Patrick
01-28-2005, 09:05 PM
This article really tells a story about the present condition of property values in Bricktown, as well as a hint at a future retail store coming to the area.
Seems like property values are based more on the condition of the property, not the fact that it's located in Bricktown. Still, property values in Bricktown are up drastically.
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"Factoring Bricktown investment variables: 'Hit or miss property' still attracts national attention'
by Brandice J. O'Brien
The Journal Record
1/28/2005
Journal Record Photo
Ensuring prosperity in commercial real estate is near impossible. Bricktown is no exception. By 2003, property values had increased so drastically from 1999, it seemed that the numbers would continue to infinity.
Two years later, the outcome is as unstable as the risk of business. Property values may increase or decline without warning or promise of return.
"In November 1999 to 2003, the infrastructure improvements significantly increased the property values for today," said Mack Kilpatrick, an Oklahoma certified appraiser and member of the Appraisal Institute.
In 2003, the county assessor's office found that property values had increased 235 percent since 1999.
Today, the value of a property depends on the unit itself.
"It's not consistent from building to building," said Robin Roberts, executive vice president in economic development for the Greater Oklahoma City Chamber. "It's a range of things - shape, condition of building, the use, for retail or office space."
In Bricktown, it is not uncommon to see one building go for $150 per square foot and the one right next door, sell for $30 per square foot, said Charles R. Ainsworth, a real estate investor, broker and entrepreneur of the Ainsworth Co. For the past 25 years, he has worked in commercial brokerage and developed properties in Bricktown. Ainsworth also owns a building bordering the canal. His office looks down onto the popular waterway.
"Property values increase on a discrete basis," Ainsworth said. "It's hard to generalize on property values."
Much of a property's value in Bricktown is dependent on the condition of the building.
"You can't generate income without rehabilitation," Kilpatrick said.
A majority of Bricktown structures are at least 50 years old and have needed major renovation. In order to increase the value, someone has to spend the money for repairs.
"Private investment drives prices up," Ainsworth said.
Yet, even that doesn't guarantee success.
"Even if an older building is in shape, it doesn't mean that a tenant will come along and occupy the space," Kilpatrick said.
The entire adventure of owning or renting property in Bricktown is a challenge, every day.
"It's hit or miss property down here," Ainsworth said. "I've seen businesses fail, the property not get the cash flow and go back to the bank."
Yet, that doesn't stop people from coming.
Dalton Alford, who owns club Rane, has been leasing in Bricktown for three years. Later this year, he will open a modern clothing retail store called Shek in Bricktown with partner Christina Palacio.
"Oklahoma never had an entertainment district, so it was easy to see the growth and development across the nation," Alford said. "When our city put $100 million down, it was a no-brainer. It was too easy to see, because I'd already seen it in other entertainment districts around the nation."
Despite the unstable business, Bricktown's price per square foot is about $20 more now than it was five years ago.
In 2004, Joseph Chiaf purchased 6,500 square feet of space at 312 E. Sheridan Ave. for $86 per square foot, totaling $559,000, according to information compiled by the county assessor's office. In 1999, 310 E. Sheridan LLC bought 6,500 square feet at 310 E. Sheridan Ave. from David Nebham of Nebham LLC. A square foot cost $69.23 and the total price was $450,000.
"We saw several Bricktown properties sell for astronomical prices this past year, but you really have to study the buyers' motivations before you make any general conclusions about property values," said John Maisch, partner at Egressive Commercial Realty. "
Seems like property values are based more on the condition of the property, not the fact that it's located in Bricktown. Still, property values in Bricktown are up drastically.
-------------
"Factoring Bricktown investment variables: 'Hit or miss property' still attracts national attention'
by Brandice J. O'Brien
The Journal Record
1/28/2005
Journal Record Photo
Ensuring prosperity in commercial real estate is near impossible. Bricktown is no exception. By 2003, property values had increased so drastically from 1999, it seemed that the numbers would continue to infinity.
Two years later, the outcome is as unstable as the risk of business. Property values may increase or decline without warning or promise of return.
"In November 1999 to 2003, the infrastructure improvements significantly increased the property values for today," said Mack Kilpatrick, an Oklahoma certified appraiser and member of the Appraisal Institute.
In 2003, the county assessor's office found that property values had increased 235 percent since 1999.
Today, the value of a property depends on the unit itself.
"It's not consistent from building to building," said Robin Roberts, executive vice president in economic development for the Greater Oklahoma City Chamber. "It's a range of things - shape, condition of building, the use, for retail or office space."
In Bricktown, it is not uncommon to see one building go for $150 per square foot and the one right next door, sell for $30 per square foot, said Charles R. Ainsworth, a real estate investor, broker and entrepreneur of the Ainsworth Co. For the past 25 years, he has worked in commercial brokerage and developed properties in Bricktown. Ainsworth also owns a building bordering the canal. His office looks down onto the popular waterway.
"Property values increase on a discrete basis," Ainsworth said. "It's hard to generalize on property values."
Much of a property's value in Bricktown is dependent on the condition of the building.
"You can't generate income without rehabilitation," Kilpatrick said.
A majority of Bricktown structures are at least 50 years old and have needed major renovation. In order to increase the value, someone has to spend the money for repairs.
"Private investment drives prices up," Ainsworth said.
Yet, even that doesn't guarantee success.
"Even if an older building is in shape, it doesn't mean that a tenant will come along and occupy the space," Kilpatrick said.
The entire adventure of owning or renting property in Bricktown is a challenge, every day.
"It's hit or miss property down here," Ainsworth said. "I've seen businesses fail, the property not get the cash flow and go back to the bank."
Yet, that doesn't stop people from coming.
Dalton Alford, who owns club Rane, has been leasing in Bricktown for three years. Later this year, he will open a modern clothing retail store called Shek in Bricktown with partner Christina Palacio.
"Oklahoma never had an entertainment district, so it was easy to see the growth and development across the nation," Alford said. "When our city put $100 million down, it was a no-brainer. It was too easy to see, because I'd already seen it in other entertainment districts around the nation."
Despite the unstable business, Bricktown's price per square foot is about $20 more now than it was five years ago.
In 2004, Joseph Chiaf purchased 6,500 square feet of space at 312 E. Sheridan Ave. for $86 per square foot, totaling $559,000, according to information compiled by the county assessor's office. In 1999, 310 E. Sheridan LLC bought 6,500 square feet at 310 E. Sheridan Ave. from David Nebham of Nebham LLC. A square foot cost $69.23 and the total price was $450,000.
"We saw several Bricktown properties sell for astronomical prices this past year, but you really have to study the buyers' motivations before you make any general conclusions about property values," said John Maisch, partner at Egressive Commercial Realty. "