Chesapeake empire marches on

[Pete]

In that series of articles it also said that although it's unofficial, it's common knowledge that Nichols Hills Plaza, Classen Curve and just about all the Chesapeake properties not a part of their main campus are up for sale.

I'm also hearing good information that they plan to sell the two Grand Park office buildings along I-44 to MidFirst/Midland Mortgage and consolidate their employees into the new buildings in various stages of construction on their campus.

Just this year alone, they will complete space that will effectively double their campus square footage, while at the same time laying off employees, contractors and selling off even more billions in assets. I would expect Atrium Towers to be sold as well, just like they've already done with the recently purchased Caliber Center and Harvey Parkway.

I bet they will also be looking to dump those hundreds of properties north of 63rd and east of Western, the I-44/Grand/Western triangle, the properties at 50th & Western and Penn & NW Expressway and probably even the vacant lots that once were home to the two Glenbrook buildings, the Kensington apartments, etc., etc.

They own a few hundred million in OKC real estate that has nothing to do with their core business and it sounds like since the new board has taken over, they have expressed the strong intention to sell pretty much all of it.

[Pete]

By the way, the article states that Chesapeake is at least a partial owner in Republic.

I bet that's true of several other retailers and restaurants they moved into their properties... I know Aubrey personally bought a piece of Balliet's and Deep Fork.

[blangtang]

In the paper version of the business section of the DOK, every weekend there would be a full page ad from Chesapeake with pictures of about 50 new hires.

Does anyone know when that ended? I am trying to figure out when the 'peake' occurred.

[tillyato]

In the paper version of the business section of the DOK, every weekend there would be a full page ad from Chesapeake with pictures of about 50 new hires.

Does anyone know when that ended? I am trying to figure out when the 'peake' occurred.

Ended? They had a full page add with new hires in today's business section...

[blangtang]

Ended? They had a full page add with new hires in today's business section...

I suppose they could do that for years...appreciate the info and correction. complete cynic in me is waiting for when they take out a full page ad with pics to announce layoffs. wrong on this front I am apparently.

interesting-I have this company completely wrong. noted.

take note everyone they are still hiring and growing? for real?

I had a paper sub until about a year ago..

there are layoffs but they are still growing apparently?

one of you lurkers, please upload a pic of that "hi" thing mentioned in the newsok article. thanks i would love to see the design!

[Pete]

one of you lurkers, please upload a pic of that "hi" thing mentioned in the newsok article. thanks i would love to see the design!

[DoctorTaco]

take note everyone they are still hiring and growing? for real?

I had a paper sub until about a year ago..

there are layoffs but they are still growing apparently?

Hiring can happen concurrently with layoffs. The people you are laying off are not the ones you need, obviously, but that doesn't mean you don't need anyone. And it is not a straightforward thing to simply reassign a laid off landman to become a drilling engineer, for instance.

On that note, I noticed that none of the pics in yesterday's paper were landmen...

[ChargerAg]

[QUOTE=DoctorTaco;626377]

take note everyone they are still hiring and growing? for real?

I had a paper sub until about a year ago..

there are layoffs but they are still growing apparently?

QUOTE]

Hiring can happen concurrently with layoffs. The people you are laying off are not the ones you need, obviously, but that doesn't mean you don't need anyone. And it is not a straightforward thing to simply reassign a laid off landman to become a drilling engineer, for instance.

On that note, I noticed that none of the pics in yesterday's paper were landmen...

Why do they run the full page ad? Is it some way to try and keep the paper from doing negative reports?

[ljbab728]

The complete article by Steve and Briana is now available for nonsubscribers.

Unfinished business: Chesapeake, McClendon real estate developments incomplete as company leadership changes | News OK

I wonder if there is any significance to the fact that the original article had Steve's name first and newsok.com had Steve first. LOL

[Centerback]

Why do they run the full page ad? Is it some way to try and keep the paper from doing negative reports?

Really?!? I'm sure Steve appreciates that challenge to his journalistic integrity.

[Pete]

People at OPUBCO will tell you their last editor blocked plenty of stories about local businesses.

Until recently, The Oklahoman didn't even have (any, many?) staff reporting on the energy companies.

That has certainly changed under the new ownership and there is definitely more freedom, although they are never going to hit the local companies hard. No local papers do.

[Pete]

Looks like CHK is continuing to dump off-campus office properties:

"Chesapeake Energy is expected to continue shedding certain office properties in the next quarter. Atrium Towers at 63rd and Lake Hefner Parkway and the adjacent former IBC Bank building are reportedly under contract to sell to another locally headquartered company. That transaction, comprising over 200,000 square feet of space, is reported to be in the range of $20,000,000 to $25,000,000. Central Park I & II, containing approximately 237,000 square feet at Interstate 44 and Lincoln, is reportedly under contract to an out of state investor for a similar amount. It is unclear whether other larger corporately owned office assets might be sold in the coming years."

PEC Releases First Quarter Market Statistics - Price Edwards & Company - Price Edwards & Company


We'll wait to see the final sales price, but even at the high end of the projected range these amounts would represent significant losses.

[john60]

Did CHK buy back the office building on 63rd and Harvey? The first transaction listed in the article below shows that Chesapeake Land and Development recently bought it. This seems to be contrary to their other recent real estate transactions...

Oklahoma County Land Transactions for April 20 | News OK

[Pete]

Very strange reporting, as that deal was from 1/13/12!

Since that time, they sold it to the current owners.


Have no idea why this would be listed as a recent transaction; someone is confused.


Leonard Sullivan Oklahoma County Assessor Real Property Detail Sheet

[Spartan]

Wow this thread has been a fascinating read over the last few pages...

[warreng88]

Chesapeake Energy sells twin office buildings for $22 million

Company sells properties for $7 million less than it paid two years ago.

Chesapeake Energy Corp. has sold the twin Central Park office buildings near N Lincoln Boulevard and Interstate 44 for $22 million, taking a $7 million loss on the properties it purchased two years ago.

The six-story office buildings sold to the Florida limited liability company Central Park on Lincoln on May 1, according to property records. Chesapeake purchased the office towers in August 2011 for $29 million. Attempts to reach the buyer were unsuccessful on Wednesday afternoon.

Read the rest of Brianna Bailey's article at: Chesapeake Energy sells twin office buildings for $22 million | News OK

[Pete]

CHK not only paid $7 million more, they also put more than $7 million into them in the form of improvements.

With brokerage commissions they probably received well less than half their $36 million investment back just two years after purchase.

[Just the facts]

We might have to change the title of this thread.

[Pete]

Yes, should probably be changed to The Rise and Fall of the Chesapeake Empire.

[kevinpate]

yer left, yer left, yer left, right, ohhh, stubbed me toe.

[OKCTalker]

I don't recall reading this anywhere but it appears that a traffic circle is being poured on Classen Boulevard east of Western at 59th Street, just north of the county juvenile justice facility. I don't know enough about traffic circles but I wonder why the city decided that a circle was the best option to expedite traffic through there.

[CuatrodeMayo]

Technically, it is a roundabout. Traffic circles and roundabouts look similar, but work in very different ways. Lots about them here: http://www.okctalk.com/transportatio...boulevard.html

Modern roundabouts are great at moving traffic. Come spend some time at NW 10th and Walker and see for yourself.

[Pete]

I stole this recent aerial from Spartan's Instagram account and labeled it.

Red are buildings that have been finished / opened this year or soon will be. You can see it's a massive amount of new space, effectively doubling what they have on their main campus in a year's time. Combined with the sale of big assets and business units, this is why they are in the process of selling most their satellite office buildings.

Also, they own the two Grand Park buildings and there has been speculation they may sell those to the Mid* companies to accommodate their growth. They own pretty much everything all the way to the RR tracks to the east and we had previously posted a master plan that showed plenty more full-block buildings and garages, but all that seems to be on indefinite hold.

They did finally acquire the collision center, one of the very last hold-outs... $2 million for less than an acre. Closed in April so this was still on Aubrey's watch.

Work seems to have pretty much stopped on their pond and no new construction has commenced since the new board and chairman were put into place.

You can see the Classen roundabout and how they are converting Shartel into a divided main N/S thoroughfare through the east campus, with the other N/S streets no longer going completely through, with the exception of Classen.

[Pete]

Here are the structures under construction or very recently finished:

Building #1


Building #14


Building #15


RTC Lab


Data Center


Garage #3


Garage #5

[warreng88]

I think the deal was they were going to finish all the buildings they started and then not start any more until NG prices go back up. I know there was a plan for another fitness center and an HR building near the pond, but that is about it.

I have several friends who went to Skyline, the restaurant atop Building 14 and said it was very nice, well run and cheap, like the rest of CHK's restaurants.