Chesapeake buys tennis club; looking to swap w/ Knights of Columbus

[Pete]

Chesapeake buys tennis club for $1.8 million
by Kevan Goff-Parker
The Journal Record
8/9/2006

OKLAHOMA CITY – Members are still hitting serves and volleys, but the future of a long-standing Oklahoma City tennis club is up in the air.

Santa Fe Club LP sold the Santa Fe Club, at 6300 N. Santa Fe Ave., to Chesapeake Land Co. LLC for $1.8 million on July 31.

Tom Price, senior vice president of investor relations for Chesapeake Energy Corp., confirmed Chesapeake’s purchase and that Chesapeake has had discussions with the Knights of Columbus, which has assets near the Chesapeake Energy Corp. campus, about a possible real estate swap.

“Nothing has been completed yet,” Price said.

Colin Robertson, current manager and former co-owner of Santa Fe Club, said he and his partner, attorney Kent F. Frates, have leased back the indoor tennis club at least until the end of September. The club is fully operational.

The interim lease will allow the facility to operate as the club’s future is negotiated. Built in 1974, Republic Bank sold the property then known as The Courts to Santa Fe Club LP in 1988. The 40,818-square-foot facility has six indoor and six outdoor courts, aerobic and weight training rooms, three squash courts and an outdoor volleyball area.

[Pete]

Since the Knights of Columbus building is north of 63rd, I guess this means Chesapeake will soon be making that jump and will probably start acquiring more properties in that area now.

Also, I hate to see these two buildings (tennis club and K of C) go. I have found memories of both.

[keving]

What is the address of the Knights of Columbus' place?

[Pete]

It's just north of 63rd on the west side of Classen.

[Easy180]

just a thought...going to be a lot of vacant real estate when they get bought out by the big boys...only a matter of time for them and Devon....the nasty "C" word......consolidation

[BDP]

Since the Knights of Columbus building is north of 63rd, I guess this means Chesapeake will soon be making that jump and will probably start acquiring more properties in that area now.

That's the plan.

They already own Nichols Hills Plaza as well. I thought they owned the metro, too. All north of 63rd.

[metro]

What is Knights of Columbus?

[Pete]

Knights of Columbus is a fraternal organization, similar to the Elks.

But that buidling can be rented out for events. I've been to several parties there (not affiliated w/ K of C).

[Martin]

k of c, more specifically a fraternal organization with close ties to the catholic church. -M

[Pete]

The empire marches on!


Trading spaces
Knights accept Chesapeake’s offer
By Richard Mize Real Estate Editor

Richard Mize: 475-3518, richardmize@oklahoman.com




Chesapeake Energy Corp. found a way to make the Knights of Columbus an offer they couldn’t refuse — but the vote was still a mite close.

Chesapeake is swapping Santa Fe Fitness & Racquet Club at 6300 N Santa Fe Ave., which it recently acquired for $1.8 million, for the Knights of Columbus Hall at 6501 Classen Blvd.

The deal is expected to close in a few weeks. The pending transaction, unlike most private deals involving Chesapeake, was brought to light because it required a vote of the Knights of Columbus membership.

Chesapeake also is donating $1 million to the charitable Catholic men’s organization, founded here in 1905. The Knights have operated the meeting hall, which includes offices, a kitchen and outdoor swimming pool, since 1960, said Bill Cathey, former grand knight.

Members of Knights of Columbus Oklahoma Council 1038 voted 30-27 recently to accept Chesapeake’s offer, Cathey said. He said the vote was closer than he thought it would be.

“Everybody wants to sell to Chesapeake, but not everybody wants to take the Santa Fe club,” Cathey said.

Many of the voting members wanted to build a new hall, he said, but no other property could be found in the neighborhood. The council has a close connection to Our Lady’s Cathedral at 3214 Lake Ave. near NW 32 and Western Avenue.

“I don’t think what we can do — our core mission — can be done there,” Grand Knight Lou Falsetti said. “But I’m Grand Knight. I’ll do what I can to make it successful.”

The Santa Fe club is about a mile east of the hall. It’s future could not be determined. Management declined to comment.

The two-step deal, however, appears to have satisfied all three institutions, the negative votes notwithstanding.

The Santa Fe club did decide to sell. Chesapeake got another property close to its headquarters along Classen south of NW 63, although the company said it has no immediate plans for it.

The Knights of Columbus will have room to spread out. It will leave a 6,800-square-foot building constructed in the late 1950s for a nearly 50,000-squarefoot facility built in 1974.

“We’re hoping this new place will really energize our young Catholic men and families,” Cathey said.

Cathey said the Knights weren’t exactly receptive when Chesapeake, on a five-year expansion and property-buying spree, first made an offer for the hall.

“When they first approached us with cash, just over a year ago, we said cash wasn’t just what we needed. We needed a facility and everything else,” he said.

When the Santa Fe club went on the market, he said, the Knights let Chesapeake know something might be worked out.

“They tailor-made something for us and they’re very supportive of us,” Cathey said. “I have more than admiration. I have a lot of respect for how they dealt with us.”

Tom Price Jr., Chesapeake’s executive vice president for corporate development, said the energy company bought the Santa Fe club for the express purpose of trading it for the Knights of Columbus hall.

“We have traded properties before,” Price said, naming the Nantucket Office Building at 3232 W Britton Road, which Chesapeake acquired for $1.36 million earlier this year to trade for the former Tapwerks Ale House & Cafe building at 5700 N Western Ave.

“Sometimes it helps motivate a seller who wants to immediately do a 1031 tax exchange and they have already identified what property they are looking forward (to acquiring),” Price said, referring to the section of the Internal Revenue Code that allows “like-kind” exchanges of investment property free of capital gains taxation under certain circumstances.

“It makes it easier for us to acquire the property for them, or trade one we have in inventory,” he said.