Devon ?

[SOONER8693]

Is there any substance/basis for the sporadic talk about a new Devon tower? Or, is it just internet/message board rumor, born totally on the boards

[redland]

I can only second your question. Although I've heard many allusions to such a tower, I've never seen anything attributable to an authoritative source. I am a little more skeptical than ever, however, in light of Devon's apparent intent to increase its space in other downtown venues (e.g., First National Center). All that said, I really hope for a new tower in downtown OKC soon. Although our skyline can still impress, it has probably gone longer than that of almost any other major city without adding a skyline-altering tower. We've had buildiings such as the Renaissance Hotel which are welcome additons to the downtown landscape but don't really alter the skyLINE. We need a building as tall as or taller than Chase.
Please, Devon, consider it!!!!!

[solitude]

I can only second your question. Although I've heard many allusions to such a tower, I've never seen anything attributable to an authoritative source. I am a little more skeptical than ever, however, in light of Devon's apparent intent to increase its space in other downtown venues (e.g., First National Center). All that said, I really hope for a new tower in downtown OKC soon. Although our skyline can still impress, it has probably gone longer than that of almost any other major city without adding a skyline-altering tower. We've had buildiings such as the Renaissance Hotel which are welcome additons to the downtown landscape but don't really alter the skyLINE. We need a building as tall as or taller than Chase.
Please, Devon, consider it!!!!!

We could pass a penny sales tax and help them build it!!!

Just kidding.

I'm with you, I hope we get a tower that is taller than Chase that will alter the skyline. I'm also with you and Sooner8693 in liking to hear if there is any real information out there, or, if this indeed just rumour and hopeful/wishful thinking.

[SouthsideSooner]

I wouldn't be surprised if this wasn't at least somewhat dependent on the vote's Tuesday and for MAPS 3.

If those two votes pass, private investment will follow.

[Luke]

We could pass a penny sales tax and help them build it!!!

Why not? First Bass Pro, then the Ford Center...why not Devon?

"Because Big League Cities Need Big City Buildings!"

[Dustbowl]

Why not? First Bass Pro, then the Ford Center...why not Devon?

"Because Big League Cities Need Big City Buildings!"

I believe Devon being bought out and moving to Houston has greater odds than a new tower downtown. Face it, Houston IS the oil capitol. Think Kerr Mcgee.

[tuck]

I have heard Devon is looking to build a tower just South of Downtown...Core to Shore.

[BG918]

I have heard Devon is looking to build a tower just South of Downtown...Core to Shore.

If Devon doesn't build a tower the convention hotel with upper floor condos (part of Core to Shore) at the SE corner of the blvd. and Robinson will be our best bet. I imagine we would vote on providing public financing for it along with the new convention center on the blvd. similar to what Denver did when they expanded their CC and also built a 35 story Hyatt next door, a public-private project. I would expect any hotel there to be at least 800 rooms and with potential condos that it could be "skyline-altering" at above 25 stories, maybe as many 40...

[Pete]

The rumor was mentioned by Steve Lackmeyer in recent article in the Oklahoman, so it's more than just message board chatter:


Downtown developer purchases entire 100 block of Hudson
By Steve Lackmeyer, Business Writer

Veteran downtown developer Nicholas Preftakes, now owner of the entire 100 block of Hudson Avenue, calmly smiles and deflects any suggestion that his continued acquisitions along Hudson Avenue are any more than a routine investment. But his latest purchase of the 1 North Hudson Building — the former Black Hotel — has some observers wondering whether the purchases are based on widespread rumors that Devon Energy is contemplating building a new corporate headquarters at Hudson and Sheridan.

"He's probably hearing rumors of potential development across the street,” said Brett Hamm, president of Downtown Oklahoma City Inc. "It might reflect his hope or belief there might some validity behind all that.” To date, Devon Energy has not publicly discussed any plans for a new headquarters. The company currently occupies office space in five downtown buildings. Oklahoma City Urban Renewal director JoeVan Bullard, whose agency controls the parking deck, said he has had no formal discussions with potential developers.

Preftakes began buying property across from the parking deck earlier this year. Some properties, like the former Carpenter Square Theater and Dorn's Office Supply, already were empty. Anita Sanders, who renovated 408 W Main into her law offices, moved out when it was sold to Preftakes for $1 million in March. Likewise, all parking contracts were terminated when Preftakes paid $3.25 million in June for the seven-story Cheek garage at 17 N Hudson. Preftakes has confirmed he completed the purchase of the 1 North Hudson Building last week. He declined to disclose the price, and the deed transfer was not available Wednesday at the Oklahoma County assessor's office.

As with his other purchases along Hudson Avenue and Main Street, Preftakes was coy about buying 1 North Hudson, saying it represents continued investment downtown. "It's as simple as one thing leads to another,” Preftakes said. "Sometimes people contact me.” Preftakes said his immediate plans include some "cleaning up and TLC,” but no major changes. He said the tenants are not being asked to leave. "The office building works as an office building, and we will continue to operate it as an office building,” Preftakes said. "We won't be moving anyone out — tenants like Scotts Office Printing are there for a long time.”

[JOHNINSOKC]

I was a bit frustrated when I read that Devon was leasing another 100,000 square feet in First National. I think the group that bought that building should make it a mixed-use tower with 1/3 of it being Class A office and the rest as condos. The good news in all of this is that if they eventually get the FNB fully leased, our vacancy rate will take a freefall and there will be a major justification for new construction. Has anyone heard anything else on the possiblility of American Fidelity coming downtown? Perhaps they can build a new tower as well. The DOK said that Devon has leased 600,000 sq. ft total. That sounds like a huge new skyscraper if they ever end up building one.

[Pete]

John, think of it this way: FNC needs the income to fund renovations and hopefully Devon will only be there until they get their new tower built, which would likely take a few years, best case.

And I think we previously calculated that Devon occupies what amounts to be about a 40-story tower worth of office space; and obviously they'd want some room to grow and perhaps lease out just for income purposes.

Also remember that the head of Devon was very involved with getting Sandridge to take over the Kerr McGee building, and it was pretty clear they didn't want to build a new tower with a ton of existing space on the downtown market -- mainly for the strength and vitality of downtown.

All this points to a new tower announcement in the next year or so, and I'd expect it to be in the 50-story range; well taller than the city's current leader, Chase Tower at 36 floors.

[JOHNINSOKC]

I like how that sounds! OKC really needs a signature tower that obviously reflects the prosperity that is going on now and will continue into the future. I'm hoping the announcement will come within the next several months. Being that it will probably take a couple of years from announcement to completion, that would give FNC time to be fully renovated and leased, which would make downtown much more vibrant. My prediction is that a new Devon tower will be adding to our skyline before the new Crosstown is complete in 2012.

[BFizzy]

There will be a new Devon tower downtown. Larry Nichols said that "it will not only be an iconic building for the city, but for the entire region." He said that there will be a press release soon, but they are waiting to get all the building permits first. He also said that even though there is speculation that Devon will be acquired, he doesn't think it will happen.

[JOHNINSOKC]

BFizzy...Do you work for Devon or know someone who can confirm this? It sounds legitimate by the sound of the quote, but if this is true, I am looking so forward to this announcement. Also, the fact that it may be an iconic building for the "region" sounds particularly interesting. That's saying something when you have Dallas nearby that sports the most architecturally appealing towers in the southwest. If you look at the fact that Devon recently signed a lease for another 100,000 sq. ft, then it's obvious that they have to plan for something since the company is growing so fast. Wouldn't it be wonderful to find out that we passed the sales tax extension, and then find out we are about to get a new signature tower? This is truly a great time to be in OKC!

[Pete]

Here's another thread from about 9 months ago with another Steve Lackmeyer article quote inside sources at Devon:

http://www.okctalk.com/okc-metro-are...ssibility.html

[metro]

I know some of the "sources" that were behind the Lackmeyer article about the tower being off Hudson. I'm pretty sure that rumor is now dead in the water. As others have pointed out, Larry Nichols (Devon's CEO), wants what is best for OKC. He's flat out said publically several times, they are open to building a tower, but only if it is in OKC's best interest. Currently we still have a high vacancy rate downtown and dumping 600,000+sq. ft on market isn't exactly helping anything. I assume as others have said when the vacancy rate drops, and OKC voters are committed to more capital investment (either Ford Center, MAPS III, or hopefully both) then corporations will make long-term commitments. They aren't going to make these long-term commitments if voters aren't going to commit long-term to their own city at a very minimal expense. These huge corporations have a lot more at stake then we do.

[Spartan]

I wouldn't be surprised if this wasn't at least somewhat dependent on the vote's Tuesday and for MAPS 3.

If those two votes pass, private investment will follow.

Congratulations, you are a very thoughtful and intelligent person.

[BFizzy]

The quote above was taken from an internal meeting for future leaders of Devon about three weeks ago.

[CCOKC]

I don't know Larry Nichols personally but I do respect his prudence in this matter.
It seems like he truly has the best interest of OKC and downtown in mind when making this big decision and would think that if Devon does build a big tower he has confidence he would not be leaving a big hole in the middle of the CBD just for the sake of us having a new tower. I don't know how long a tower of this magnitude would take to build, but I am assuming we are talking years. The new boulevard may be finished before a new Devon tower.

[jbrown84]

I know some of the "sources" that were behind the Lackmeyer article about the tower being off Hudson. I'm pretty sure that rumor is now dead in the water. As others have pointed out, Larry Nichols (Devon's CEO), wants what is best for OKC. He's flat out said publically several times, they are open to building a tower, but only if it is in OKC's best interest. Currently we still have a high vacancy rate downtown and dumping 600,000+sq. ft on market isn't exactly helping anything. I assume as others have said when the vacancy rate drops, and OKC voters are committed to more capital investment (either Ford Center, MAPS III, or hopefully both) then corporations will make long-term commitments. They aren't going to make these long-term commitments if voters aren't going to commit long-term to their own city at a very minimal expense. These huge corporations have a lot more at stake then we do.

The thing is, all the downtown vacancy is Class B and C, and that's why it's not filling up. The Class A space will fill much easier, especially if American Fidelity takes a large chunk of it.

[shane453]

I can see a situation where Devon sells its tower to American Fidelity when it moves into a new building. Unless AF is looking to move downtown sooner than that.

[jbrown84]

Devon doesn't own any tower.

[Patrick]

Devon doesn't own any tower.

That's actually not true. I worked at Devon back in 1996 when they acquired Mid America Tower.
They purchased it for around $12 million, if I remember right, under the private name DBC Inc. Unless its changed hands, they still own it. I'd have to do a county assessor search to be for sure though.

Interesting enough, when I worked there they only used 3 floors in the 20 floor tower. My has Devon grown.

[jbrown84]

I stand corrected.

[Patrick]

No problem jbrown! You're still my number 1 fan!

DBC Inc. is the private subsidiary of Devon that manages their building. A lot of large property owners have a separate subsidiary that manages their building for them. That way, it keeps the books separate.