Case Ready to Start $21M Jenks M-F Project After Delay for Flood-Control Compliance

By Gabriel Circiog, Associate Editor

Case & Associates is ready to kick off a 260-unit multi-family project in Jenks after a recent delay mandated by federal flood-control regulations.

As previously reported by Multi-Housing News, the Jenks city council approved a zoning change from commercia l to residential use last November for the $21 million project on South Elm Street.

But as The Tulsa World
reports, the Federal Emergency Management Agency determined that the site is located in a flood plain. As a result, Tulsa-based Case had to wait for the previous owner to raise the site’s elevation an average of 3 to 5 feet. Company president Scott Case told the World that the Reserve at Elm had the longest lead time of any project undertaken by the firm to date.

When construction is complete in about 10 months, the apartment community will be the largest multi-family property in Jenks. It will comprise 130 one-bedroom units and 130 two-bedroom units varying in size from 789 to 1,176 square feet; monthly rents will range from $799 to $1,099. Amenities will include a clubhouse, fitness center, business center, gated access, a dog park, picnic areas, 60 garages and an outdoor swimming pool.

Elsewhere in the area, Case is weeks away from completing the Cascata Apartments, a $22 million, 286-unit project at 81st Street and Mingo Road. Case reported that the property is already 15 percent pre-leased.

Photo of Cascata Apartments courtesy of: www.cascataapartmentstulsa.com

GE Eyes Sites for $110M Research Center

By Gabriel Circiog, Associate Editor

General Electric will build a $110 million Global Research Center in the Oklahoma City area that will pursue innovation in the oil and gas sector and to bringing products to the market faster.

Announced April 3 at the capitol by GE chairman & CEO Jeff Immelt and Gov. Mary Fallin, the facility will be GE Research’s first-sector specific center. It will initially create 125 high-tech jobs for researchers, who will join GE’s global network of 50,000 scientists and engineers.

GE did not immediately reveal details about the facility’s location, design or development timetable. The company said that it is evaluating sites that can draw on educational institutions like the University of Oklahoma and on the metro region’s skilled workforce. Oklahoma City is also home to GE Oil & Gas’ Artificial Lift business, which has more than 550 employees.

“Advancements in technology are revolutionizing the way energy is produced, whether it be deeper subsea fields, hard to reach unconventional resource sources, or mature oil fields getting a second life,” said Daniel Heintzelman, president & CEO of GE Oil & Gas. “The creation of the new center, in close proximity to many of our customers, will allow us to accelerate the development of new technologies and enable GE to deliver even more advanced solutions to our customers faster.”

At the outset, the new center will focus on technologies that permit safe, efficient and reliable production, delivery and use of unconventional oil and gas resources. Unconventional resources like shale gas have the potential to create jobs, fuel innovation and lead to greater energy independence, the company said.

 “At GE, we see a tremendous opportunity in the oil and gas space, “said Immelt. “Since 2007, we have invested $11 billion to build broad technical capabilities that can deliver productivity gains and foster innovation for our customers.”

Photo Courtesy of: GE Power & Water via www.genewscenter.com

After 100 Years, Sunbeam Family Services Mounts $12M Campaign for New HQ on North Classen

By Gabriel Circiog, Associate Editor

When Sunbeam Family Services moved to its current location at 616 N.W. 21st Street in 1912, the building was on the northern outskirts of Oklahoma City. Much has changed in the century since then; the city has grown up around the building, which now sits tucked away in a residential neighborhood. And Sunbeam—which offers early childhood education, foster care, counseling and senior services free or a sliding-scale basis—has outgrown its longtime home.

To enhance its mission of serving central Oklahoma’s most vulnerable citizens, Sunbeam has launched a $12 million capital campaign to raise funds for a new 45,000-square-foot headquarters at 1411 North Classen Boulevard, The City Sentinel reports. Sunbeam has raised $8.4 million toward its goal.

Designed by Rees Associates Inc., the two-story building will provide a user-friendly space in a safe neighborhood for children adults and seniors. The facility will have improved access for the disabled and will be more accessible by bus for low-income clients. Sunbeam’s new headquarters will bring its programs and services together under one roof and trim its overhead. Tulsa-based Flintco L.L.C. will serve as the project’s general contractor.

Rendering: Sunbeam Family Services.

InterContinental Hotels, NewcrestImage Team Up for Bricktown Hotel

By Gabriel Circiog, Associate Editor

InterContinental Hotels Group announced late last month that the Bricktown entertainment district will be the site of its next development in Oklahoma City. The hotel company is partnering with NewcrestImage to develop a 124-key Holiday Inn Express at 101 East Main St. Construction is scheduled for completion by the end of the year, followed by a grand opening in early 2014.

The Holiday Inn Express Bricktown will be the seventh property developed by NewcrestImage under the InterContinental Hotels Group family of hotel brands. The company has a portfolio of six Holiday Inn Express properties, totaling more than 450 keys, in Arkansas and Texas. Another three hotels are in NewcrestImage’s development pipeline.

“This is a strong market and is well positioned for growth,” commented Daxesh Patel, managing partner with NewcrestImage, “We are looking forward to working with IHG on this new hotel.”

Located near the Bricktown Ballpark, Cox Convention Center and Chesapeake Energy Arena, home of the National Basketball Association’s Oklahoma City Thunder, the 70,500-square-foot hotel will be built by Brightman Construction, an affiliate of NewcrestImage.

“The Holiday Inn brand family is the fastest-growing chain globally in its segment; and we remain focused on strengthening that presence even further in the right markets through strong relationships with our owner community,” said Joel Eisemann, Chief Development Officer, The Americas, InterContinental Hotels Group.

Rendering Courtesy of: www.brightmanc.com

City Renews Hunt for M-F Developer to Top Off 10-Story Downtown Parking Structure

By Gabriel Circiog, Associate Editor

As construction of a Downtown Oklahoma City parking structure nears, the Oklahoma City Urban Renewal Authority is trying for the second time this year to recruit a developer to top off the 10-story structure with housing.

NewsOK.com reports that the Central Oklahoma Transportation and Parking Authority has signed off on a $20.6 million bid by Tulsa-based Flintco to build a 10-story garage with 20,000 square feet of ground-floor retail space, reports NewsOK.com. Flintco will build the 830-space structure west of the Hightower Building at 105 North Hudson Ave.

After its first invitation to developers in January got no takers, the city urban renewal agency is again looking for candidates to build up to 80 units of housing on the structure’s top three levels.

In other local real estate news, Tulsa World reports that Kanbar Properties may try to sell more of the 13 properties in its 2.1 million-square-foot portfolio, which accounts for about 30 percent of Downtown Tulsa’s inventory of office space. Bob Pielsticker of CB Richard Ellis/Oklahoma made the comments March 13 during a meeting of the Greater Tulsa Association of Realtors.

John and Stuart Price, the investors and developers who bought a stake in Kanbar Properties last fall, have “a clear plan” for the 13 buildings, Pielsticker told the audience, according to the World.

In February, the First Presbyterian Church paid $2.1 million for the Avanti Building at 810 South Cincinnati Ave. Pielsticker noted that three additional buildings have been put up for sale.

The owners may try to repurpose other properties, such as the Pythian Building at 423 South Boulder and the TransOK Building at 2 West 6th Street, as multi-family properties.

Rendering: www.theallianceokc.org

Von Maur Eyes 2014 Opening at Quail Springs Mall for First Oklahoma Store

By Gabriel Circiog, Associate Editor

In the latest indication of the Oklahoma City area’s retail revival, Von Maur Department Stores has picked the city as the site of its first location in the state. The upscale retail chain plans to open a 150,000-square-foot store at General Growth Properties Inc.’s Quail Springs Mall in the fall of 2014.

This summer Von Maur will begin renovating the store’s future site, a two-level building formerly occupied by Sears. Antiques, original artwork, piano music and the chain’s signature brick façade will characterize the new store.  Elsewhere in the nation, Von Maur plans new stores in New York and Alabama.

Von Maur’s announcement follows numerous other signs of the metro region’s retail rebound. Last year Dick’s Sporting Goods opened four stores, two in Oklahoma City and one each in Moore and Midwest City, according to a report on the store opening from the Greater Oklahoma City Chamber of Commerce. In the past few years established and new-to-market restaurants and retailers have arrived, including Genghis Grill, Smashburger and GolfSmith.

Also in 2012, Horizon Group Properties completed a 27,800-square-foot addition to Outlet Shoppes at Oklahoma City only 15 months after opening the center’s first phase. A second expansion is on the way, according to the Chamber of Commerce.  

Job growth and the increase in sales tax collections continue to boost the local economy. Collections in December increased 9.9 percent year over year. For 20 of the past 24 months, Oklahoma City’s unemployment rate has been the lowest in the country, the Chamber of Commerce reported.

Paycom Plans $11.8M Expansion of W. Memorial Rd. Headquarters

By Gabriel Circiog, Associate Editor

Paycom plans to break ground next month on an $11.8 million expansion of its Oklahoma City headquarters, the payroll and human capital management technology company said on Feb. 13. The addition would augment the 90,000-square-foot headquarters that Paycom opened at 7501 West Memorial Rd. in Aug. 2011, which is expected to reach capacity late next year.

City officials are weighing a proposal to provide $1.25 million in economic development incentives in connection with the expansion, newsok.com reported. Paycom estimates that the expanded headquarters will house nearly 700 workers.

The incentive package would follow a 2010 agreement under which the city approved $2 million worth of incentives and Paycom promised to create 492 new jobs. Since then, Paycom has created 186 jobs, the company said in a statement. The company will be eligible for the new incentives after it has fulfilled its prior job-creation commitment, Brent Bryant, manager of the city’s economic development program, told newsok.com.

“Paycom’s growth is further proof of Oklahoma City’s progression,” commented Oklahoma City Mayor Mick Cornett said. “These additional, well-paying jobs will have a major impact on our increasingly diverse economy. They are a great example of how a company can thrive in this market.”

Based on capital investment, state and local taxes as well as average first-year wages of close to $40,000, Paycom’s expansion will have an estimated economic impact of $143 million over the first five years. “Our growth is a testament to our focus on customer service and developing innovative solutions to streamline the HR process,” said Paycom CEO Chad Richison.”

Photo Courtesy of: www.paycomonline.com

St. Anthony Advances $83M Plan for MidTown Expansion, New Mustang Medical Campus

By Gabriel Circiog, Associate Editor

St. Anthony Hospital is moving ahead on plans to expand its MidTown home and create a new facility in Mustang at a total cost of $83 million, okc.BIZ reports.

According to Joe Hodges, the regional president of SSM Healthcare, St. Anthony’s owner, the $53 million expansion plan for the MidTown campus is the largest in the hospital’s history. Designed by the REES architectural firm, the expansion will comprise 125,000 square feet and will feature four patient-care floors, a rooftop heliport and an underground parking structure.

The first phase of the project calls for the addition of surface parking in order to free up space for the new structure bordered by N.W. Eighth and Ninth streets and Dewey and Walker Aves. Groundbreaking is scheduled for next month and completion is expected by fall 2014.

In Mustang, St. Anthony intends to partner with Miller Neff Development on 90,000-square-foot medical campus. Situated at the intersection of State Highway 152 and Sara Road, the new campus will cost an estimated $30 million. St. Anthony Healthplex Mustang will feature a full-service emergency room and will be similar to the facility St. Anthony opened in south Oklahoma City last year. Architectural and engineering services for the project will be provided by Jason Givens with Miller Architects Inc.

Rendering Courtesy of St. Anthony Hospital Facebook Page: www.facebook.com/saintsok

Legend, Maco Development Break Ground on Senior Projects

By Gabriel Circiog, Associate Editor

Legend Senior Living has broken ground on a $13 million senior living center in Tulsa Hills, its third such facility in the Tulsa metropolitan area. The 86-unit facility will specialize in assisted living and memory care, Tulsa World reports.

The 478,000 square feet facility will feature an 18-apartment section dubbed The Reflections Memory Care Residence, dedicated to residents with impaired memory, according to the World. Construction is expected to be complete in early 2014.

Amenities will include a theater, private dining room, kitchen, a massage and therapy room and an activity room. The company recently completed the construction of its second assisted living center in Tulsa, the Legend at Mingo Road.

In other senior living news, Tulsa World reports that Clarkton, Mo.-based Maco Development Co. has broken ground on Northwind Estates, a $5.5 million senior living complex in north Tulsa. Upon completion, the property will feature 60 apartment units for independently living lower-income seniors, according to Jason Maddox of Maco Development Co.

Northwind will consist of 10 six-unit clusters and an 11th building that will house an office, laundry facilities and a community area. The complex will include one- and two-bedroom units varying in size from 752 to 984 square feet. Units will rent for prices ranging from $460 to $550.

Logo Courtesy of Legend Senior Living

Haley Group Picks Up 223-Unit M-F Complex in $51M Portfolio Buy

By Gabriel Circiog, Associate Editor

In a $51.2 million deal, Haley Real Estate Group has acquired a portfolio of four multi-family properties that includes Park Place Apartments, a 223-unit complex in Oklahoma City. Also included in the sale were Oakbrook Apartments in Jackson, Miss., The Hamlins at Cedar Creek Lake near Dallas/Fort Worth and Nantucket Harbor in Shreveport, La.

Located at 215 NE 28th St., Park Place is adjacent to the State Capitol and is 10 blocks north of the University of Oklahoma Health Sciences Center. The four-story property features one-, two-, and three-bedroom units and is slated for a major renovation this year.

The purchase by Omaha, Neb.-based Haley expands its portfolio by around 1,000 units, bringing its holdings to 44 properties and more than 10,000 units. The company also plans to implement a $12.4 million capital improvement program for its new assets.

“Building our portfolio with strategic investments is a high priority in today’s current markets,” commented Doug Hastings, senior vice president of property management for DEI Communities, Haley’s property management affiliate. “We are committed to growing our brand while simultaneously providing residents with a comfortable living environment to call home. We believe the planned renovations to each property will not only deliver measurable ROI but will provide a greater sense of community to our residents and the thriving neighborhoods where our properties are located.”

Photo Courtesy of: www.parkplaceokc.com

Inland American Buys Rockwell Plaza in Oklahoma City

By Adrian Maties, Associate Editor

Inland American Real Estate Trust, Inc. has acquired its sixth retail property in Oklahoma City, the 254,690-square-foot Rockwell Plaza, the Chicago-based REIT announced Jan. 9. According to The Oklahoman, Rockwell Plaza fetched $31 million for an affiliate of Rockwell Acquisitions Inc. as part of a two-property transaction.

Located at the intersection of Northwest Expressway and Rockwell Avenue, Rockwell Plaza has more than 40 tenants, including Ross Dress for Less, Jo-Ann Fabrics and Crafts, PetSmart, K&G Men’s Warehouse, RadioShack, Rue21, GameStop, Dots and Dollar Tree. A nearby Target shadow-anchors the center.

“Rockwell Plaza in Oklahoma City offers many attractive features that played a key role in our interest in the property. First, the center’s location at the intersection of Northwest Expressway and Rockwell Avenue allows for exposure to more than 66,000 vehicles daily,” Jeff Manno, vice president of acquisitions for Inland American, told CPE. “In addition, approximately 161,000 residents live within a five-mile radius and over 500,000 consumers live within a 20-minute drive of the center, making the buying power in the region exceptional.”

Inland American purchased Rockwell Plaza as part of a $94.7 million deal that also included Stone Ridge Market, a 218,436-square-foot shopping center located in San Antonio. CPE’s Keith Loria has more on this story here.

“These properties are a terrific addition to our retail portfolio and match our long-term strategy of investing in multi-tenant, necessity-based retail properties,” Manno said. “Both assets are dominant retail properties in their areas, with diverse tenant mixes and strong demographics to position them for future growth.”

Elsewhere in the Oklahoma City market, Inland American owns 240 Penn Park, Memorial Square, University North Park, Silver Springs Pointe, and The Shops at Moore. CPE’s Barbra Murray reported on the acquisition of The Shops at Moore on Dec. 28. 

Heritage Trust Proposes $13.7M Makeover for Oklahoma City’s Journal Record Building

By Adrian Maties, Associate Editor

Downtown Oklahoma City’s Journal Record Building may get a $13.7 million makeover, The Oklahoman reports. The makeover is part of a proposal submitted on Jan. 7 by Bond Payne, co-chairman of Heritage Trust Co., to the Oklahoma City Cultural and Industrial Facilities Trust.

Heritage was the sole bidder responding to a request for proposals issued by the city trust, offering $1.74 million for the six-story property, which has been largely vacant for almost two decades. In April 1995, the Journal Record Building was significantly damaged in the bombing that destroyed the nearby Alfred P. Murrah Federal Building. Payne hopes the redevelopment can be completed by the 20th anniversary of the bombing in 2015.

Located at 621 N. Robinson Avenue, the Journal Record Building was constructed in 1923 and designed by the prominent local architectural firm of Layton, Hicks and Forsyth. During the past 90 years it has been variously known as the Law Journal Record Building and the India Temple Shrine Building. In March 1980, it was added to the National Register of Historic Places.

Following the 1995 bombing, the city acquired and repaired the Journal Record Building before turning it over to the Oklahoma City Cultural and Industrial Facilities Trust. Part of the building is now owned by the Oklahoma City National Memorial and one floor is being leased to the Memorial Institute for the Prevention of Terrorism. Both organizations have reportedly endorsed the project.

The space up for sale includes the ornate entrance facing Robinson Avenue. If Payne’s proposal is approved, the historic façade would be restored and the remaining available space would be converted into offices. Urban Realty Partners would develop the project, which would be designed by Smith Dalia Architects of Atlanta and Oklahoma City-based Butzer-Garder Architects. The renovation would add almost 55,000 square feet of Class A office space to the Central Business District, of which Heritage Trust itself would occupy 20,000 square feet.

Payne asked the city for tax increment financing, both for the renovation and for the construction of a garage and ground-floor retail on the former site of the YMCA building located just southeast of the Journal Record Building.

 Photo credit: Google Maps

Resource Real Estate Opportunity REIT Buys 216-Unit M-F Asset

By Gabriel Circiog, Associate Editor

The Resource Real Estate Opportunity REIT, sponsored by Resource Real Estate Inc., has acquired Park Forest Apartments, a 216-unit asset in southeastern Oklahoma City.

Built in 1974 on an 8.4-acre site at 4328 Southeast 46th Street, the community comprises 27 buildings containing more than 158,000 rentable square feet.

Featured amenities include a fitness center, playground, swimming pool and clubhouse and leasing office. Residents benefit from easy access to a nearby major shopping center, Midwest Regional Hospital, Oklahoma City Community College, Boeing and Rose State College, as well as the state’s largest employer, Tinker Air Force Base.

Park Forest Apartments, a distressed real estate-owned property, is characteristic of the assets targeted for acquisition by Resource Real Estate Opportunity REIT. The firm plans to upgrade the complex significantly in order to stabilize occupancy and create positive cash flow.

In other development news, the Stillwater NewsPress reports that Epworth Living could break ground on a $65 million continuing care retirement community in Stillwater early next fall. Epworth Living canceled plans to develop The Ranch on a 40-acre site in southwest Stillwater earlier this year due to preexisting water pressure problems. Since then, U.S. Rep. Wes Watkins and his wife, who have been planning to sell their home and 55 acres to move into The Ranch upon completion, have reached an agreement in principle to offer a donation/land transaction package that would enable Epworth Living to build The Ranch in northern Stillwater.

The southwest Stillwater designs have been modified by the design and engineering teams to fit the new property and Epworth Living is negotiating the rezoning, annexation and permitting process.

Photo Courtesy of: www.priceedwards.com

Wiggin Plans M-F Makeover for Downtown Tulsa’s Arco Building

By Gabriel Circiog, Associate Editor

Wiggin Properties is under contract to purchase Downtown Tulsa’s Arco Building and is planning to repurpose the 63-year-old property as a rental apartment complex, the Tulsa World reports.

Located at 119 East 6th Street, the six-story, 133,000-square-foot Arco Building is currently owned by Kanbar Properties. River City Development had previously planned to buy the asset and convert it to condominiums under the name 119 Downtown.

Oklahoma City-based Wiggin now plans to transform the property into a apartments with ground-floor retail space. Although Wiggin has not yet secured funding, Emily Rohleder, vice president of Wiggin’s Tulsa office, told the World the developer has selected a contractor and architect and expects construction to start by June.

Rohleder added that the Arco’s structure and historic nature attracted the developer to the property. The exact number of apartments is still undetermined. Wiggin is seeking prospective tenants for the ground-floor retail space.

Wiggin has previously transformed the former Mayo Building, located at Fifth and Main streets, into the Mayo 420 apartment complex, which also houses the Downtown Milwaukee YMCA. However, Rohleder said Mayo 420 will not serve as the model for the Arco’s makeover, as Wiggin wants the Arco to have its own character.

Photo Courtesy of: www.tulsaproperties.com

Jenks City Council Greenlights 260-Unit M-F Complex

By Gabriel Circiog, Associate Editor

The Jenks City Council recently paved the way for a proposed 260-unit multi-family project on South Elm Street by approving a zoning change from commercial to residential use, The Tulsa World reports.

The complex planned by Tulsa-based Case & Associates would be the city’s largest and would help ease its tight apartment market.

Situated in the 300 to 400 block of South Elm Street, the proposal has drawn considerable support from elected officials and senior staff. City council member Lonnie Sims termed the location ideal for an apartment complex. Robert Bell of the city’s planning department said the property will support the retail venues in the area. The complex would border a convenience store, a bank, a supermarket, the Jenks levee and Park West.

Scott Case of Case & Associates reported that pricing and unit configuration will be similar to the company’s Nickel Creek complex near the Tulsa Hills shopping center in southwest Tulsa.  The project will feature one- to two-bedroom flats with prices ranging from $750 to $1,200 a month.

In accordance with to city requirements, the development will be gated and fenced. The developer will build a public road over the Jenks levee, which will connect to Beaver Street and a new road to access Elm Street.

Case & Associates has been an active player in the Tulsa multi-family market of late. The company is developing the Cascata Apartments, a 286-unit apartment project located at 81st Street and Mingo Road. In a $31.8 million deal, Case recently sold the Villas at Bailey Ranch apartment complex to Chicago-based Trilogy Real Estate Group.

Logo Courtesy of: www.caseusa.com

Guthrie Green Enhances Brady Arts District With Open Space

By Gabriel Circiog, Associate Editor

Brady Arts District, the Tulsa neighborhood where residential projects, hotels, restaurants, cultural and entertainment venues are sprouting up, has a new addition: Guthrie Green, an $8 million park that opened last month on the former site of a truck-loading facility.

Named for iconic musician and Oklahoma native Woody Guthrie, the project created a 2.7-acre community gathering space that is bounded by Brady, Cameron, Boston and Cincinnati streets. The design by Sausalito, Calif.-based SWA Group incorporates interactive fountains, an outdoor stage, vine-covered “green rooms,” a multipurpose lawn and an 11,200-square-foot café pavilion.

“The project shows the power of parks to make downtowns more enjoyable and reverse urban decline, which is so important for regional cities like Tulsa,” commented Elizabeth Shreeve, an SWA principal.

Guthrie Green also incorporates extensive sustainable features. Flynt & Kallenberger and James Bose of Oklahoma State University devised a “geo-exchange” system  using technology provided by Rygan Corp. A grid of 120 geothermal wells extending 500 feet deep provides heating and cooling to the park’s café pavilion and restrooms, as well as to 120,000 square feet of nearby space used by non-profit organizations.  Photovoltaic panels on the pavilion roof supply power for the building’s heat pump system. The project received a $2.5 million grant through the American Recovery and Reinvestment Act of 2009, as well as other state and local funding. Other sustainable features include low-power LED lighting and two bio-retention swales that collect and filter storm water and re-charge the local aquifers.

Guthrie Green is part of the George Kaiser Family Foundation’s $113.5 million public-private investment in the district, which has been enlivened with galleries, museums and nightlife. The historic Tulsa Paper Company building has been transformed into the Woody Guthrie Center, which houses the Woody Guthrie Archives and a variety of nonprofit arts organizations.

Kinslow, Keith & Todd Architects designed Guthrie Green’s structures and Wallace Engineering provided structural and civil engineering. Manhattan Construction Co. oversaw construction in conjunction with Stonebridge Group and Tulsa Industrial Authority.

Image Courtesy of: www.swagroup.com

Osler Building Heads for Makeover as an Ambassador Hotel

By Gabriel Circiog, Associate Editor

The historic Osler Building will reopen next year as a boutique hotel under the Ambassador flag, NewsOK.com reports. Ambassador Hotels is on track to close on the acquisition of the seven-story property next month and start renovations soon afterward. Located at 1200 N. Walker, the Osler Building has been empty since MidTown Renaissance Group acquired the property in 2006.

MidTown Renaissance  originally planned to convert the Osler Building into a multi-family property, but the Osler’s tight, U-shaped floor plans and column spacing pose challenges for multi-family conversion, explained Chris Fleming, a MidTown Renaissance partner.

When it opens late next year, the hotel will offer 54 guest rooms, a ground-floor restaurant, a rooftop bar and a courtyard and pool on the east side of the property. New stairway and elevator towers will permit a better use of the building’s floor plates. Coury’s plan eliminates the multiple kitchens requuired for an apartment complex, and generally offers a better fit for both the building and the community, Fleming added.

Coury opened the first Ambassador Hotel in Tulsa in 1999, and in 2006 acquired the Colcord, a Tulsa office building, which he converted into a boutique hotel. The Colcord Hotel was sold to Devon Energy Center in 2008 and since then, Coury has branded each new property as an Ambassador.

The second Ambassador Hotel opened in Kansas City’s Power and Light District following an $11 million renovation of the 96-year-old Grand Bank Building. A 117-room Ambassador  in Wichita is scheduled to open next month. Signature features of the properties include restaurants operated in house rather than by outside vendors.

Photo Courtesy of: www.ocgi.okstate.edu

Rosemont Realty Buys 1 MSF of Office Space at Warren Place

By Gabriel Circiog, Associate Editor

Rosemont Realty L.L.C. has acquired two office towers in Tulsa, adding more than 1 million square feet of Class A office space to its portfolio.

Located at 6100 South Yale, One Warren Place and Two Warren Place are part of the 52-acre Warren Place complex and were acquired from Miami-based Parmenter Realty Partners for an undisclosed amount. The two office buildings are currently 96 percent leased.

“Rosemont is strategically entering the Tulsa market with the acquisition of One Warren and Two Warren,” commented Daniel Burrell, CEO of Santa Fe, N.M.-based Rosemont Realty. “Tulsa’s fast-growing energy and natural gas sectors, along with its increasingly diverse local economy, makes this a compelling investment opportunity for the company.”

Completed in 1987, the 487,085-square-foot Two Warren Place is the largest suburban office building in Oklahoma. At 20 stories and  466,424 square feet, Warren Place, built in 1983, is the state’s second-largestsuburban office building.

Photo Courtesy of: www.warrenplace.net

Trilogy Acquires 408-unit M-F Complex in Owasso for $32M

By Gabriel Circiog, Associate Editor

Chicago-based Trilogy Real Estate Group has purchased the Villas at Bailey Ranch, a 408-unit apartment complex in Owasso, for $31.8 million.

Located at 8751 N. 97th East Avenue, the asset was acquired from Tulsa-based Case & Associates. The deal was the third Class A apartment transaction of $25 million-plus in the Tulsa area this year.  Andy Burnett, David Burnett and Justin Wilson of Sperry Van Ness/William T. Strange & Associates arranged the transaction. Riverstone Residential Group will manage the property.

The property traded for $77,941 per unit at a 6.4% cap rate. David Burnett commented: “The sub-7% cap rate represented a strong price for the seller while the lower-than-average sale price per unit was enticing to the buyer. Both parties came out ahead in this transaction and the population growth in Owasso should lead to strong rental growth in the years ahead.”

Villas at Bailey Ranch complex consists of 180 one-bedroom apartments and 228 two-bedroom units and was built in three phases from 1998 to 2004. Residents have access to such upscale amenities as a swimming pool, a Jacuzzi, a fitness center and a picnic area with barbecue grills.

The property features 346,402 of leasable square feet and was approximately 95% occupied at time of closing. “There are only a handful of newer properties in Owasso and the arterial access and proximity to the golf course make Villas at Bailey Ranch well-positioned to continue 95% + occupancy,” said Andy Burnett.

Villas at Bailey Ranch is Trilogy’s second major multi-family purchase in the state of Oklahoma. The investor group also owns Villas at Countryside in Moore as well as apartment complexes in Colorado, Arizona and Minnesota.

Photo Courtesy of: www.villasatbaileyranch.com

$36M M-F Project Under Way on Old Mercy Hospital Site

By Gabriel Circiog, Associate Editor

Developer Gary Brooks has broken ground on a $36 million upscale multi-family project on the former Midtown site of Mercy Hospital, newsOK.com reports. Scheduled for completion in 2014, The Edge at Midtown will feature 250 apartments.

If it comes to fruition as expected, the project will complete a process that has endured several false starts since 1988. That year, the city acquired and cleared the site at NW 13^th St. and Walker Avenue. Originally Nicholas Preftakes proposed an apartment complex on the site, but it failed when the Oklahoma City Urban Renewal Authority turned down his request to purchase the duplexes across the street. That property was deemed blighted at the time but has since then been redeveloped into offices. In 2008, the agency tapped Chuck Wiggin to build a $62 million, 109-unit complex on the site, but the credit crunch scuttled that project.

Brooks was selected in Aug. 2011 after the proposal was reviewed by the architectural firm RTKL and approved by the Downtown Design Review Committee. The Edge project was designed by Bedford, Texas-based GTF Design, and the general contractor is Lewisville, Texas-based N.E. Construction. Crain Mortgage and the U.S. Department of Housing and Urban Development provided financing.

In other local news, okc.BIZ reports that entrepreneur and developer Chris Johnson plans to renovate a vacant 6,968-square-foot warehouse at 229 E. Sheridan, which he acquired in April for $500,000.  Johnson, CEO of USA Screen Printing and Embroidery Co., plans to renovate the 60-year-old  property. He is betting on the property’s close proximity to the planned Hilton Garden Inn and Homewood Suites to help attract a national tenant.