake Hefner Parkway for $5.4 million.

Built in 1980 and renovated in 1998, the 70,000-square foot property contains nearly 11 acres that provides the potential for future development.

The transaction also included a lease for IBC Bank to remain in approximately 36,000 square feet in the lower level and first floor of the building.

Chesapeake will occupy the top two floors of the building. IBC Bank was the sole tenant at time of sale.

Craig Tucker and Cordell Brown of Price Edwards & Company represented IBC in the sale. Capitol Abstract handled the closing.

[jbrown84]

They really need that office space? Wow. Build a tower downtown already.

[Pete]

It could be this is more of an investment for future development, what with the adjoining 11 acres.

They may just be planning to house employees there until they finish more construction.

But it seems they can't build enough 3-5 story buildings to keep up with their office needs. And as previously mentioned, even on their core campus these buildings are starting to be pretty spread out.

Past a certain size, a low-slung office park ceases to make sense, as it becomes too much of a chore to move from one building to others without a car. In the Silicon Valley, they often have loaner bikes scattered around their bigger one-company developments, but I don't see that happening at 63rd and Western, especially across busy streets.

If anything, they should consider moving a good deal of the surface parking (still tons of it between most the buildings) below ground or to a nearby structure and infill those areas with more offices.

[jbrown84]

They are already building a parking garage. I'd like to see more parking garages and some of that surface parking replaced with taller midrises.

[Pete]

I realize they are building a parking structure but all the new construction is on the periphery of the current development. They are building out concentrically which means the far ends of the campus are continuing to be further and further apart.

It's simply not efficient -- or realistic -- to have people walking half a mile through all types of weather to go to a meeting. The whole point of such a development is synergy and I'm sure that's already breaking down due to the sprawl.

[jbrown84]

A friend of mine knows the owners of Crescent Market and they told her that Chesapeake plans to tear down the south (older, cooler) section of Nichols Hills Plaza and build an office building with ground floor retail.

I really hope this isn't true.

[Patrick]

A friend of mine knows the owners of Crescent Market and they told her that Chesapeake plans to tear down the south (older, cooler) section of Nichols Hills Plaza and build an office building with ground floor retail.

I really hope this isn't true.

That would be a tragedy.

[john60]

I've heard somewhere that they actually plan on keeping it as a shopping district--maybe with lofts or office on upper floors, but definitely a strong retail presence on the ground. I think there was a long range plan done--called Nichols Hills 2020 or something like that....I could not find it, but I remember seeing it a few months back either in the Oklahoman or online somewhere.

I think completely revamping nichols hills plaza may be in everyone's best interest. Right now it has some pretty weak tenants compared to what a brand new plaza could have. Nichols Hills Plaza has the potential to be a Utica Square (or better, like Highland Park Village in Dallas), but it can't be that right now. In its current physical state, there is absolutely no way it can draw top-notch retailers. I dont know how bad that would be if Chesapeake/McClendon/Nichols Hills...whoever owns that place built a really incredible NEW Nichols Hills Plaza--I think the potential there is HUGE, and maybe its not a horrible thing to move on.

[John]

Whatever Chesapeake does with Nichols Hills Plaza will for sure be for the better...

The reason they bought it was to have a say in the quality of tennant and to keep it up to date. More of a quality of life issue for the company and it's employees and the surrounding residents.

[Pete]

It is true that that is the one area of town that could support a Utica Square type development. It's never going to happen in Edmond or Norman.

However, we can't all just assume whatever CHK does is going to work out great. The area is already unique and has character -- one of the few in town. They need to be very careful and are not experienced retail developers. Even if their intentions are good, I'm going to get very nervous if they change too much more in that area.

They've already driven out some retail and restaurants in favor of office space.

[jbrown84]

Nichols Hills Plaza has the potential to be a Utica Square (or better, like Highland Park Village in Dallas),

Yeah, so lets just bulldoze the thing. You know, because it could use a little paint maybe, or some new awnings, but that would be such a waste. BRING IN THE WRECKING BALL. This area is completely lacking in charm and character like Utica Square. We gotta start over with some nice, gleaming EIFS.

[CuatrodeMayo]

Do not dare to speak of the evil building material in my presence. That crap is the WalMart of building materials. The world would be a better place were it not for styrofoam buildings.

Preservation, people, preservation...unfortunatly in OKC newer buildings are not always better buldings. Use what is there.

[jbrown84]

Preservation, people, preservation...unfortunatly in OKC newer buildings are not always better buldings. Use what is there.

Thank you! I can't believe there is anyone here in favor of tearing it down to build an office building with some ground floor retail.

[Patrick]

I'm with you jbrown. I think tearing down Nichols Hills Plaza would be a tragedy.

[CuatrodeMayo]

Here is some NC masterplanning ideas from the inferior school of achitecture in Oklahoma.

City of Nichols Hills - 2020 Comprehensive Plan Concepts

[jbrown84]

I like that concept of infilling the parking lot with additional buildings, but there is NO reason to tear anything down.

[Pete]

Chesapeake Energy leases 30,000 square feet of additional office space



Chesapeake Energy Corp. will be leasing 30,000 sqaure feet of office space in the Lakepointe Towers. Photo/Shannon Cornman

Pamela Grady
5/23/2007

Price Edwards & Company confirmed today Chesapeake Energy Corporation has leased two full floors at Lakepointe Towers, 4013 NW Expressway.

The 30,000-square foot space will house additional employees not located at Chesapeake’s corporate campus in the NW 63 Street and Western Ave. area.

Craig Tucker of Price Edwards & Company negotiated the transaction on Chesapeake’s behalf.

The transaction was finalized 16 days after the initial building tour.

James F. Cotter owns Lakepointe Towers.

[Patrick]

Sounds like Chesapeake can't build the buildings fast enough on their own campus.

[John]

I was amused while looking over my Annual Report from CHK at the listings of hirings from 1989 to now.

Pretty impressive for a company that started out with 4 people.

I still think they could build a tower downtown to house certain divisions of the company. They're already spread out across the city. Keep building up the main campus, but when you add upwards of 2000 employees a year (as was the case in '06, you can't build fast enough...

[metro]

Maybe they're trying to cannibalize the suburban market and eat up all the vacant space so the only quick option for others is downtown?? Like others, I sure wish Chesapeake would just build a tower, they definitely have the money unlike other companies. I guess we'll find out sooner or later.

[Pete]

Thu June 28, 2007
Chesapeake buys out longtime cafe holdout

By Trisha Evans
Business Writer

The Subway restaurant near NW 63 and Western Avenue in Oklahoma City no longer is a thorn in the side of Chesapeake Energy Corp.


The lone holdout on the energy company's development along NW 63 closed last week.

"There was a gentleman that made a lot of money, and he is going to relocate his Subway to another location with his pockets full of money,” said Tom Price Jr., senior vice president for corporate development.

Price said the company bought out the lease but, citing a confidentiality agreement, refused to disclose how much Chesapeake paid.

"There are other people in the area that we make deals with too, and we don't want for that to set the trend for all subsequent deals,” he said.

The offer to buy out the sandwich shop's lease has been on the table for several months, he said.

"We'd gone back and forth. ... He wanted us to pay him over and above what we had to pay to Subway. We tried for some time to find a point of equilibrium, and I think we've found the point.”

Subway franchisee Yogesh Mangu refused comment.

Price estimates the building will be torn down within the next month.

Another nearby restaurant also served its last meal this month. Longtime Oklahoma City eatery, The Original Varsity Sports Grill, 1120 NW 63, closed June 2.

The restaurant had been open for 19 years.

Chesapeake in 2005 bought the Glenbrook Centre East building where the restaurant was located.

Price is unsure why the restaurant closed but said it wasn't forced to leave.

[metro]

I'm actually glad that Subway was bought, it was an eyesore as well as the whole shopping center that used to be there. I think in the end, we'll be happy with most of the Chesapeake developments.