I wonder if the fact that these repairs are getting done means that their building lighting will be fixed too... One can hope, at least!
I wonder if the fact that these repairs are getting done means that their building lighting will be fixed too... One can hope, at least!
Personally, i'd like to see the cowboy crap go and bring the place into the present. Cotter was a MAJOR disappointment in the way he refused to help spur things. It's as though he refused to believe that we weren't in the old-west, or at least the 70's. Hopefully the legal battle wont end up causing issues with the building/tenants and cause them to lose/miss something. We've seen too many examples of how that kind of crap kills places. And this place is far too large to let that happen.
Apparently, the new building management company has been calling tenants asking if they'd be interested in moving to a new building. Not sure if that means anything or just a coincidence, but thought it was noteworthy given the current state of the ownership.
That usually means they want to sell it.
After the death of Mr. Cotter, the building has been in the hands of a court-appointed administrator while the sons and the widow (not the mother of the sons) fight over the estate which includes a bunch of properties and other assets.
There are lots of locals who would love to buy it but the administrator is based in San Antonio and sometimes these sales become 'pocket deals' where the property goes to a friend.
Maybe, but that would be the exception. My office moved out of Cotter Ranch 2 years ago. After being tenants in the building for over 15 years (original landlord was BankOne), and leasing an entire floor for the last 8 of those years, we were paying market rate. The building sat at about a 55% occupancy rate after Devon moved out in 2012. It was extremely poorly managed, and I haven't heard good things from current tenants after Mr. Cotter's death and Chase moved out.
While we are not downtown, our office moved to a similarly priced part of town and are paying about the same rental rate for a significantly better space.
The entity that owns the building filed BK Monday or Tuesday in Texas. Biggest creditors are Veolia ($160,000), CBRE ($66,000) and and Otis Elevator ($43,000). No wonder the elevators have gotten scarier and the heating/cooling situation is so bad.
Cotter Tower owner files for bankruptcy
As heirs to a huge estate battle in court, one of Oklahoma City's tallest buildings has fallen into bankruptcy.
San Antonio investor James F. Cotter passed away in January leaving a disputed will and a feud between Cotter's children and his third wife Bettye Ruth Cotter. Courts in San Antonio appointed attorney Marcus P. Rogers as administrator to oversee the estate until it can be settled.
Ruth Cotter currently lives in the Oklahoma City area in a home the couple had purchased in 2012.
The 36-story tower was originally built in 1972 as home to Liberty Bank which was bought by Bank One in 1997 then ultimately became Chase Bank. Cotter bought the 540,000 square foot building in 2004 for $27.9 million.
Even before Cotter's death, tenants complained of poor maintenance and after Devon built its new headquarters and moved a substantial number of employees out of Cotter Tower, almost half the building was left vacant.
OKCTalk spoke to various tower tenants who mentioned concerns regarding smells, unregulated temperatures, leaks and poor response from building management.
In Price Edward's 2017 Mid-Year Office Survey, the building was shown with a 37% vacancy at a time where downtown office occupancy continues to be quite strong.
In the bankruptcy filing by Rogers in Texas district court, more than 50 creditors are listed and the ownership entity for the building is shown with $10-50 million in assets and the same amount of debt.
Among the largest creditors are Veolia Energy for $166,677 for utilities provided to the building, $43,099 owed to Otis Elevator and $66,635 due CBRE, the company which has been managing the property and others owned by the Cotter Estate, including the Lakepointe Towers at NW Expressway and 63rd Street in Oklahoma City.
OKCTalk has also learned that several current tenants have been approached about the possibility of ending their leases early and relocating.
Local investors have expressed interest in purchasing Cotter Tower, however the building is not currently for sale although that could change given the state of the building's current financial situation.
Hopefully someone will buy the property & upgrade this tower into a Class A office space. It needs major renovation.
Here's hoping for a local owner in that case.
They just uploaded more documents to the bankruptcy filing and here are some highlights:
Debtor’s primary asset is the Cotter Ranch Tower property. The property was
last professionally appraised in 2014, in connection with the refinancing of the Note, at a value
of $33,800,000.00. The current ad valorem taxing authority appraisal is $25,500,000.00. The
property was recently re-appraised to provide Mr. Rogers with information to consider purchase
offers, and a written appraisal is currently pending. The current occupancy rate for the building
is approximately 63%. The building is professionally managed by CBRE, Inc.
13. According to the Debtor’s books, the secured lender Bank SNB is believed to be
owed approximately $15,617,468. Therefore, there is a significant amount of equity in the Cotter
Ranch Tower property.
14. The Debtor has no employees, and the staff that provide services for the Debtor or
perform services for the property are employed by CBRE, Inc., with which the Debtor has an
agreement to provide property management services.
15. Debtor’s sole source of revenue comes from the rents received from tenants
renting commercial office space at Cotter Ranch Tower. Currently, the gross rents received are
scheduled at approximately $475,723.00 per month.
16. The current ad valorem property taxes due for the 2017 tax year are
approximately $270,000.00 with no prior years’ delinquent taxes owed, however, such property
taxes are not currently escrowed. The building is insured and policy premiums are current.
Reasons for Filing Bankruptcy
17. As noted above, the Note has matured on the Cotter Tower Ranch property. The
potential loss through a foreclosure sale would result in the forfeiture of all of the Debtor’s
equity leave the Debtor without the resources necessary to pay more than $400,000 in unsecured
trade debt, as well as several thousands in mechanic’s lien claimants. The Debtor therefore filed
this case, seeking the time needed to sell the property in a manner that will ensure a fair price and
allow the Debtor to pay its debts in an orderly fashion.
Going Forward
18. Through this case, the Debtor will seek to reorganize its debts under Chapter 11
of the Bankruptcy Code, most likely through a liquidating plan. Debtor intends to sell the Cotter
Ranch Tower property, payoff Bank SNB and other valid liens encumbering the properties, and
Debtor believes it will be able to provide for the full payment of all allowed claims in this
bankruptcy case leaving the remaining funds to be administered for the benefit of the Cotter
heirs.
No matter what it's future holds, it will be great to see this building sold and renovated. It's the second most prominent building in OKC's skyline and it's somewhat depressing to see it so run down.
If someone buys this and plans on doing any sort of significant work on, be sure TIF funding will be requested...
You can bet the Mark Beffort / Roy Oliver group will take a hard run as they have already acquired Leadership Square, Oklahoma Tower, Corporate Tower, the old IRS Building, Valliance Tower, etc. They basically own all the larger spec office buildings in town.
Cotter needs work but it's something they could do systematically as they bring in new tenants.
I know at least one other local group has been trying to make an offer.
I remember whenever they had lights on the corners of it that shone vertically and made a massive difference in improving the look of the building. Small improvements can really make a huge difference on this part of the skyline.
What are the chances Continental is considering a move? They did just throw out an unsolicited bid for the Santa Fe parking structure.
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