http://writerranger.zoto.com/img/45/f5b4e97e07e362f9e911e6ecf11f8fcd.jpg
http://newsok.com/article/1835997/?template=home/main

This is very interesting. I guess we really don't know what they're going to do with it, but I guess any action on that building is good action at this point. Hopefully, the philosophy suggested in that article plays out...

I liked that part about, "...dress her up and take her to the ball. Have a centennial ball in the Grand Banking Hall."

If they're willing to pay $21 Million, they must have some big plans indeed. How was that for an investment for the guys from New Jersey? Wow - paid 5 Million and got a 400% profit in seven years.

How was that for an investment for the guys from New Jersey? Wow - paid 5 Million and got a 400% profit in seven years.

Pretty good investment. Much better return than any stocks right now. Wish I had the money to invest like that.

Hopefully they have real plans and this isn't another blowing smoke promotion.

Very exciting!

To show you how far things have come in OKC is a very short time, that building was actually donated to Feed the Children for a tax write-off not that long ago.


We all know it has tremendous potential... The Grand Banking Hall alone is amazing.


The current momentum is really amazing!

http://newsok.com/article/1836101/?template=

note the following in the text:

"Sperry Van Ness’s Jason Little, who represented the buyers, said he could not provide specifics on the new owners’ plans for the office complex - if it remains as an office complex.

“They’re pretty creative and they’re not ruling anything out,” Little said. A prominent downtown developer, who did not want his name used, mentioned housing as a possibility when told of the sale. Recent conversions of office space to residential use downtown have changed the playing field."

What does everyone think of that?

How about a boutique hotel on the bottom with condos on the top?

The Grand Banking Hall would be a fantastic hotel lobby:

http://olive.newsok.com/Repository/getimage.dll?path=DOK/2006/05/06/17/Img/Pc0171000.jpg

http://newsok.com/article/1836101/?template=

note the following in the text:

"Sperry Van Ness’s Jason Little, who represented the buyers, said he could not provide specifics on the new owners’ plans for the office complex - if it remains as an office complex.

“They’re pretty creative and they’re not ruling anything out,” Little said. A prominent downtown developer, who did not want his name used, mentioned housing as a possibility when told of the sale. Recent conversions of office space to residential use downtown have changed the playing field."

What does everyone think of that?



I just really don't see that 32 story tower as housing...unless the developers tear off the facade and do something different with it. I don't know that I would want to pay the price to live in something without balconies and that looks like that tower does.

If this article deems true, this is almost too good to believe. I don't know if you all knew it or not but the Oklahoma Tourism Department recently opened its first downtown OKC location ever, and it's in the First National Center! This should definitely help tourism in downtown OKC and help the exposure of this building.

I just really don't see that 32 story tower as housing...unless the developers tear off the facade and do something different with it. I don't know that I would want to pay the price to live in something without balconies and that looks like that tower does.


Are you serious? I would kill to live in that amazing building. I can see how you would want a balcony but what about the appearance is such a turn off to you?

They certainly won't get away with tearing off the facade. That's ridiculous.

Are you serious? I would kill to live in that amazing building. I can see how you would want a balcony but what about the appearance is such a turn off to you?

They certainly won't get away with tearing off the facade. That's ridiculous.


I must be thinking of the wrong building...is this the Chase tower??? If not, which building is it?

No, Nuclear_2525. This is the tower with the mast on top of the building, which is Oklahoma City's second tallest tower. It is two block west of the Chase Tower. Sort of resembles the Empire State Building.

Ok, well then I agree, this would be a very cool building to have condos in!

California-based investors complete purchase of downtown OKC’s First National Center
Posted: Monday, May 08, 2006


A group of California-based investors completed their purchase of the historic First National Center office building May 5. The building is located at 120 N. Robinson in downtown Oklahoma City.

Alliance Property Investments, Inc. and Carla Ridge, LLC acquired the 990,927-square-foot property as joint tenants in common for approximately $21 million. The building will be managed by Milbank Real Estate Services, Inc. The seller of the building was First National Center, LLC.

Tim Strange and Brett Price represented the seller in the transaction and Jason Little and Gary Gregory represented the buyer group. All four brokers are associated with the Oklahoma City office of Sperry Van Ness. Fariba Atighehechi with REMAX/Beverly Hills also assisted on the buyer side of the transaction. Eric Offen and Michelle Roberts of Lawyers Title of Oklahoma City, Inc. handled the closing.

“This was a tremendous opportunity for the buyers to acquire a landmark building in the center of downtown. They appreciated the uniqueness of First National and its place in Oklahoma City’s history” said Strange.

According to Little, the buyers were attracted to the property by not only its historic status in downtown Oklahoma City, but also the tremendous upside potential First National Center presents. He added that the new ownership plans to spend several million dollars in improving both the interior and exterior of the property and enacting an aggressive marketing plan to attract new tenants to the building and greatly improve on the building's current occupancy of 34 percent.

“The buyers are planning extensive renovations and improvements to the building in order to reposition it as the crown jewel of the downtown office market,” said Little.

The buyer group is associated with Los Angeles-based Milbank Real Estate Services who has a 25-year history of repositioning historic buildings like First National Centers, into top-tier office buildings. Milbank is involved in not only the development of mixed-use commercial and residential projects throughout the country, but also, the management of commercial office buildings.

Through its headquarters in Los Angeles, Milbank manages the Class A trophy building called Figueroa Tower, located in the Financial District of downtown Los Angeles' Central Business District, and has been awarded Building Owner and Managers Association's “Office Building of the Year Award" twice. Also in Los Angeles, the buyers are working on "The Roosevelt", a $125 million redevelopment of the historic Roosevelt Building from offices into 223 unit luxury condominium loft units. Milbank is also involved with the development of a $325 million, 45-story luxury condominium tower located directly on the Las Vegas Strip, appropriately named, "Sky Las Vegas." Other projects include the development of two 35-story luxury condominium residence towers in Phoenix and several other yet to be publicized projects in New York City.

Located at the intersection of Park and Robinson, First National Center has been a downtown icon for about 75 years. The building was constructed in three phases over a period of 41 years. Originally called the First National Bank Building, phase one consisted of the building's iconic 33-story Art Deco-style tower located on west side of the property. The tower is home to the building's most unique features including the 12,000-square-foot, two-story Great Banking Hall, which features massive fluted columns, an arched artificially lit skylight and original wall murals. Phase two of the building was completed in 1957 consisting of First National Center's 14-story central tower. The building was officially completed in 1972 when the 14-story east building was completed.

The plot thickens... Thanks Malibu. It certainly sounds like it is in good hands.

It's very hard to say what the new owners may have planned based on their track record.

On one hand, they've taken similar buildings and upgraded them into much better office properties.

But it also looks like they've done a lot of office-to-condo conversions and their more recent projects have all been residential.


I just hope that the Grand Banking Hall is still sowewhat made available for public use, like for events or as a restaurant or lounge.

Now may be the time for First National Center

By Steve Lackmeyer
The Oklahoman

With renovations under way at the Skirvin Hotel and Colcord Building, downtowners have spent more and more time fretting over the fate of the First National Center.

The 1-million square-foot complex is just as historic, but also bigger than the Skirvin and Colcord combined. And having stood about 70 percent empty for the past decade, its struggle stood as a reminder that downtown Oklahoma City's revival is not complete.

Everybody downtown is celebrating news of the new California-based ownership group. The old owners weren't popular in all circles; they came into town with expectations that they would plow millions into renovations, and would bring the building back as the jewel of downtown.

Instead, the building lost tenants who had stayed loyal for decades. Renovations occurred only as new tenants were signed up. But the New Jersey-based owners, Joel S. Hoffman and Mitchell Wolff, also kept the lights on and the elevators operating.

Just ask developer John Weeman how much easier, and less expensive, renovations at the Skirvin might have been if it hadn't gone dark for 18 years.

Challenges await the new owners. The property has taken its share of hits since Boatman's Bank, now Bank of America, abandoned it for the modern Leadership Square across the street.

One plan after another to return life to the tower's Great Banking Hall fell apart. At various times, it was eyed as a possible new home for the Oklahoma City Museum of Art, law offices, a restaurant and even had a federal grant pledged for renovation into a business incubator.

The complex (three buildings) lost a key asset when another former owner, John Kennedy, gave the office buildings to Feed the Children, but kept ownership of the attached Main Street Parking Garage. He did that despite pledges of $14 million in grants and low-interest loans offered in 1997 by then-Mayor Ron Norick.

Obtaining similar financing now may no longer be so easy. City officials have warned repeatedly they are running low on grants and loan funds offered through the Department of Housing and Urban Development, having committed much of it to the Skirvin, the Dell campus and the Native Indian Cultural Center.

But the city also has other funding available that wasn't around a decade ago. New owners might look at whether they can use "vertical brownfields" grants, which address environmental issues in old buildings. And the downtown tax increment financing district in recent months has been used to finance exterior renovations, garage construction and other improvements under the theory that such work can benefit the public.

The challenges ahead for First National are plenty. No one likes bathrooms located between floors, and the windows are all overdue for replacement.

Just how serious the new owners are about reversing the building's course may be as simple as looking for the time on the vintage clock that has greeted visitors to the corner of Park and Robinson for decades. The clock has been broken for months.

Just as the time finally arrived for the Skirvin and Colcord, this year might just be a pivotal moment for First National. Downtown is running low on large blocks of Class A office space, though the rush for housing may also make the First National an ideal target for reuse as condominiums (just imagine what someone would pay for the view from the former home of the Beacon Club).

The new owners are pledging to spend millions to bring the First National back to prominence. Downtowners are hoping the West Coast will come through where the East Coast did not.

Anyone have any news on this? This building is the topic of a blog entry I'm making today at my new blog, http://dougdawg.blogspot.com/ .

Still standing as of yesterday! LOL.

Doug, Maybe somebody here has connections or friends at Sperry Van Ness? Tim Strange seems to be the spokesperson for the buyers. I'm with you - I'd like to hear an update.

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Malibu that image gave me chills. Wow.

Count on it to be turned into Condos. Alliance Property Investments and Carla Ridge, LLC are reprsented by California based Milbank Real Estate Services. All three companies are owned by M. Aaron Yashouafar. Just do a google search for his name and you will see that he builds lots of condos.

I dont know about that.

We do have a new Headquarters arriving in OKC (the MG North America/Europe group) that will need digs., As well as the Oklahoma City Sonics/Storm organization.

I do hope that these (and other) companies locate DOWNTOWN. And a renovated FNC would represent the best office space in the city, especially if it is moved up to Class A.

Maybe, FNC will get a mixed use, perhaps.

I think an Office/Hotel/Residential mix would be nice there. But the residential will be a tough sell unless the building(s) are modified to include parking (like the Braniff Tower project just announced).

I personally would not mind at all... if they got rid of those "additions" to the FNC and just left the tower. What would be EVEN better, is if they demolished the additions (keeping the tower), built subterranian parking underneath the existing addition's footprint, then rebuilt quality new tower(s) in their place.

Yes, Im dreaming -- but it would certainly be nice if were true!!!

Count on it to be turned into Condos. Alliance Property Investments and Carla Ridge, LLC are reprsented by California based Milbank Real Estate Services. All three companies are owned by M. Aaron Yashouafar. Just do a google search for his name and you will see that he builds lots of condos.

It will be interesting. Here's his online portfolio:
http://www.milbankre.com/portfolio.php

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MG already said they're looking at a site near ou health center & pres. health. Somewhere in the whole area but i dont remember exactly. It's proposed to be a new 8 story building. Now back to the topic... sorry

Interesting about their portfolio...

Only one property is outside of California and that's just across the border in Henderson, NV.

They certainly have the resources to do something special with that building, no matter what course they choose.

HOTROD, even though the FNC expansion is not particularly attractive, I would rather see new construction go up on the many surface parking lots and other empty lots we have before we tear ANYTHING down. Just my opinion though. I do think the main entrance and the great banking hall would make a very fine hotel lobby.

Work to begin today on restoring downtown landmark

By Steve Lackmeyer
The Oklahoman

For the past three months, new owners of First National Center have flown from Los Angeles to Oklahoma City for bi-weekly visits, quietly putting together a plan to return the fading 75-year-old landmark to its former glory.
Unlike previous owners, Milbank Real Estate Investments' officials shied away from publicity, granting no interviews, remaining a mystery even to their tenants. Now, they're ready to talk -- but only as visible renovations are set to begin today.

"We stand by our word," said Raymond Yashouafar, Milbank's vice president of operations. "We have a good reputation where we've already done work. The previous ownership made a lot of promises, and didn't follow through. We don't do that."

They are making one promise: First National will again be the pride of downtown Oklahoma City.

Exterior clean-up to begin today
Asset manager Simon Barlava said this week will mark a formal introduction for the new ownership. An exterior clean-up is set to begin today that will include window and clock repairs, polishing of the marble facade and the tower's aluminum relief panels.

Barlava said he hopes to coordinate an improvement of sidewalks, lighting and landscaping with a possible downtown-wide streetscape being planned by the city. He said new flags will fly at the tower's entrance Monday morning, declaring the start of a new era.

"It's a beautiful building outside," Barlava said. "It's been neglected as have other areas of the building for many years. The facade is about to get a clean-up."

More renovations will follow, but the owners warn progress will require patience. Tuesday, the company officers will unveil their master development plan with a private gathering of the city's business and civic leaders. Only after that meeting, they say, will their long-term plan be made public.

The Los Angeles investors surprised the local real estate market in May when they bought First National for $21 million. Barlava said previous owners failed to realize they needed to invest in a full overhaul of First National, built in 1931, to realize the property's full potential.

Barlava points to their renovation of Los Angeles' Roosevelt Building as an example of their success in restoring old buildings.

The 15-story building, built in the 1920s, was neglected and only 20 percent occupied when it was bought by Milbank.

He said the company invested $100 million in the property, and occupancy shot up to 85 percent. The building is being renovated again -- this time into condominiums.

"That building has been a complete turnaround for us," Barlava said.

Taking the right steps
Dave Lopez, president of Downtown Oklahoma City Inc., said he's observed the new owners are taking the right steps toward a successful turnaround.

"Since the purchase of First National, I've tried to hold my optimism in check," Lopez said. "I know the challenges that building presents. But at every point, the new ownership has responded very positively to what needs to be done."

The time for an overhaul of First National is overdue, Lopez said. Barlava said he and his partners share locals' frustration with previous failed efforts.

"The last owner has caused more of a hurdle for us to get over than anything else in the last five months," Barlava said.

"We're getting a fair shake, but everybody is waiting to see if we are another in the long line of owners who make promises and do nothing. Our philosophy is we don't make promises ... We want our actions to speak for themselves."

That's awesome... I hope they mean what they say. I can't wait to see the plan on Tuesday..

The article was from Saturday's paper so the work actually began then.

Oh okay, so the plan is unveiled today, not next Tuesday - blonde moment .lol Please post info on the long-term /master plan if you find out anything..

awesome... totally awesome.

So we should hear about some big plans sometime today.

I have seen the Roosevelt buidling in downtown L.A. and it's beyond impressive.

Regardless of whether it's offices, condos or both, this project is probably the most important in downtown OKC since the Skirvin.

Really looking forward to hearing more about their master plan.

I have seen the Roosevelt buidling in downtown L.A. and it's beyond impressive.

Regardless of whether it's offices, condos or both, this project is probably the most important in downtown OKC since the Skirvin.

Really looking forward to hearing more about their master plan.

I'm with 'ya Malibu. This could be very exciting.

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I have to say I'm disappointed with this announcment. They spent $100 million renovating the Roosevelt but are only planning on $6 million for the FNC.

I'm hoping this is just a first step:


Owners vow First National revival

By Steve Lackmeyer
The Oklahoman

The new owners of the First National Center pledged Tuesday they are prepared to spend at least $6 million on renovations and are considering converting some floors into housing.

Owners of Los Angeles-based Milbank Real Estate shared their plans Tuesday morning with about 50 civic and business leaders gathered at the Oklahoma City Golf and Country Club.

Chief Executive Officer Aaron Yashouafar and Raymond Yashouafar, vice president of operations, reiterated promises to return the building to its glory days -- including a concierge service that was eliminated several years ago.

The family-owned company bought First National Center in May for $21 million. In recent months it has begun planning for renovations that include gutting and reconfiguring empty office floors, removing asbestos in the east tower and hiring Beck Associates, a tenant, to draw up architectural plans.

They said they are deliberating how to lease the tower's Great Banking Hall and still keep it open to the public.

Talks are under way with prospective tenants, including two banks and a law firm.

"It's too beautiful of a space to be rented out," Raymond Yashouafar said. "But at the same time, it's a very important and significant space for us."

Raymond Yashouafar said he is uncertain whether Milbank can relocate rest rooms, which are now between floors on the original 75-year-old Art Deco tower.

"Obviously, with these older structures, there are limitations," Aaron Yashouafar said.

"We cannot make an older structure, a historic building, to be identical to a modern building. But there are other qualities, charms and characteristics you can't find in a newer building. It's a give-and-take."

Why did he mention their $100 million investment in the Roosevelt only to disappoint everyone by announcing that they are spending a measly $6 million on FNC?

That seems a little light to me, too, Mailbu. Maybe they don't see as much needing to be done. I do like their initial sensitivity to keeping the banking hall open. What happened to the Oklahoma Tourism Board occupying that space after it left the Colcord?

It would make a great hotel lobby. Maybe they don't have hotel experience. They could lease or sell the lobby and some floors to a hotel management firm.

How tall is it? 30 stories?

And remember, that was $100 million several years ago. With construction costs what they are currently, that's more like $150 MM in today's dollars.

I'm hoping they want to do this in stages... Fix up the outside and the lobby, do some other general clean up then see what the market looks like.

With the Roosevelt, they spent a ton making it a premier office building only to later (within a couple of years) start a complete condo conversion.


They've got the resources and expertise so hopefully there will be a good market reaction to their first steps that will lead to a much bigger investment.

And remember, that was $100 million several years ago. With construction costs what they are currently, that's more like $150 MM in today's dollars.

Yes, but it's also LA construction costs.

I would encourage no rush to judgment about this announcement and the raw dollar figures. The two key words in that sentence could possibly be, "at least." Brown is right to point out that compared to LA, Six Million dollars can go a long way in Oklahoma City. Let's give these people a chance - I think there's great potential here.

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I'm hoping they want to do this in stages... Fix up the outside and the lobby, do some other general clean up then see what the market looks like.

I hope so, too. And that would make sense. Because...


Brown is right to point out that compared to LA, Six Million dollars can go a long way in Oklahoma City.

but 100 million in LA may also yield a better ROI in real dollars than 6 million in OKC. The property is simply worth that much more in LA to begin with. These guys could spend 100 million in OKC and LA and make it back in LA five times faster.

This is one reason why we shouldn't always be so quick to champion our low property values. It makes it cheap for development, but also yields a lot less revenue. I don't think it's as far apart as 100 million to 6 million, but the risk is also greater.

This is one reason that I believe projects like this are much better for downtown's long term viability. If they can at least get it up to market standards, then they can fill it up and almost single handedly imrove vacancy rates to a level that increases the value of their equity at a rate very favorable to their debt structure. At that point, their motivation to improve the property, as well as that of other developer/owners, goes up. We all want additions to the skyline, but, at this point, that could have the reverse effect.

Writeranger is right, I think we should all wait and see.

I attended the announcement yesterday at Fortune Club and the Milbank group seems very honorable and very cautious with their words. I believe they plan to renovate the First National in stages and not come out of the chute making promises that they can't keep.

They said they are very successful with their ventures because they take time to learn the "local customs", not blow in from out-of-town thinking that their way is better.

I think they are aware that we have all heard big talk from past owners and they want to take their time with First National and do it right, not talk big and change their plans down the road.

They also did not rule out housing in the upper tower. They are waiting to see how the market accepts current projects in development.

Wait and see!!
Kim

In fairness to them, there have been a lot of broken promises regarding that building and they are no doubt trying to be conservative in their promises so they can meet them and establish trust.

Let's hope the local response warrants lots more investment on their part.

learn the "local customs"

Welcome to the good ole boys! ;)

That is smart and if they pledge 6 million dollars to that building now, it is much more likely they spend it. If it was 100 million dollars, I'd have to say I'd be worried if dollar one would be spent.

By my calculations, the $6 million renovation will bring their total investment to $27 million in FNC. They spent $21 million buying FNC. I'm sure they weren't given the Roosevelt for free so the purchase price would be included in their $100 million figure.