General state of real estate market as we plan a move...

[Pete]

Regarding the Nichols on Sherwood, this was yet another Aubrey McClendon boondoggle.

During his crazy landgrab, Chesapeake acquired 29 of the 31 units in this building for more than $5.1 million, about $176K per even though the average assessed price was $73K.

Then, after holding them for quite a while, they dumped all 29 units to the present owner for $1.55 million, or about $53K per.

[Richard at Remax]

Side note, with it being a massive sellers market and tough to buy, there is a huge opportunity for someone to fill the void with furnished short term rentals. It is slim pickins out there.

[The Shadow]

Regarding the Nichols on Sherwood, this was yet another Aubrey McClendon boondoggle.

During his crazy landgrab, Chesapeake acquired 29 of the 31 units in this building for more than $5.1 million, about $176K per even though the average assessed price was $73K.

Then, after holding them for quite a while, they dumped all 29 units to the present owner for $1.55 million, or about $53K per.

$176,000 per!!!!

...and his plan was to raze Sherwood Arms along with the other two adjacent condominium developments.

[Pete]

^

Despite spending over $15 million, Chesapeake was never able to acquire all the units in Sherwood Arms, Grand Mark and Nichols Hills Manor.

They ended up selling all the units in those 3 projects for way, way less than they paid.

I need to total up the net loss Chesapeake has taken in all the non-campus properties they acquired. It's at least $100M and still counting.

[gopokes88]

^

Despite spending over $15 million, Chesapeake was never able to acquire all the units in Sherwood Arms, Grand Mark and Nichols Hills Manor.

They ended up selling all the units in those 3 projects for way, way less than they paid.

I need to total up the net loss Chesapeake has taken in all the non-campus properties they acquired. It's at least $100M and still counting.

I mean given how much they lost in the oil business, that's not too bad really

[runOKC]

I mean given how much they lost in the oil business, that's not too bad really

Lol maybe if you are only comparing the $$$ but any publicly traded company losing millions on frivolously-purchased assets is a bad thing.

[Jersey Boss]

Lol maybe if you are only comparing the $$$ but any publicly traded company losing millions on frivolously-purchased assets is a bad thing.

Crony capitalism on display.

[Richard at Remax]

I'd say more crony foolishness. Spend money and act like a big dog only to lose a ton.

[SouthOfTheVillage]

I'd say more crony foolishness. Spend money and act like a big dog only to lose a ton.

This. It’s well known that Aubrey was very obsessed with the Maps — of o&g prospects and OKC’s CRE.

In both cases, he wanted to establish large continuous blocks of prime assets under CHK’s control, even if establishing such control was prohibitively expensive.

There are stories of him spotting a blank space on an acreage map, kicking a landman out of the meeting with directions to “not come back until this piece is in hand,” and the landman returning 15 minutes later with news that the deal was done, albeit at a premium price.

[mugofbeer]

Crony capitalism on display.

I think he had a vision to transform the area all the way to the Broadway ext. as a high class, mixed use zone similar to Cherry Creek in Denver or NW Hiway/Preston in Dallas. If gas prices had stayed high, he might have achieved it but he failed due to his own revolutionary use of fracking. It killed him and transformed the entire world oil/gas market.

[runOKC]

^True, but is it not questionable to speculatively buy commercial real estate at above market prices with investors’ money when you are an O&G company?

[Ollie]

I had heard from others that Oklahoma has an intriguing history - both distant and recent. I have almost no idea what you all are talking about and to google him to even figure out who Aubrey McClendon was. Lots of reading to do.

Getting even more excited for the move!

Seems like there are actually a fair number of options for furnished apartments as i dig into this but wow are they pricy (perhaps for the reason Richard stated). Most seem to run 3-4x the price of the same unfurnished unit. Going to have to think carefully about this. No idea how long it will take us to find a home we like given our pickiness and the limited housing inventory.

[gopokes88]

I had heard from others that Oklahoma has an intriguing history - both distant and recent. I have almost no idea what you all are talking about and to google him to even figure out who Aubrey McClendon was. Lots of reading to do.

Getting even more excited for the move!

Seems like there are actually a fair number of options for furnished apartments as i dig into this but wow are they pricy (perhaps for the reason Richard stated). Most seem to run 3-4x the price of the same unfurnished unit. Going to have to think carefully about this. No idea how long it will take us to find a home we like given our pickiness and the limited housing inventory.

Read Boom Town and The Frackers

[mugofbeer]

^True, but is it not questionable to speculatively buy commercial real estate at above market prices with investors’ money when you are an O&G company?

There's no reason an O & G company can't diversify their function. Compared to the overall operation, this was just a small part. Sometimes to achieve an investment goal, you may have to overpay on part. The company had invested a huge amount in their HQ. Had oil and gas prices stayed up and he successfully compiled the huge piece of real estate and successfully built a mid/hi end mixed use development across the area, he could have easily made a huge profit across the development.

[gopokes88]

^True, but is it not questionable to speculatively buy commercial real estate at above market prices with investors’ money when you are an O&G company?

Aubrey had a significant amount of power in his employment agreement. Setting wall streets money on fire is fine by me

[AnguisHerba]

Read Boom Town and The Frackers

Second this! Boom Town is an exciting "people's history" of OKC through the lens of the Thunder NBA franchise. Even if you don't like basketball/sports, you'll like the book. The Frackers is a great biopic of the big names in the shale revolution, including McClendon and another big O&G name, Harold Hamm. The book touches on something mentioned in this thread, McClendon's obsession with maps.

[okcoolcoolcool]

Another suggestion is the Yukon area, which is on the near west side and a 20 minute drive on I-40 to OUHSC. Very middle to upper class and schools are good. In the past 8 years there has been a 60 million dollar input into the school system (technology, new high school and new mid-high.
Real estate is hot, we sold our 2,800 sq ft in 4 days for $300,000.00 and bought a $385,000.00, 3,100 sq ft 5 bath with pool and spa one block away (we downsized from a 2 story). This was all in the summer of 2020. Also with the new turnpike access I get to Will Rogers airport in about 10 minutes.
Good Luck

+1 with an additional mention to Mustang. Growing up here and not being a place I'd recommend to someone from out of state, the entire Mustang/Yukon area has absolutely exploded and both school districts have come a super long way. It's not quite as polished of an area as Edmond, but definitely much more accessible. Also a lot of pretty good builders have set up shop around the established neighborhoods so there are a ton of houses and styles to choose from.

[progressiveboy]

There is bidding wars going on all over the DFW area with people paying $25,000 to $50,000 over asking price. Some of it is due to low inventory. It is a seller's market down here! I just am wondering when the housing bubble is going to burst?

[Bunty]

I was quite thrilled to get a update from Zillow that showed my 3 bed, 1744 sq. ft. renthouse in Stillwater had gone up in price from $149,000 to $165,000. Never had it been valued that high. This even though there is little to nothing going on in Stillwater as far as new business and industry coming in. So surely home prices in Edmond, Norman and other suburbs have been going up even far more silly crazy.

[Ollie]

It really is nuts. Our 3 bedroom in NC has somehow gone from 325 to 480 (zillow price) in ~4 years with most of that change happening in the last year. I don't think we'll get 480 but still. When we were first talking about moving, I told my wife if we get 350 I'm content if we get 400 I'm thrilled and it looks like we may get well above that.

We'll see what its like once we're there. Maybe it slows down a little in summer and we can find something.

[oklip955]

Bunty, land prices are getting real crazy from what I hear. Its all going up up up.

[Bunty]

Bunty, land prices are getting real crazy from what I hear. Its all going up up up.

Two years ago, 10 acres of land for $83,000 could be had near the north edge of Stillwater just off Highway 177. I bet the price has surpassed $100,000 by now.

[Jeremy Martin]

Realtor friend of mine has a theory about the current housing market. She thinks that the pause on foreclosures has reduced inventory and helped drive the market up. Her opinion is that in 3-6 months some of that inventory will start making it's way onto the market along with a number of new spec homes that are being built right now. If you can wait it out the market should correct soon.

[Ollie]

Realtor friend of mine has a theory about the current housing market. She thinks that the pause on foreclosures has reduced inventory and helped drive the market up. Her opinion is that in 3-6 months some of that inventory will start making it's way onto the market along with a number of new spec homes that are being built right now. If you can wait it out the market should correct soon.

Think there are lots of factors. Foreclosure moratorium might contribute though its hit job market sectors where home ownership is probably lower to begin with just because incomes tend to be lower. Lumber supply shortages have severely disrupted new builds. A lot of people "want" to move because priorities/necessities shifted around during COVID. I'm sure there are some people that want to sell but aren't comfortable having dozens of strangers traipsing through their home right now. All adds up to supply being choked, which drives up prices. Now I think prices are being driven as much by panic as anything else.

Our house in NC officially went up for sale yesterday. 10 showings scheduled in less than 24 hours. I'm in the slow, undesirable part of town and we <thought> we were pretty ambitious with the pricing.

Now I'm just hoping we'll be able to actually find a house in Edmond! Baby on the way in October, otherwise I'd be seriously inclined to just plan on renting for a year to see what happens.