What's next for downtown OKC?

[metro]

I was driving around downtown OKC this afternoon and pondered what is next for downtown OKC. As you know, I am a huge adovocate for and resident of downtown OKC. I noticed that most of the announced projects are completed are underway. Skirvin, Colcord, Residence Inn, Melting Pot, Al's, Othello's, RAW, as well as most of the housing projects will be done either completely or at least phase I by this summer. By far, Block 42 is the lead contender for the first new development to open for home ownership. Also, Legacy Summit at Arts Quarter should be open I'm guessing in 2 weeks. Maywood Park, Central Ave Villas, and "The Hill" are also coming along nicely. MidTown is also becoming established now. With most of these projects done or near done, or starting, it makes you wonder with the momentum going, what projects will be announced next. I know we've had similar discussions from time to time, but what's the next new thing that will be announced? Not necessarily what we anticipate or want. Anyone know anything that hasn't been announced yet that I don't? I know of one and know someone else who knows about another one. Anyone who has more info please enlighten us...............

[Pete]

I would guess a major convention hotel and/or residential tower will be the next big news for downtown. The only hope for major office construction is for Devon to decide to consolidate all it's office space in one new tower.

In the meantime, I think you'll continue to see tons of smaller development. It will be very interesting to see what happens when all the residential units come on-line in the next year, because that will really change the dynamics in the area.

At some point, more retail has to start popping up, too. I still think we're a few years away from anything major, though.

[Luke]

With all these housing opportunities opening up within the next few months and over the course of the next year, the downtown population will grow by leaps and bounds. Surely, retailers will notice and want to take advantage of this unique population.

[mburlison]

What needs to happen next is to find tenants for the Kerr-McGee complex.

[metro]

Again to clarify, I'm not looking at what needs to happen, expected, etc. but actual behind the scenes information. Others as well as myself have disclosed priveledged information that is okay to dissemenate from time to time and I was hoping that someone knew more of Project "X" or whatever is going to be announced soon is. I know a few members of this board who know if they are able to share. We've talked about possible scenario's many a time.

[BDP]

I don't know, Metro. I think this year will be seen as a watershed year looking back in ten years. Will downtown housing actually take off and truly reinvent downtown as a viable and vibrant OKC neighborhood? Or will we be left with unfinished projects scattered around the area left incomplete by developers who couldn’t service their notes on the initial phases? I'm guessing there are some people standing on the sidelines waiting to pounce if a truly energetic and dense urban district does in fact come to fruition in OKC.

And even if it does, there will be questions about the economy. A lot of cities are listed as overbuilt in terms of housing and condos, with many projects still unfinished. It really does seem to be sputtering a bit after an impressive boom. A change in interest rates or economic focus can change those things quickly, for better or worse. If it does slow down for any sustained amount of time, will Oklahoma be seen as the exception and provide an opportunity for idle investors or will they take a passive role entirely and wait and see if the bigger markets come back? Is what we are seeing now simply Oklahoma City playing catch up in the urban housing market that was so strong for 10 years, or is Oklahoma City simply filling a long time need of its own?

My thoughts right now are that, if downtown housing is successful, then a new residential tower will be the next big thing. These things tend to snowball and a tower would be one way to both differentiate the housing mix by adding a new twist to the mostly low-rise townhouse/brownstone type residential developments we're seeing now and to maximize ROI as property values rise with the areas stature. I think where it is placed will depend on where services end up being centralized, with the two biggest competing districts being the Triangle/Auto Alley area and the mid-town/arts district area. I'm guessing that, while both can be successful in sales, one will emerge with a better mix of services, at which time it will make sense to create more housing density around those services, which is best accomplished by some sort of tower.

I still think that our corporate office demand can be met with our current assets through renovations and restorations. But, maybe that's just because I personally favor that kind of development initially over just building more inventory.

Just kind of thinking out loud…

[metro]

Good post BDP

[CCOKC]

My husband and I are buying an accounting firm that is not in a very desirable neighborhood and will be looking to move in the next year. We are considering a move the Downtown area but are concerned with parking and security issues. We definitely don't want to be in a big tower. With all of the projects going on right now this may be the time to get in to this area before it becomes too expensive. Any thoughts or concerns about a business like ours moving downtown?

[John]

My husband and I are buying an accounting firm that is not in a very desirable neighborhood and will be looking to move in the next year. We are considering a move the Downtown area but are concerned with parking and security issues. We definitely don't want to be in a big tower. With all of the projects going on right now this may be the time to get in to this area before it becomes too expensive. Any thoughts or concerns about a business like ours moving downtown?

The MidTown area seems like its what you all are wanting. Safe, your own parking, and near downtown while not in a tower.

Get on the horn with Dowell or Banta.

[Turanacus]

Someone told me that Exxon is vigorously trying to buy out Devon. This will kill downtown OKC, first Kerr McGee now this?

I'm very nervous about this. It would be disastrous for downtown.

[Patrick]

Someone told me that Exxon is vigorously trying to buy out Devon. This will kill downtown OKC, first Kerr McGee now this?

I'm very nervous about this. It would be disastrous for downtown.

Exxon? LOL! Maybe it's the other way around.......Devon trying to buy out Exxon. Exxon is a small fish compared to Devon.

[Theo Walcott]

Will Exxon Go For Devon?

Are you sure about that, Patrick? I'm pretty sure Exxon is the largest and most profitable corporation in the history of mankind. This is NOT good news for OKC.

[Turanacus]

Patrick,

ExxonMobil is over 20 times larger than Devon.

[Patrick]

Will Exxon Go For Devon?

Are you sure about that, Patrick? I'm pretty sure Exxon is the largest and most profitable corporation in the history of mankind. This is NOT good news for OKC.

I guess it could happen. Look at Exxon and Mobil....two large oil corps that joined forces.

[John]

Exxon? LOL! Maybe it's the other way around.......Devon trying to buy out Exxon. Exxon is a small fish compared to Devon.

You're kidding, right?

ExxonMobil is the #2 company on the Fortune 500 list, and Devon is at #239. (2007 rankings)

[jbrown84]

Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, a suburb of Dallas, USA, is the largest publicly traded integrated oil and gas company in the world, formed on November 30, 1999, by the merger of Exxon and Mobil. As of 2007, it is the largest company in the world (in market value) and the largest publicly traded company in the world as ranked by the Forbes Global 2000; at $410.7 billion and the largest company in the world (by revenue), Fortune Global 500. It is the largest of the six oil "supermajors" with daily production of 6.5m boe (barrels of oil equivalent), contributing 3% of the world's oil and 2% of the world's energy.

[Patrick]

Patrick,

ExxonMobil is over 20 times larger than Devon.

Yeah, you're right if you incluide their overseas operations.

[Patrick]

I wasn't including overseas operations.

[Theo Walcott]

This is HORRIBLE news. Tell me they won't sell out. It would hurt downtown and the community tremendously.

[Patrick]

Ummmm....it was a hypothetical statement by one Wall-Street analyst. Nothing has been stated by either corporation.

[jbrown84]

Exxon Mobil bid for Devon Energy unlikely
By Heather West
Published: April 12 2007 15:28 | Last updated: April 12 2007 15:28


Exxon Mobil, the US oil major, is unlikely to acquire Devon Energy, despite industry speculation to the contrary, sources said. An industry source said he heard from a floor trader that there was market speculation that Exxon was looking at Devon. Published reports also cited the rumors. But according to a person with some familiarity of Exxon’s strategy, Exxon does not typically buy companies, and would not pay what would likely be a steep price for Devon. Devon, a leading producer in the Barnett Shale has a current market capitalization of USD 32.65bn. Secondly, even a large independent producer like Devon wouldn’t move the needle for Exxon, he said.

Three bankers and two industry executives also said Exxon is unlikely to acquire a company in the Barnett Shale, and is more likely to pursue organic growth. A more likely scenario, according to the first executive, who is also familiar with Exxon, is to grow organically in the outskirts of the Barnett Shale. Exxon, with USD 28.24bn in cash, announced in January it would develop eight counties in the Barnett Shale, through a joint venture partnership with privately held Harding Company.

The first executive said Exxon signed the JV with Harding to get its feet wet in the Barnett, and to partner with a company with many years experience in the play. Harding is helping to obtain the permits and to do most of the grunt work, the executive said. While Exxon could make acquisitions down the line, and Devon, EOG and even EnCana could all be possible targets, it seems Exxon is looking to grow organically, the executive said. The JV with Harding will develop natural gas in the Barnett Shale, in the eight-county area of Tarrant, Johnson, Ellis, Dallas, Denton, Collin, Navarro and Hill. The formation of the Barnett Shale reaches those counties, the executive said, but it is not as good as the core of the formation. He explained that in the core of the Barnett in Denton, the formation is from 800ft to 1000ft thick, but in Erath, it is 80 ft thick, and even thinner further out. Exxon will probably avoid the hot counties, and will instead go to the outskirts and use its technology to prove up the outside play. Exxon would be the first to move to that region, and could accumulate some decent acreage, the executive said. A company cannot aggregate significant acreage in the core, he said.

Financial Times

[okclee]

Remember many times these rumors are started just to drive up the price of stocks.

[jbrown84]

Larry Nichols wouldn't sell out like Corbett did.

[Theo Walcott]

These things aren't stated ala KMG/Anadarko. They just go down one day and the S hits the F.

[Patrick]

Again, only market speculation. This occurs everyday on Wallstreet.