Case Breaks Ground on $22M Southeast Tulsa M-F Complex

By Gabriel Circiog, Associate Editor

Case & Associates Properties Inc. recently broke ground on a 286-unit apartment project at 81st Streetand Mingo Road, in Tulsa, Tulsa World reports.

Dubbed Cascata Apartments, the $22 million project is scheduled for completion next year. Case’s new project marks something of a departure from its recent strategy of developing on the edges of the metropolitan area in locations with relatively inexpensive land prices, such as Broken Arrow, Owasso and near Tulsa HIlls shopping center. Company vice president Scott Case explained that higher rents and occupancy in southeast Tulsa will offset the increased development costs.

Strong leasing activity at its newly developed suburban properties is also prompting Case to keep building. Occupancy at the 316-unit Tuscany Hills complex near Tulsa Hills and at the 228-unit Park at Coffee Creek in Owasso quickly reached around 93 percent.

The Cascata Apartments will feature units ranging in size from 789 to 1,176 square feet that will rent for about $1 per square foot. With a design incorporating Tuscan and Mediterranean elements, Cascata will include 28 apartments placed over garages.

Logo Courtesy of: www.caseusa.com

One Place Tower Tops Out as Spring Completion Approaches

By Gabriel Circiog, Associate Editor

Mayor Dewey Bartlett, project officials and city business leaders gathered on Oct. 4 to mark the topping out of One Place Tower, the 18-story Class A Downtown office building,  Tulsa World reports.

Located across the street from BOK Events Cener, the $120 million project will encompass 300,000 square feet of Class A office space, 25,000 square feet of retail space and a four-story parking structure upon completion next spring. Tom Maxwell, CEO of project contractor Flintco Cos., noted that the topping out coincided with the 10th annniversary of the property’s anchor tenant, Denver-based Cimarex Energy Co.

 Designed by Miles Associates, One Place Tower is the centerpiece of a planned mixed-use complex that will occupy an entire square block. Last month, Northwestern Mutual began moving in to an adjacent five-story companion building.

One Place L.L.C., the project’s developer, is working to secure financing for future phases, which may include a 120-key hotel and about 45 lofts and flats, a spokesperson for the company reported. In May, the Tulsa Development Authority gave the developers a two-year extension to Dec. 31, 2016 to finish the project.

Rendering Courtesy of: www.milesassociates.com

OU Strikes Deal to Buy 700 KSF Research Park from Foundation

By Gabriel Circiog, Associate Editor

The University of Oklahoma is under contract to buy the Presbyterian Health Foundation’s 700,000-square-foot research park in Oklahoma City, NewsOK.com reports. Terms have not been disclosed, but the deal is likely to close in six to eight months, said Carl Edwards, chairman of the foundation’s board.

“This sale will advance the groundwork established by the Presbyterian Health Foundation to further medical research in Oklahoma to save and enhance human life,”  Edwards remarked.

Situated just west of the University of Oklahoma’s Health Sciences Center, the research park  “will continue to be one of Oklahoma’s major engines for economic growth and resource for learning, discovery and innovation in today’s knowledge-based, technologically driven, global society, commented David Boren, the university’s president.

 Located at 655 Research Parkway, west of Lincoln Boulevard, the research park features biomedical research lab and office space, supported by state-of-the-art communications and infrastructure. Occupancy is nearly 90 percent, Edwards reported. The research park’s 36 tenants represent  the life sciences, institutional, educational and government sectors.

Edwards explained that the sale will allow Presbyterian Health Foundation to resume its practice of awarding grants. PHF has provided about $100 million to health-related organizations. However, costs associated with the research park, combined with fallout from the recession, have forced the foundation to put its grant program on ice for the past several years.

 “This transaction furthers the shared goal of OU and the Presbyterian Health Foundation to grow biomedical research in our state to benefit health care in Oklahoma and nationwide,” observed Dewayne Andrews, the Oklahoma University Health Sciences Center’s senior vice president and provost.

 Photo Courtesy of: www.phfresearchpark.com

Crowne Plaza Brand Returns to Tulsa

By Gabriel Circiog, Associate Editor

The Crowne Plaza brand has returned to Tulsa with the conversion of a Hilton into the Crowne Plaza Tulsa – Southern Hills, Tulsa World reports.

Located at 7902 S. Lewis Ave., across from Oral Roberts University, the 11-story hotel is already operating under the new name. The Crowne Plaza Tulsa – Southern Hills is independently owned by McSam Hotels and operated by Packard Management Group, under a license agreement with a company in the InterContinental Hotels Group.

The 286-room hotel is situated close to U.S. Highway 75 and Interstate Highway 44, as well as to various businesses, including CitiPlex Towers, Oral Roberts University and Northern Santa Fe Railway. “We’re pleased to bring the Crowne Plaza brand to the Tulsa area, especially in such a convenient location for business travelers,” said Gina LaBarre, vice president of Americas brand management for IHG, in a press release. “There are several major employers in the area that will benefit from the meetings-savvy products and services that only a Crowne Plaza can provide.”

Felicia McGee, general manager, said: “A significant investment is being made to make the hotel ready for business and leisure travelers who expect an upscale Crowne Plaza experience. The hotel is great for business and leisure travelers, with upgraded guestrooms and amenities that provide a comfortable, relaxing stay.”

The hotel features a total of 286 guestrooms, including one presidential suite and six junior suites. Hotel amenities include complimentary wireless Internet access in guest rooms, a fitness center, a business center and an all-seasons indoor pool.

The Crowne Plaza brand had previously been licensed locally to a downtown hotel operated by Ascension Hotels of Donaldson, La., which entered into foreclosure and was acquired by Argonaut Private Equity, an investment arm of the George Kaiser Foundation, in 2010 for $11 million. The downtown hotel was converted to the Hyatt brand as part of the purchase.

Photo Courtesy of: www.ichotelsgroup.com

Clear Edge Filtration Headed to New HQ; Hilton Tower Rises

By Gabriel Circiog, Associate Editor

Clear Edge Filtration Inc. will move to a new 175,000-square-foot headquarters at the Greenhill Distribution Center industrial park in early 2013. The new facility will accommodate the industrial process filtration system company’s plans to increase its Tulsa-area workforce to 180 people.  

Tulsa Mayor Dewey F. Bartlett Jr. commented,  “The manufacturing sector continues to be a major driver in Tulsa’s economy, and we are excited that Clear Edge Filtration is constructing its new global headquarters and creating more jobs for our region.” 

 Located near U.S. 169 and 46th Street North, Greenhill Distribution Center is a 292-acre master-planned industrial park being developed by Trammell Crow Co. an independent affiliate of CBRE Group Inc. Tulsa International Airport is one mile east of the property, and the Port of Catoosa is four miles to the west. Clear Edge Filtration will join such tenants as Walvoil Fluid Power Corp. and American Tire Distributors.

In Okahoma City, Raymond Managment Co. has kicked off construction of a 155-key Hilton Garden Inn and a 100-key Homewood Suites by Hilton. The two properties will share a single tower in the Bricktown entertainment hub and will be near Bricktown Ballpark, Cox Convention Center and Chesapeake Energy Arena, home of pro basketball’s Oklahoma Thunder.

Each hotel will feature a distinct lobby, registration area and guest room décor. Shared spaces will include a pool, 6,000 square feet of meeting space, an exercise room, laundry facilities and administrative offices.

Renderings Courtesy of: www.cbre.us and www.hgibricktown.com

Belgian Firm to Land 715 KSF Aerospace Plant in Stillwater

By Gabriel Circiog, Associate Editor

Oklahoma continues to attract aviation industry giants as Belgium-based Asco Industries is set to bring 600 jobs to Stillwater over the next three years, the Tulsa Business Journal reports.

 Asco will move into the 715,000-square-foot MerCruiser building, previously occupied by Mercury Marine. Located on a 79.5 acre-site at 3003 N. Perkins Road, the property was bought from the Stillwater Industrial Foundation, which is operated by the Chamber of Commerce, according to property transaction records.  Asco plans to invest $100 million in two phases, including the purchase of the plant. The announcement was made during the Farnborough International Air Show in the United Kingdom.

Asco chose Stillwater site due to its convenient location and highly trained workforce. Oklahoma State University’s reputation as a center for aerospace research and training played a crucial role in Asco’s decision. Recently the university launched the first program in the United States for graduate study of unmanned aircraft.  Asco also cited the Meridian Technology Center as an important asset. Asco will start the hiring process in September and aims to reach full production by spring 2014.

The news couldn’t come at a better time for Stillwater, which recently lost around 440 manufacturing jobs. In December, boating engine manufacturer Mercury Marine closed down and relocated 200 jobs to Wisconsin. Quad/Graphics Inc. shuttered its facility on West Airport Rd. facility, a move that cost 240 jobs, but that loss was partly offset when Total Energy added 200 positions.

Oklahoma is continuing to reap the benefits of the arrival of Boeing, which in June opened a facility in Oklahoma City that will add at least 1,000 jobs to its current 1,000 workers in the state. The aerospace giant named Stillwater-based Frontier Electronics Systems as its 2011 Avionics Supplier of the Year, and Lufthansa Technik Component Services plans to add up to 90 employees at Tulsa International Airport.

Currently around 143,000 people employed by some 600 companies work in Oklahoma’s aviation industry, according to the state aeronautics commission. Aviation is the state’s largest export, generating an estimated $12.5 billion annually.

Stonetown Investors Buys 4 Mobile Home Parks; Makeover in Store for Penn Square Mall

By Gabriel Circiog, Associate Editor

Stonetown Investors L.L.C. has acquired four mobile home parks in the Oklahoma City area, NewsOK.com reports. The Denver-based company paid $6.8 million for 489 lots and 104 park-owned homes. 

The portfolio includes:

• El Reno Estates, located at 1501 S. Rock Island, El Reno; 133 lots, 95 percent occupied;
• Skyview Estates, 1644 E. State Highway 66, El Reno, 88 lots, 95 percent occupied;
• Sunnylane Estates, 17200 S. Sunnylane, Norman; 105 lots, 70 percent occupied;
• Lakeview Terrace, 1200 N Lakeview, Oklahoma City; 163 lots, fully occupied.

Keith Wilson, the Edmond-based broker who arranged the transaction, told NewsOK.com that Stonetown is building up a national portfolio of mobile home parks and was attracted to the Oklahoma City region by dynamic economic trends and relatively low prices. Stonetown believes that Oklahoma City offers the best opportunity for value appreciation in the U.S., Wilson added.

,In other news, OKCbiz reported that Simon Propety Group Inc. is planning an upgrade of Penn Square Mall. Originally an open-air center, the 52-year-old property was later enclosed and underwent its biggest makeover in the late 1980s. The next renovation, which is scheduled for completion next spring, will include a redesign of the entrances, cosmetic upgrades and an expansion of the food court.

Photo Courtesy of: www.simon.com

Formal Unveiling of 1.8 MSF Devon Tower Set for Oct. 23

By Gabriel Circiog, Associate Editor

The formal debut of Downtown Oklahoma City’s newest trophy property, the 50-story Devon Tower, is less than two months away. A dedication ceremony is scheduled for Oct. 23, NewsOn6.com reported.

Located at 333 W. Sheridan Ave., the 1.8 million-square-foot office building serves as the headquarters for Devon Energy Corp. Designed by Pickard Chilton, the complex features a six-story glass rotunda with a skylit roof and balconies. A pedestrian promenade will serve as a public gathering space and offer access to retail and restaurants. The development also features a landscaped public park and plaza.

Sustainable features include raised floors and low-emissivity glass windows spanning 10 feet from floor to ceiling.  The project aims to achieve LEED Gold certification. A five-level, 1,000-car parking garage has been expanded to 2,898 spaces.

Even before its completion, Devon Tower has already made its presence felt. According to a recent report by Price Edwards & Co., the Downtown Oklahoma City office market has absorbed 240,000 square feet in the past 12 months, NewsOK.com reports. That’s the highest rate since Price Edwards started tracking the market in 1986.

Ford Price, managing partner of Price Edwards, explained that the Devon Tower has generated a new dynamic in the downtown office market as the tower absorbs a large volume of new space and other office properties are backfilled. One example is Continental Resources’ absorption of 307,000 square feet vacated by Devon at 20 N. Broadway.

Devon started moving employees into the lower levels of Devon Tower in March. According to a company spokesman, most of the remaining work is on the top five floors, including the new Vast restaurant, which will be located on floors 49 and 50.

Rendering Courtesy of: www.hines.com

Innovative $36 Million Renewal Project Breaks Ground

By Gabriel Circiog, Associate Editor

Launching an innovative urban revitalization initiative, a coalition of public and private stakeholders has broken ground on Kendall-Whittier West Park project, a $36 million mixed-income residential development in Tulsa.

Joining forces for the event were representatives of the George Kaiser Family Foundation, the University of Tulsa, the city of Tulsa and developer McCormack Baron Salazar (pictured at right).

Spread over 7.5 acres between South Lewis and Atlanta Avenues near 4th Street, the urban development aims to revitalize Tulsa’s historic Kendall-Whittier neighborhood. The project will feature one of the city’s first mixed-income housing developments: about 128 mixed-income residential units and 20 units for University of Tulsa graduate students. Construction of the residential component is scheduled for completion in fall 2013. The Kendall-Whittier West Park project will also include 7,000 square feet of retail and management space, as well as renovations to the Kendall-Whittier neighborhood park.

University of Tulsa president Geoffrey Orsak affirmed his institution’s commitment to revitalizing the neighborhood, commenting, “Together as neighbors, we are stepping up to create better housing opportunities and an even stronger community. This is one of the truly remarkable urban development programs that I’ve seen anywhere in this country.”

The Kaiser Foundation chose the Kendall-Whittier neighborhood as the pilot site for the revitalization initiative and is partnering with McCormack Baron Salazar, a national developer specializing in transforming  hard-hit urban areas into dynamic mixed-income communities.

With Community Action Project of Tulsa County serving as the lead planning agency, the Kaiser Foundation is also participating in the U.S. Department of Education’s Promise Neighborhood Program and aims to emulate the success of the Harlem Children’s Zone, the acclaimed educational initiative in Manhattan. In May 2011, The Oklahoma Housing Finance Agency approved $750,000 in affordable housing tax credits for the Kendall-Whittier West Park project.

Image Courtesy of: www.utulsa.edu

Bomsada Eyes Groundbreaking for Stalled $33M M-F Complex

By Gabriel Circiog, Associate Editor

 Construction of a $33 million upscale apartment complex stalled by the recession is ready to move forward after years of delay, Tulsa World reports.

 In the next 30 to 45 days, Houston-based Bomsada Group is set to break ground on Enclave at Brookside at 1414 E. 39th Street, Bomsada vice president John Gilbert Sr. told the Tulsa World.

Soon after the developer laid out plans for the 240-unit complex in 2008, financing evaporated and banks were unwilling to back the project. Before putting the project on ice, Bomsada demolished two apartment complexes on the site and carried out infrastructure work. Bomasada has now secured financing through F&M Bank & Trust Co. in Tulsa and Amegy Bank of Houston.

Although four years have passed, the current plans are nearly identical to the original proposal. Enclave at Brookside will consist of a three-story building, a four-story building and a parking structure. Units will range in size from 724 square feet to 1,500 square feet, with rents ranging from $900 to $2,000 per month. Amenities will include a clubhouse with a fitness center and a resort-style swimming pool.

Logo Courtesy of: www.bomasada.com

Fresh Start in Store for Fading Warr Acres Retail Center

By Gabriel Circiog, Associate Editor

A developer is planning to give the nearly vacant West Park Mall in Warr Acres a new lease on life, NewsOK.com reports.

Located at the corner of NW 63 and MacArthur Boulevard, the 124,955-square-foot property was acquired for $2 million by Warr Acres Holdings L.L.C., an investment entity controlled by Jim Tapp. He bought the property from Saul Centers, a REIT affiliated with Bethesda, Md.-based B.F. Saul Co.  Mark Inman, a senior vice president and retail specialist with CBRE Group Inc., represented the seller.

Tapp plans to work with the mall’s two tenants and wants to relocate one of them—a Family Dollar Store—within the center. He also hopes to attract a neighborhood grocery store. City officials welcomed the news. Mathew Love, the Warr Acres city attorney, commented that any improvement to the property—whether renovation or a ground-up rebuilding—would be beneficial, whatever the tenant mix may be. However, the potential for increased sales tax revenue would be the biggest plus for the municipality.

Redeveloping West Park Mall would have a positive impact on the northwest Oklahoma City submarket, predicted Jim Parrack, senior vice president of Price Edwards & Co. and a retail specialist. According to a recent Price Edwards report, retail vacancy in the submarket has climbed from 16 percent to 18.4 percent since the first of the year.

In the Oklahoma City metropolitan area, retail vacancy increased by 20 basis points to 9.1 percent in the first quarter, but that still represents a 60 basis-point decline from 9.7 percent in the second quarter of 2011, according to Marcus & Millichap Real Estate Investment Services Inc.

Chart courtesy of:  Marcus & Millichap Real Estate Investment Services Inc.

Mixed-Use Affordable Housing Project Starts in Greenwood

By Gabriel Circiog, Associate Editor

More than 80 years after the last new development in Tulsa’s historic Greenwood district, construction is under way on a $9.5 million mixed-use affordable housing project called GreenArch.

Tulsa World reports GreenArch LLC, a development team that includes Greenwood Community Development Corp. and the Hille Foundation, expects to complete the project within the next year. In addition to 70 affordable residential units, the property will offer nearly 9,500 square feet of retail space.

Located across the street from ONEOK Field, on the southwest corner of Archer Street and Greenwood Avenue, the new development will feature studios, one-bedroom and two-bedroom apartments, which will range in size from 700 to 1,300 square feet. Six of the 18 two-bedroom units will be live/work units for artists and craftsmen, while another six will be two-level. Rents are estimated at about $1 per square foot.

GreenArch representatives are in discussions to lease the retail space to a regional restaurant group, said Reuben Gant, executive director of the Greenwood Chamber of Commerce.

Kajeer Yar, counsel for the Hille Foundation, said the GreenArch development stands apart from other Downtown projects because it will use no grants, tax incentives or other public funds. Bank financing will cover about 86 percent of development costs; the HIlle Foundation, a private, locally based development organization, will supply the balance.

Rendering Courtesy of: GreenArch,LLC Facebook Page.