View Full Version : Chesapeake buys Ft. Worth tower



metro
04-01-2008, 07:39 AM
Chesapeake to buy Fort Worth tower

April 1, 2008

OKLAHOMA CITY – Chesapeake Energy Corp. has agreed to purchase a 20-story office building in downtown Fort Worth, Texas, for an undisclosed price, the company announced Monday.

The Tarrant County Appraisal District considers the land and building to be worth about $72.5 million, according to 2007 county records.

Oklahoma City-based Chesapeake has its sights on the 460,000-square-foot Pier 1 Imports Building to house its district headquarters for the company’s Barnett Shale drilling operations in north Texas. The company reports it has about 800 Barnett Shale wells in Tarrant, Johnson and Dallas counties.

It employs 5,000 people directly, and indirectly, in the Fort Worth area, and anticipates growing its employee base in Texas in the coming years. Additional support offices are also planned in Tarrant County. Built in 2004, the glass and gray granite building has been the corporate headquarters for Pier 1 Imports Inc.“We have spent the past year evaluating options concerning our headquarters,” said Pier 1 CEO Alex Smith in a written statement. “We had three goals in mind: recouping our investment, minimizing ongoing costs, and finding a quality business partner for a leasing relationship. The deal that we have structured with Chesapeake accomplishes all three goals. We are proud to be partnered with a leader in the natural gas industry as well as a leader in the Fort Worth community.”

Pier 1 plans to remain in the building and lease 10 floors – about 25,000 square feet – back from Chesapeake. The retailer reported 2007 losses of more than $226 million on sales of $1.6 billion.“The purchase of this architecturally significant building in downtown Fort Worth clearly demonstrates Chesapeake’s commitment to a very long-term presence in the Barnett Shale play,” said Julie H. Wilson, Chesapeake’s vice president of Corporate Development, in a prepared statement. “This building will allow us to provide much needed office space to support our rapidly growing Barnett Shale activities and will give our employees the space, amenities and resources they need to perform their jobs at the highest level.”

Chesapeake began drilling in Texas in 1990 and reports it has invested more than $15 billion in Texas since that time. The company’s Fort Worth offices are currently in the D.R. Horton Tower, where it plans to remain until the anticipated transaction closing on June 1 when it will finalize relocation plans. In addition to its operations in Texas, Chesapeake is also building a regional divisional headquarters for its eastern division operations in West Virginia.

Kerry
04-01-2008, 07:55 AM
Yawn. Would be nice to consolidate offices in OKC but I am sure Chesapeake know how to run their business. Since this is just moving employees around in downtown Ft. Worth it is a non-event for me.

metro
04-01-2008, 07:57 AM
Kerry, I understand your point but this part of the article is worth contemplating:


It employs 5,000 people directly, and indirectly, in the Fort Worth area, and anticipates growing its employee base in Texas in the coming years.

5,000 employees in the DFW area, I believe they only have about 2,000 in OKC. Can we not consolidate some of those DFW jobs back to OKC? That's more than double the OKC (HQ) workforce. Those are huge numbers.

sethsrott
04-01-2008, 08:05 AM
This is disgusting, I knew that Chesapeake didn't care about downtown, but for them to pull a stunt like this! I think this could be the beginging of Chesapeaks moving out of Oklahoma City, why on earth do you need 5,000 administration (and that is what an office job is) jobs in Ft. Worth when you are based out of Oklahoma City????

Although if they are willing to buy a tower in Ft. Worth as opposed to try and build another campus maybe they will consider building downtown...but I wouldn't count on it, this just proves that McClendon doesn't care about Oklahoma and their stupid ad campaigns are just a PR stunt.

tuck
04-01-2008, 08:07 AM
The attraction in Fort Worth is The Barnett Shale, which is the largest natural gas find in years. The oil & gas companies in Fort Worth can't hire people fast enough...Chesapeakes presence there should double quickly.

tuck
04-01-2008, 08:09 AM
This is disgusting, I knew that Chesapeake didn't care about downtown, but for them to pull a stunt like this! I think this could be the beginging of Chesapeaks moving out of Oklahoma City, why on earth do you need 5,000 administration (and that is what an office job is) jobs in Ft. Worth when you are based out of Oklahoma City????

Although if they are willing to buy a tower in Ft. Worth as opposed to try and build another campus maybe they will consider building downtown...but I wouldn't count on it, this just proves that McClendon doesn't care about Oklahoma and their stupid ad campaigns are just a PR stunt.

I think your wrong on every count; time will tell.

sethsrott
04-01-2008, 08:14 AM
Well, I might be wrong, and I hope so, but if Chesapeake starts getting a larger presence in Ft. Worth than in OKC, I don't think that Ft. Worth is stupid, they will try and solicit Chesapeake to bring it's 2,000 home office jobs to downtown Ft. Worth, and if they give an incentive package that is big enough then there is no telling what could happen.

autoMATTic
04-01-2008, 08:45 AM
While I do not believe anything negative for OKC will come out of this, it sure does make me squirm. They hired a great PR/VP for Ft. Worth. However, she should take note that any PR about an OKC-based company expanding in Texas does not settle well with OKCitians (Kerr-McGee, etc.).

This is a great thing for CHK. Nevertheless, the comments from the Ft. Worth VP were sprinkled with a dash of scary.

Pete
04-01-2008, 08:46 AM
Cool-looking building:

http://olive.newsok.com/Repository/getimage.dll?path=DOK/2008/04/01/22/Img/Pc0220700.jpg

http://www.fortwortharchitecture.com/pier1-trail.jpg

http://www.fortwortharchitecture.com/p1-04-01-05-dusk.jpg

MikeLucky
04-01-2008, 09:14 AM
This is disgusting, I knew that Chesapeake didn't care about downtown, but for them to pull a stunt like this! I think this could be the beginging of Chesapeaks moving out of Oklahoma City, why on earth do you need 5,000 administration (and that is what an office job is) jobs in Ft. Worth when you are based out of Oklahoma City????

Although if they are willing to buy a tower in Ft. Worth as opposed to try and build another campus maybe they will consider building downtown...but I wouldn't count on it, this just proves that McClendon doesn't care about Oklahoma and their stupid ad campaigns are just a PR stunt.

Seriously????? Well since CHK's wealth is built on the Barnett Shale which happens to be in Texas, then it sure makes sense.....

And do you honestly think Aubrey is overpaying for anything and everything near his OKC campus to go ahead and abandon it?

C'mon, use some common sense.....

Nawfside OKC
04-01-2008, 09:21 AM
yeah i don't think they will buy all that stuff on western just to up and move to Texas.

anyway Devon are the "hometown boys" that a willing to make monumental downtown financial investements.

sethsrott
04-01-2008, 09:22 AM
Oh, I guess that him buying $40,000,000 worth of Lake Michigan shoreline means that he is devoted to Michigan... nope, I see what he is doing around his campus as pure investment, he has jacked to prices of the surrounding land so far above market value that he would be able to sell those in a heart beat...also, wasn't there talk on a another thread about a University? hmm... thats a thought Aubrey moves Chesapeake to Ft. Worth and uses his campus to open a new private university in Oklahoma City... after all he has a housing development on Lake Michigan whats to say that he won't diversify into education as well?

BDP
04-01-2008, 09:30 AM
Well since CHK's wealth is built on the Barnett Shale which happens to be in Texas, then it sure makes sense.....

Then why does anyone care when outsiders buy Oklahoma companies and move their offices elsewhere, even when the revenue from the bought Oklahoma company still comes from Oklahoma?

There's no question that their economic impact is focused in Texas. It looks like they employ 2 and a half times the workforce there.

As for whether it makes sense to overpay for property in Nichols Hills to gut it and build a campus there, while consolidating their Ft Worth operations into one building downtown there, well... I don't think it's ever made any sense, but people here don't seem to mind, I guess.

metro
04-01-2008, 09:40 AM
That is an awesome building in Ft. Worth. Would love to see it in downtown OKC.

Nixon7
04-01-2008, 09:55 AM
Lol metro, you got a link? I think you got a lot of people fooled today...

kevinpate
04-01-2008, 10:09 AM
no april fools .. in the paper, and yes, it is an awesome bldg,as Pete's images reflect so well

tuck
04-01-2008, 10:16 AM
That is an awesome building in Ft. Worth. Would love to see it in downtown OKC.

This building was severely damaged in the tornado that hit Downtown Fort Worth a few years ago. As you can see, they rebuilt it very nicely.

Nixon7
04-01-2008, 10:22 AM
no april fools .. in the paper, and yes, it is an awesome bldg,as Pete's images reflect so well


Gotcha. Here's a link.

Star-Telegram.com: | 03/31/2008 | Chesapeake Energy buying Pier 1 building in Fort Worth (http://www.star-telegram.com/news/story/553524.html)

OKCMallen
04-01-2008, 10:26 AM
Don't bite the hand that feeds you.

okclee
04-01-2008, 10:52 AM
I guess Aubrey will be trying to move the Sonics to Ft. Worth now instead of Okc.

MikeLucky
04-01-2008, 11:22 AM
According to the article linked above:

"Chesapeake, which currently has 115 employees on two floors in the D.R. Horton building downtown, intends to move 300 to 400 workers into the top seven floors of the 20-story tower, said spokeswoman Julie Wilson. She said the company should have room for up to about 600 workers on those floors."

is it the 300 to 400 employees in this Fort Worth building that makes some of you think Aubrey is going to abandon OKC??????

If there are 5,000 CHK workers in Texas it's because that's where the drilling happens..... they can't hardly drill in the Barnett Shale from OKC.... :LolLolLol

Plus he is leasing out half of the building to Pier 1 anyway..... and then he now has space to house a number of employees that support the workers in the Shale..... Sounds like a good business decision to me..... not a running, screaming, abandonment of his hometown.... but, hey, what do I know......

Kerry
04-01-2008, 11:29 AM
I think the key is indirect employment where most of the workforce is classified. They works have to work where the raw material is located. It would have been nice to Chesapeake in a downtown tower in OKC but it just didn't work out that way. I just don't understand the Campus concept for businesses. They just don't make sense to work in.

Pete
04-01-2008, 11:30 AM
It's also clear that CHK strongly prefers to own rather than rent.

Their management team obviously likes real estate as an investment.

TStheThird
04-01-2008, 11:31 AM
5,000 directly and indirectly, mostly involved in drilling, production, and finding and negotiating lease holds. You people act like all of the top level execs and engineers, finance and accounting people work in Ft. Worth. They are in OKC. You can't operate your biggest play from 4 hours away. Chesapeake also has a 20 story tower in West Virginia. Big deal...

moose
04-01-2008, 11:53 AM
The head of their Barnett operation works out of OKC.

Pete
04-01-2008, 12:22 PM
Just think, if Chesapeake had it's HQ downtown, their staff could take the Heartland Flyer to and from their Ft. Worth location without even needing a car. :)

BDP
04-01-2008, 12:54 PM
is it the 300 to 400 employees in this Fort Worth building that makes some of you think Aubrey is going to abandon OKC??????

I don't know why anyone thinks they are abandoning OKC, but this actually highlights the point most are trying to make, along with them owning a 20 story towed in Virgina (which I didn't know).

In fort worth, they buy a tower downtown for 400 employees. In Oklahoma City they build a campus for 2000 and overpay for properties that had viable businesses on them to do it.

And forgive me if I don't consider a business that is buying up and tearing down other businesses to convert them to their private use as "feeding me". In fact, they've torn down some places where I used to eat, so if anything, the opposite is literally true. :)

Chesapeake obviously needs these facilities and labor they have elsewhere. It's just funny that the driving motivation behind the development of their Oklahoma City headquarters is to reinvigorate the struggling and dilapidated Nichols Hills area. I mean, it's such an important mission to them to help these people out that they will pay 10 times the assessed value to make sure this neighborhood gets back on its feet.

:LolLolLol

traxx
04-01-2008, 01:00 PM
If there are 5,000 CHK workers in Texas it's because that's where the drilling happens..... they can't hardly drill in the Barnett Shale from OKC.... :LolLolLol

Obviously McClendon has never heard of the slant drilling technique employed by C. Montgomery Burns on the Simpsons.:lol2:

But seriously, I don't understand how CHK has become the devil on OKCtalk just because they built a campus instead of a tower downtown. Somehow Devon has become the savior of OKC because they are building a tower.

It's just a different philosphy. Maybe McClendon likes a more homey feel where he can have it designed to his specs for work and play (fitness area). Just because his ideas are different from yours doesn't make him wrong. When you decide to build new headquarters for your multi billion dollar company you can build any way you want.

OKCMallen
04-01-2008, 01:24 PM
I don't jump on the hate CHK bandwagon, but one reason it makes people nervous about his building plans ie because we've experienced urban sprawl at its worst, and we're not in the mood to do it again. But generally, he can do whatever he wants; at least the buildings look nice.

BDP
04-01-2008, 01:25 PM
Yeah you're right. It's hard to believe that people would have an opinion on the development of their community.

Devon is a 180 from Chesapeake in development philosophy. They have made sacrifices to be downtown, help the viability of an area that needed it, occupy space, and have actually resisted the temptation to build a headquarters out of concerns of saturating the downtown market with more vacancy. Devon is not the savior of OKC because of what they are going to build, but more so because of what they haven't built.

Their biggest contribution is actually NOT building a tower when they could have justified it, NOT tearing down existing businesses to facilitate their own needs in a market that has ample property already, and NOT simply adding commercial inventory on the fringes of the city because they could get a little bit better price per acre on the property.

No one thinks Chesapeake is the devil and obviously they are going to do whatever they want to do, especially in a city that is desperate enough to not care about what they could be doing, but it shouldn't be too hard for anyone to recognize the differences in what guides Devon and what guides Chesapeake in developing their corporate community in context of Oklahoma City's future. Devon is just more conscientious about with they are doing and Chesapeake is mostly ego driven. The funny thing is that I would probably not say the same thing in terms of how the companies are actually run, but that's a different topic and separate issues, imo.

traxx
04-01-2008, 01:53 PM
Yeah you're right. It's hard to believe that people would have an opinion on the development of their community.

I'm assuming from your post that you believe I'm not allowing people to have an opinion about their community. I never said anything about not being allowed an opinion. I said I don't understand why people on here are demonizing CHK just because they choose to build a campus instead of a tower.

I'm of the opinion that urban sprawl is ugly strip malls with just another Subway deli and nail salon like the one that CHK tore down to build it's very nice looking campus.

And to say that McClendon doesn't care about downtown is to forget that he helped buy the Sonics just to move them to OKC and for no other reason. In fact, he nearly put the kibosh on the deal by saying just that. The Sonics will be an investment in downtown and help the area in so many ways for so many years.

Pete
04-01-2008, 02:04 PM
It should be pointed out, too, that CHK/McClendon had a lot to do with Sandridge buying the Kerr McGee tower and related properties.

That was a huge favor made towards downtown and OKC in general.

bretthexum
04-01-2008, 02:11 PM
Obviously McClendon has never heard of the slant drilling technique employed by C. Montgomery Burns on the Simpsons.:lol2:

But seriously, I don't understand how CHK has become the devil on OKCtalk just because they built a campus instead of a tower downtown. Somehow Devon has become the savior of OKC because they are building a tower.

It's just a different philosphy. Maybe McClendon likes a more homey feel where he can have it designed to his specs for work and play (fitness area). Just because his ideas are different from yours doesn't make him wrong. When you decide to build new headquarters for your multi billion dollar company you can build any way you want.

Exactly. For someone who's created that many well paying jobs for Oklahomans, give him a break. There could be many reasons he doesn't want something downtown. Who cares. It's his business, and he can do what he wants. It's not like they don't give back to the community in other ways. Yes, the whole campus expansion issue off Western pissed some people off. But it's not like these people who sold their property to CHK didn't make a few bucks off it.

BDP
04-01-2008, 02:21 PM
I'm of the opinion that urban sprawl is ugly strip malls with just another Subway deli and nail salon like the one that CHK tore down to build it's very nice looking campus.

I don't think they have added to sprawl, but they certainly didn't do anything to combat it. It's all a fairly lateral move to this point. Some may like their campus (it's certainly hard to not appreciate their landscaping), but as its grown it has become pretty pedestrian, but I'm not really even talking about the aesthetics of their development, more about the impact and specifically the opportunity cost of their vision.


And to say that McClendon doesn't care about downtown...

I didn't say that.


The Sonics will be an investment in downtown

Of course it will be and we're all a part of that investment, but that has nothing to do with their headquarters or how it compares to their real estate decisions in other markets.

I think it's a pretty hard concept to discuss in this forum. To most people, I can't talk about the opportunity costs associated with their developments without people taking it as me criticizing the company as a whole or discounting their other exemplary contributions to the community. It's very easy to wow people into apathy, so maybe I should just drink the CHKool-aid, too, and stop discussing it, but every time I think I'm okay with doing that, something else in the district is gone and replaced with something for Chesapeake or left empty.

Pete
04-01-2008, 02:49 PM
You know I hear your points BDP and I appreciate you raising them.

I think it's best to separate out the issues of their business and their real estate decisions.

Of course, it's great for OKC to have them in town with all their high-paying jobs and reputation for treating employees very well.

But that is completely separate from their plays -- many very large ones -- in real estate and the potential impact on one of the best areas of town.

In other words, just because they are a big employer doesn't mean they shouldn't be questioned, especially since their plans clearly go beyond their own corporate headquarters.

I've said all the way along I'll feel much better when they start putting some things back other than just for their own private use. I'm sure they have some grand plans but they aren't talking and they have certainly torn down plenty of buildings and displaced lots of businesses.

My greatest fear is that something is going to change before they get a chance to execute their plan: they're bought, their business takes a big downturn, the local economy takes a dive, etc.

It's also scary to think about them performing major surgery on NH Plaza and the surrounding districts only to accidentally ruin the eclectic charm of the area.

I can tell you that as of today, that area of town is less appealing to me now than before CHK started their major land grab. I miss the Varsity and Pearls and seeing some pretty brick buildings as a I drive by in my car doesn't compensate. And when the Regal Room closes later this year, that will be one less event venue and one that I'll miss.

They own virtually all the properties that house all the best retail and restaurants in that area. While any one of them is certainly replaceable, the sum total of what is getting to be a long list of places that have relocated or just cashed out is starting to be significant.

Kerry
04-01-2008, 03:24 PM
I still think they are preparing their campus for a private university.

sgt. pepper
04-01-2008, 03:31 PM
Kerry, in your opinion, Where do you think they will relocate thier business if they turn the campus into a Chesapeake State University?

okclee
04-01-2008, 03:33 PM
I still think they are preparing their campus for a private university.


There you go. If something ever happens to Chk , Okc will have a great new campus for a university.

BG918
04-01-2008, 05:08 PM
There you go. If something ever happens to Chk , Okc will have a great new campus for a university.

What university? Would UCO ever move out of Edmond into the Chesapeake campus? That would be interesting. Whatever it takes to get CHK downtown is a good thing. Although I doubt they move, especially if they are building up the area. And with a potential commuter rail stop at NW 63rd just east of the campus it could be one of OKC's largest future transit-oriented developments.

Kerry
04-01-2008, 05:18 PM
Well, since we are playing fantasy with someone else money and property here is my plan. CHK will build a new tower in downtown OKC starting in 2010 and will take 2 years to complete. They are waiting until 2010 to make the announcement after MAPS III passes just like Devon did with the Ford Center vote. They will be an iconic tower near core to shore that will rival the Devpn building in height and style. Then they will work with American Fidelity to buy the current Devon tower and remodel it into a Class A property.

When CHK moves into their new tower in 2012 (2 years construction) they will open Oklahoman City Polytechnic at the current CHK campus. Meanwhile, Sandridge will buy Anadarko Petro and move them back to OKC which will fill up the old KM building.

That is my vision of the future for OKC.

BG918
04-01-2008, 05:44 PM
Well, since we are playing fantasy with someone else money and property here is my plan. CHK will build a new tower in downtown OKC starting in 2010 and will take 2 years to complete. They are waiting until 2010 to make the announcement after MAPS III passes just like Devon did with the Ford Center vote. They will be an iconic tower near core to shore that will rival the Devpn building in height and style. Then they will work with American Fidelity to buy the current Devon tower and remodel it into a Class A property.

When CHK moves into their new tower in 2012 (2 years construction) they will open Oklahoman City Polytechnic at the current CHK campus. Meanwhile, Sandridge will buy Anadarko Petro and move them back to OKC which will fill up the old KM building.

That is my vision of the future for OKC.

Sounds good to me. Oklahoma City Polytechnic = OSU-OKC?

Spartan
04-01-2008, 06:25 PM
This thread cracks me up.

Kerry
04-01-2008, 06:25 PM
Oklahoma City Polytechnic - I was think more along the line of Georgia Tech or California Polytechnic but private like Ivy League schools or Stanford. Pure science and engineering.

Just go with it Spartan - it's fun.

andy157
04-01-2008, 07:03 PM
What university? Would UCO ever move out of Edmond into the Chesapeake campus? That would be interesting. Whatever it takes to get CHK downtown is a good thing. Although I doubt they move, especially if they are building up the area. And with a potential commuter rail stop at NW 63rd just east of the campus it could be one of OKC's largest future transit-oriented developments.Yes, UCO is going to move into the Chesapeake campus. The move will be completed in time for the fall of 2020 classes. UCO will become the University of Chesapeake Oklahoma. This is a done deal.

jbrown84
04-01-2008, 11:44 PM
I was thinking the other day, assuming that CHK's plans include residential and retail, if they were to go under or be sold, the retail and residential would keep the area afloat and the buildings could be bought up individually by smaller companies. Hopefully it doesn't come to that, though.

metro
04-02-2008, 07:56 AM
Or hopefully they will build the retail and residential soon