SandRidge Center & Commons

[Steve]

Another photo (identify the neighborhood):

[Steve]

Now, name the city where this building is located:

[Popsy]

It's been two years since SandRidge bought the buildings. They were previously owned by Kerr-McGee, which has an agreement with the Anthony McDermid group to turn them into housing. That project was well underway when Kerr-McGee was acquired by Anadarko Petroleum. The residential development project then ended up in a court battle while the entire property was for sale, tying up the buildings from any redevelopment. This wasn't cleared up until the entire campus was bought by SandRidge.
There has not been a time, to my knowledge, in the past five years when there hasn't been a serious, accomplished developer (more than one) wanting to adapt these buildings into housing.
The question here is one I've asked before: what is the balance between what an owner wants to do with their downtown property and the community's interest in maintaining what's best for long-term urban density and design?

Steve. Why did McDermid sue instead of trying to purchase the buildings from KM? Was it because he had no money to bring the project to fruition without KM providing the majority of the money and if so, was he one of the serious, accomplished developers you referred to? Are you at liberty to name the other serious, accomplished developers or is McDermid the only one?

Also, you reference once again, the community's interest in maintaining what's best for long-term urban density and design. I asked you earlier for your thoughts as to what is the critical minimum point at which the number of people in OKC determine what the community's interest is and you never responded. Could I possibly get a response this time?

[Steve]

The suit stemmed from the fact that Kerr-McGee and Anadarko were no longer willing to proceed with the development deal and sale.
I'm not at liberty to name the developers. But they've both completed and financed successful housing projects downtown and they do not include McDermid.
As for the critical number of people ... I'm not sure how to answer that. That's not the way governance works. Not really. Instead, you have a council and mayor who are elected by the city. And the city council and mayor, over time, have pursued more aggressive urban design standards for the urban core following the input of what I'd say is at least a couple hundred leading downtown business owners, property owners, architects, builders, etc.

[Popsy]

Thanks for your reply, Steve.

[Steve]

Here's something better than me going off of memory (the suit was settled when SandRidge bought the campus):
Lawsuit continues over tower
Judge refuses to dismiss case involving a failed condominium plan at former Kerr-McGee complex

By Steve Lackmeyer
Business Writer


--------------------------------------------------------------------------------
Saturday, July 14, 2007
Edition: CITY, Section: BUSINESS, Page 1B

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Thursday's sale of Kerr-McGee tower to SandRidge Energy apparently won't end litigation over a failed deal to convert three older buildings on the former Kerr-McGee downtown office complex into upscale condominiums.

A motion by attorneys for Kerr-McGee and Anadarko Petroleum to have the lawsuit dismissed was rejected by Oklahoma District Judge Noma Gurich, who urged both sides to consider a saying by Ralph Waldo Emerson: "Nothing astonishes men so much as common sense and plain dealing."


Corporate Redevelopment Group filed the $8 million suit a year ago as Kerr-McGee announced it would be acquired by Anadarko Petroleum, which is based in The Woodlands, Texas. The partnership, led by architect Anthony McDermid, had worked in conjunction with Kerr-McGee CEO Luke Corbett on the project. Corbett said the project would proceed when the Anadarko deal was announced, but the deal fell apart soon after.


Corporate Redevelopment Group claims Kerr-McGee prevented fulfillment of the deal by blocking a mortgage on the older buildings that would have financed construction of a new garage required by the development contract. Kerr-McGee attorneys argue the development contract never allowed for mortgage financing.


"The mortgage issue overshadows everything," said James Chaney, attorney for Corporate Redevelopment Group. "We believe there was a general duty to cooperate. That means they had to agree to reasonable proposals for financing."


When the mortgage was denied, Chaney said the developers offered to pay a deposit — an offer he said was denied. Chaney said his clients grew more concerned as they realized they were not dealing with a public company, but rather a private affiliate, Kerr-McGee Shared Services.


How or whether Chesapeake Energy and SandRidge Energy might be a party to the litigation following the companies' acquisitions of properties involved in the lawsuit remained unclear after Friday's hearing


Attorney George Corbyn said he continues to represent Kerr-McGee Shared Services.


In arguing for a dismissal of the suit, Corbyn's co-counsel, Houston attorney Benjamin Elmore, told Gurich the contract between Kerr-McGee and Corporate Redevelopment Group never specifically allowed for mortgages to be used to finance the garage.


"If Corporate Redevelopment Group were to default, the banks would look first to those mortgages and Kerr-McGee would lose properties without any consideration," Elmore said.


Corbyn alleged Corporate Redevelopment Group attempted to hamper the sale of the tower once Kerr-McGee's fate became known.


"There is a lot in this lawsuit that relates to the tower because we believe they were trying to cloud the title," Corbyn said.


"But thankfully, we were able to overcome that."


Chaney argued Kerr-McGee was a partner in the development — and was going to use parking for its employees and also would retain a penthouse condominium in the Braniff Towers.


Chaney also denied his clients ever intended to block the sale of the building or cloud its title.


"It is impossible to read these provisions without concluding that the parties contemplating that Kerr-McGee would provide a mortgage on these old decrepit buildings in order to finance these projects that would enhance and compliment the tower," Chaney said. "Even if there were no expressed provisions for a mortgage, they had a duty to cooperate."


Gurich's denial of the motion to dismiss means the battle will soon be sent to a jury.


Pre-trial hearings are scheduled for Sept. 5, with the trial set for Sept. 10.

[Popsy]

Thanks for the information and no I did not intend to place a question mark at the end of my previous post. It has been corrected.

[Spartan]

Assuming Sandridge won't sell, do you think they might be interested in doing other downtown building Steve? After all, these can't be the two most prime building to convert to residential.

I would disagree. These two buildings are quite possibly THE most strategic for residential conversion. I think that, barring any asbestos issues, they would be easier to convert than the First National. The location is just as good if not better. Not so much surrounded by sheer offices, closer proximity to mixed-use neighborhoods like MidTown and Deep Deuce. Throw in the other possible lofts in the vicinity, like the Carnegie if it ever gets off..and you've got a great location amidst one of our city's great streetwalls. Streetwalls are great environments for lofts. The best.

Granted, you can spin any location into sounding like "the most strategic."

[Kerry]

"Someday," Kerry, is just that - "someday."
Someday I hope to take my kids to Disney World.

Let me know when you come down. I'll drag the wife and kids over and give you the grand tour. My wife is just looking for a reason to get annual passes again this year.

[Steve]

Sounds good Kerry!

[Kerry]

I would disagree. These two buildings are quite possibly THE most strategic for residential conversion. I think that, barring any asbestos issues, they would be easier to convert than the First National. The location is just as good if not better. Not so much surrounded by sheer offices, closer proximity to mixed-use neighborhoods like MidTown and Deep Deuce. Throw in the other possible lofts in the vicinity, like the Carnegie if it ever gets off..and you've got a great location amidst one of our city's great streetwalls. Streetwalls are great environments for lofts. The best.

Granted, you can spin any location into sounding like "the most strategic."

I don't know Spatan. I think FNC has the best potential as a residential building. Not only is it closer to more of the reasons people live downtown for, but there are tons of retail space nearby that could be used. I wonder how many housing units you could get in FNC.

[Spartan]

Probably not as many as you think. You'd be able to get at least half of those out of KerMac and Braniff.

[Kerry]

Probably not as many as you think. You'd be able to get at least half of those out of KerMac and Braniff.

909 Walnut in Kansas City is 35 stories and they got 159 units out of it.
Kansas City Lofts :: 909 Walnut

Regency Tower, at 24 stories, has 274 units. The Park Harvey building has 162 units and it is only 17 stories. I'll bet you could get close to 200 units out of the FNC building.

[Steve]

That would require getting in approximately 8-9 units in each floor of the tower. Not sure that's possible unless they about 500 square feet each

[bombermwc]

As Steve points out, the floors of the main iconic tower are pretty small as far as square footage goes. Now, the ugly as crap additions, that's different. But really, you won't get near your bang for your buck out of residential as you do for commercial now. There are plenty smaller offices that make that place home. It's the classic chicken/egg story as far as that building's revival. It won't get better until someone puts money into it. No one will put money into until it gets better. The current owners aren't any better than any of the other failed promise owners. It's pathetic and sad to see such a gem continue to tarnish.

I'd still like to shoot whoever designed the additions and who approved those designs. Complete crap.

[OKC@heart]

Isn't today the day that Sandridge is supposed to release their plans for the Buildings and plaza? Does anyone know what time and where we can gain the access to that info?

[Spartan]

That would require getting in approximately 8-9 units in each floor of the tower. Not sure that's possible unless they about 500 square feet each

Didn't the Braniff proposal a few years ago have like 80 units in it?

[Kerry]

As Steve points out, the floors of the main iconic tower are pretty small as far as square footage goes. Now, the ugly as crap additions, that's different. But really, you won't get near your bang for your buck out of residential as you do for commercial now. There are plenty smaller offices that make that place home.

Actually, after Devon leaves in a few years the building will be almost 100% vacant. Anyone know what the average floor size is of FNC once you get up in the tower? The small floor plate is probably why 909 Walnut only got 159 units out of it.

As for the crappy additions. If FNC went residential/hotel, I would tear those down and put in a parking garage with roof top pool and tennis courts. I would try to keep as much of the facade as possible to retain the steet wall along Park.

[Spartan]

Well I think that the "ugly additions" could still be adapted into some kind of cool reuse. That sort of falls into the realm of architecture that could be saved, might be worthwhile in saving one of these days. I understand the criticisms of international design, and if someone suggested it not being worth saving, I wouldn't argue.

But also look at it like this: Are we only supposed to preserve buildings from a certain time period that's back en vogue? Granted, at the same time mid century architecture began to appear buildings stopped being as urban, but if preserved you can make mid century buildings very cool.

[Kerry]

Granted, at the same time mid century architecture began to appear buildings stopped being as urban, but if preserved you can make mid century buildings very cool.

I don't think so. Ugly is ugly even if people at the time wanted to pretend it wasn't so they could appear trendy and cutting edge.

[Steve]

Actually, after Devon leaves in a few years the building will be almost 100% vacant..

That's not true. Devon's space is predominately in the east building facing Broadway, not the tower. Now the east tower - yeah, it will be empty, but will be blessed with a lot of Class A worthy space.

[Kerry]

Hold on now, let's do the math here. FNC has 1,000,000 sq feet. Last I heard it's occupancy rate was in the mid to low 30's, so lets call it 35% just to be safe. That is 350,000 sq feet. When Devon leaves they will vacate over 200,000 sq feet (we'll round off to 200,000). That leaves 150,000 out of 1,000,000 or 15%. Now let's say the building is 30 stories tall (once again rounding off). That means only 4.5 floors of that building are being used. In my book that is considered mostly vacant.

Finally, is FNC even considered Class A?

[Steve]

Occupany is higher now, but I don't have the exact figure. As for class a, no it's not close to being class a. but the interior finish out is up there for some of the space taken by devon

[Dar405301]

does anybody know anything about the supposed unveiling of sandridge's plans for the complex that scheduled for today?

[OKC@heart]

Isn't today the day that Sandridge is supposed to release their plans for the Buildings and plaza? Does anyone know what time and where we can gain the access to that info?

Anyone...?...