A publication by The Journal Record

May 2017

THE NEXT GENERATION Evolving mall space is not demise of retail

ASK THE INDUSTRY Biggest challenges in today’s architecture

Sponsored by YOUR LIFE’S WORK DESERVES MORE THAN A DEADBOLT.

Get Cox Business Security Solutions which offers Surveillance and Detection. View crystal-clear video in high definition, day or night, with our lineup of HD commercial cameras. Receive text and email alerts if an alarm is activated. On call 24/7, it goes the extra mile to SURVEILLANCE protect your business. AND DETECTION

Security that means business. GET YOUR FIRST MONTH FREE* Call (877) 404-2523 Visit coxbusiness.com/securitysolutions

*Offer ends 8/31/2017. First month free applies to the first month’s monthly service fees for Cox Business Security Solutions surveillance and/or detection packages. Equipment, installation, taxes and other fees not included. Cox Business Security Solutions is available to businesses in Cox Business serviceable areas. Service is not available in all areas. Service agreement required. Other restrictions apply. Service provided by Cox Advanced Services Arkansas, LLC–License No. E 2014 0026, Cox Advanced Services Arizona, LLA–ALARM License No. 18141-0; ROC License No. 310876, Cox Advanced Services California, LLC–Alarm License #7196 & Contractor’s License #992992, Cox Advanced Services Connecticut, LLC–License n/a, Cox Advanced Services Florida, LLC–License No. EF20001232, Cox Advanced Services Georgia, LLC–License: Bryan David Melancon #LVU406595, Cox Advanced Services Iowa, LLC–CRN #C121646 & Iowa AC#268, Cox Advanced Services Kansas, LLC–Topeka License No. 109 & Wichita License No. 2015-36492, Cox Advanced Services Louisiana, LLC–License F 2006, Cox Advanced Services Nebraska, LLC #26512, Cox Advanced Services Nevada, LLC–License #78331, Cox Advanced Services Ohio, LLC–License #53-18,1671, Cox Advanced Services Oklahoma, LLC–License No. 2002, Cox Advanced Services Rhode Island, LLC–License #9314, Cox Advanced Services Virginia, LLC–License #11-7776. © 2017 Cox Communications, LLC. All rights reserved. FINANCING MATTERS.

The right investment demands the right lender. Banks that don’t share your vision for expansion or the capital to make it happen lack the courage and confidence you deserve. We want to be your lender. We want to be your bank.

okfidelitybank.com I 405.755.5330

17OFB11225 Financing Matters_8.625x11.25.indd 1 4/27/17 8:37 AM TABLE OF CONTENTS MAY 2017

4 8 10 12

A publication by The Journal Record

May 2017

THE NEXT GENERATION Evolving mall space FEATURES is not demise of retail

ASK THE INDUSTRY THE NEXT GENERATION: Biggest challenges in 4 today’s architecture Evolving mall space is not demise of retail

8 EVICTIONS: Sponsored by Do’s and don’ts of tenant removals ABOUT THE COVER: CK & Co., Nichols Hills 10 Brokers offer tips on negotiating real estate transactions Plaza. Photo by Brent Fuchs. 12 Brokers optimistic for multifamily, office sectors OTHER 14 Top projects SQUARE FEET is a 16 Ask the industry publication of The Journal Record 17 Big deals: produced quarterly 17 Industrial 19 Office Office: 18 Multifamily 20 Retail & other 101 N. Robinson Ave., Ste. 101, 21 Sales Points Oklahoma City, OK 73126 405.235.3100 22 Properties for sale or lease For subscription information, call (800) 451-9998 or go to JournalRecord.com.

2 May 2017 Digital Marketing.Digital Marketing. Nobody Delivers LikeNobody We Delivers LikeDo. We Do.

Propel Marketing is a one-stop shop for all yourPropel onlineMarketing is a one-stop marketing shop for all your online marketing services, connecting local businesses with theservices, people connecting wholocal businesses matter with the people most. who matter most. We help our customers improve their bottomWe line help our by customers providing improve their bottom cutting- line by providing cutting- edge digital solutions and industry best practices.edge digital solutions and industry best practices. With a full array of online marketing solutions,With we a full arraycan of online create marketing solutions, the we can create the perfect mix suited to boost your business. Someperfect ofmix suited our to boost services your business. Some include: of our services include: • Responsive and Website Design • Social Media• Responsive and Advertising Website Design • Social Media Advertising • Search Engine Marketing • Direct Email• Search Engine Solutions Marketing • Direct Email Solutions • Search Engine Optimization • Live Chat• Search Leads Engine Optimization • Live Chat Leads • Digital Display • Digital Display CALL TODAY! 405-278-2830CALL TODAY! 405-278-2830

WEBSITES. VIDEO. SOCIAL. EMAIL. SEARCH. TARGETEDWEBSITES. VIDEO. SOCIAL. DISPLAY. EMAIL. SEARCH. TARGETED REPUTATION. DISPLAY. REPUTATION.

Powered by Powered by www.propelmarketing.com www.propelmarketing.com Trader Joe’s opened in Nichols Hill Plaza in 2016. Photo by Brent Fuchs THE NEXT GENERATION EVOLVING MALL SPACE IS NOT DEMISE OF RETAIL

By Molly M. Fleming

4 May 2017 Enid’s Oakwood Mall sold in December for less than the asking price. Courtesy photo

KLAHOMA CITY – Laci Jackson Ravina has been “The retail industry has always busy finding tenants for Nichols Hills Plaza, The Triangle at Classen Curve, and Curve been cyclical. It’s always been Oshopping center. stories of evolution. It’s not if a She said the tenants she’s seeking want their customers to drive to their front door and walk directly into the store. They retailer is going to die, but when.” don’t want their customers to have to trek through a department — Melina Cordero, CBRE’s head of store to find them, like they would do at a mall. retail research for the Americas “(These centers) are smaller, experienced-based shopping,” she said. “It’s a more customer-based experience.” The Nichols Hills center secured Trader Joe’s in 2016, with the grocery opening in the fall. Winter House Interiors and Carwin’s Shave Shop are moving to the center, leaving Classen Curve. a Cowen and Co. research study. Malls are only 1 percent of 1,200 Locally owned En Croute is open, with The Hutch on Avondale U.S. shopping centers and 15 percent of leasable space. doing updates on its patio. “Furthermore, although the rate of retail closures has “There are people shopping in Nichols Hills Plaza that have accelerated over the last several years, the number of malls has never been there before,” she said. “We’re definitely trying to overall been stable since the recession,” the investment firm said appeal to all customers. It’s been great having the grocery store in its study. “While we will likely begin to see mall closures over there. It brings in daily foot traffic. We only have a couple spaces the next decade, we believe a majority of shopping will continue left (in the Plaza) with deals working.” to take place in stores.” The growth in the three centers tells of a different situation Cordero said she disputes the idea that too much retail space than popular dialogue, with national retailers making daily was built in the 1980s. She said she has a different idea about announcements about store closures. The change seems to be felt what’s happening with malls. deepest at malls, where J.C. Penney Co. and Macy’s are leaving “We’re over regionally malled,” she said. “We’ll see the lowest large box spaces. tiers, like B and C-class malls, close up.” “The retail industry has always been cyclical,” said Melina Oklahoma City had four malls, while Norman’s Sooner Cordero, CBRE’s head of retail research for the Americas. “It’s Fashion Mall and Midwest City’s Heritage Park Mall brought the always been stories of evolution. It’s not if a retailer is going to metro total to six sites. die, but when.” See RETAIL, page 6 But evolving malls aren’t the death of retail, as pointed out in

SQUARE FEET 5 RETAIL, continued from page 5

The 1960s I.M. Pei plan for a new included a $100 million regional shopping galleria. However, the Pei plan was scratched by the 1980s, after 40 percent of downtown’s buildings were demolished. Price Edwards & Co. retail broker Jim Parrack said he didn’t know if the mall could have ever attracted the tenants to make the site work in the first place. In Muskogee, the mall near the historic downtown was studied by the University of Oklahoma’s Institute for Quality Communities and the Tulsa-based Urban Design Studio. The entities looked at how to use the mall building and parking lot, and connect the area to the downtown. The city was scheduled to hear the final recommendations this month. In Enid, the Oakwood Mall was sold in December 2016, with the new buyers paying less than the asking price. Enid Regional Development Authority Executive Director Brent Kisling said the city is hopeful AMC Theatres will update the cinema since the property has new ownership. The city has seen retail development across Owen K. Garriott Road, with companies building shopping centers that attract Academy Sports + Outdoors, T.J. Maxx, and Old Navy. “We need to make sure the next generation of businesses move into the mall,” he said. As malls nationwide look at their next generation of tenants, Provision Kitchen opened in Nichols Hill Plaza in late 2015.

Sooner Fashion Mall, Norman.

6 May 2017 Commercial Real Estate Loans Long Term Fixed Rates American Heritage Bank is uniquely positioned to oer 5 to 15 year terms and is looking for nancing opportunities in the For all of your Real Estate needs, Tulsa area. contact Steven Burrus, Executive Vice President and CLO

(918) 248-3257

Purchase or Re nance ahb-ok.com your commercial investment property Industrial - Oce - Retail - Multifamily with a long-term, xed rate loan and take advantage of historically low interest rates. Disclaimer: This document shall not be construed as a formal offer to provide financing or a commitment on projects, terms, or rates. All loans are subject to normal due diligence of CK & Co., Nichols Hill Plaza. Photos by Brent Fuchs American Heritage Bank at it’s sole discretion. Dated January 20, 2017.

Member FDIC “Penn Square is a no-brainer. It does well. It will continue to do well. It has a good REACH OKLAHOMA’S COMMERCIAL owner and won’t have any REAL ESTATE DECISION-MAKERS problems.” — Jim Parrack, vice president, Price Edwards & Co. SQUARE H E E February T 20 OLD F 17 THO E SE ROOMS xpert reco d mmends expect those businesses to be more entertainment-oriented, elaying so d me hotel evelopme said Cordero. Shopping center owner Westfield has turned nt projects some empty spaces into multifamily housing, with units built in the mall or the adjacent empty land. “Of all the replacement scenarios, that sounds like it has the most promise,” Parrack said. He said he worries about the future of Sooner Fashion

Mall, which has J.C. Penney and Sears as anchors. Quail CREC 2017 FO RECAST IN Springs is on his watch list as well, but he thinks as the FO INSIDE northwest corridor grows, the mall will hold its own. “Penn Square is a no-brainer,” he said. “It does well. It will continue to do well. It has a good owner and won’t have any problems.” Ravina said more retailers are eyeing Oklahoma City than ever before, and the three centers she’s filling are To advertise or purchase an expanded listing in an exactly what the high-end retailers want. But they still like upcoming issue of Square Feet, call: to walk the mall. “Their whole strategy, though, is to go to outdoor centers,” she said. 405.278.2830

SQUARE FEET 7 8 May 2017 EVICTIONS: DO’S AND DON’TS OF TENANT REMOVALS

By Tim Farley evicted, property managers should never who don’t pay according to the leases,” confront the business owner alone. victing a commercial tenant doesn’t he said. “One is for certain, you don’t engage happen overnight, and plenty of Parrack believes it’s more advantageous things can go wrong in the process. in conflict,” Alton said. “There’s no need to regain possession of the space before Renee Alton, property manager for that. Usually, you follow the legal going to court. E procedure and let the attorneys handle it.” for Price Edwards & Co., said her “Get possession sooner and then get Alton said commercial real estate experience in the retail sector dictates the money judgment for what’s owed,” transactions should never be conducted tenants and landlords are fully aware of he said. with handshake agreements. the potential outcome weeks and months When dealing with non-paying tenants, “So much can be left to interpretation, before an eviction occurs. landlords must stand their ground. “Typically, we try to work through so write it down,” she said. “Everything “Don’t be emotional about it. It does these processes, and if they don’t give us you agree to must be in writing. no good to take it personally and start the results that the leases dictate, we step Jim Parrack, a Price Edwards vice up the eviction process,” she said. president, said landlords should keep the thinking about it,” Parrack said. “Just Usually, three notices are given, with process simple: follow the terms of the follow the established protocol according each notice allowing the tenant 10 to 30 lease. to the lease.” days to comply. Beyond that, Parrack said regular Sometimes, landlords feel a revenge “We always try to work it out so communication with the tenant will likely factor against tenants who did not pay. there’s a win-win solution. We want the prevent misunderstandings. “Don’t throw the stuff in the space tenants to be as successful as we want to be “Most tenants want to pay you and away. Place their stuff somewhere in the successful as property managers,” Alton want to do well,” he said. space even though there will be that idea said. “But one thing we stress is if money If tenants are not paying despite of extracting revenge and getting back at constant landlord efforts, there will be less is owed, it has to be paid. Sometimes you them. Sometimes people will do things work out a plan, other times you can’t.” tension between the parties if the eviction that don’t make sense. Don’t make that Business owners, more than residential is carried out sooner rather than later. mistake,” Parrack said. tenants, understand the business of making “Be prompt in what you do,” he said. Although Parrack has dealt with non- money and paying bills. “You want to get someone out in a little “The people in retail are in business for more than a month.” paying tenants, most are “by and large a source of income. They want to make it Parrack echoed Alton’s comments that pretty good.” right because their livelihood depends on notices for payment will be followed by “It’s not like they’re intentionally trying it,” Alton said. legal action. to withhold money from landlords,” he If all efforts fail and tenants have to be “Judges are unforgiving to tenants said.

SQUARE FEET 9 By Tim Farley BROKERS egotiating a commercial land deal can involve several factors depending on the transaction, but the single biggest tip is to understand the market. N “You have to know where you’re at in the market OFFER TIPS ON cycle,” Bob Sullivan, principal owner of the NAI Sullivan Group, said. “If you’re a tenant and there are rising vacancies, you have the upper hand, but you still need to research your information.” NEGOTIATING Commercial tenants need to know the prices and terms of other buildings if they are considering a move. On the flip side, they might be able to work a deal with the landlord and remain in their current space. REAL ESTATE “Maybe you can work some kind of incentive with the landlord like getting your carpet cleaned if you stay,” Sullivan said. “It’s so expensive to move. There’s a lot of market knowledge involved. That’s why with a commercial broker, TRANSACTIONS you can work for the tenant and still get paid by the landlord.” The role a commercial broker plays in helping construct a real estate deal can be invaluable to the buyer. “People have to research and have realistic expectations,”

10 May 2017 Sullivan said. “When I’m helping someone on a commercial An environmental assessment can cost about $12,000, deal, my role is one of an educator as opposed to a salesperson. which Sullivan termed a “pretty good investment” when If a buyer is looking at an industrial building, for example, considering a commercial property purchase. they may not be realistic about what he would pay. My job is Meanwhile, Jim Parrack, vice president at Price Edwards & to inform.” Co., said he prefers a straightforward policy that doesn’t try to Oklahoma is a buyer-beware state, which means landlords hide facts either as a seller or buyer. don’t have to disclose information about the property, which “Books have been written about the right way to enter into is why Sullivan will often recommend to potential buyers a real estate contract, but as a buyer I would recommend they or tenants that they hire a contractor to provide an accurate tell the seller exactly what you need in the property,” he said. assessment of the property. Parrack is not an advocate of either party disclosing their “In some cases on a commercial property, you might want entire position, but he tells clients they should be upfront about to do an environmental assessment because you don’t know their intentions for the property. what’s been done (to the property) in the past,” Sullivan said. The sellers, meanwhile, should disclose what they know In one example, Sullivan said he was working on a strip about the property and not hide pertinent information, Parrack center deal but he discovered the strip center had been said. impacted by a dry cleaning operation that was located there “The seller should be cooperative in doing due diligence years earlier. The sale fell through, he said. with the buyer, but not everybody does that. People have “You find all this out during your due diligence. You different beliefs on how to negotiate,” he said. do studies and the assessment, which is a minor expense Sullivan and Parrack also recommend that both sides ask compared to the value of the property or the cost for cleanup,” questions and then listen to the answers, which can often Sullivan said. reveal important information.

SQUARE FEET 11 BROKERS OPTIMISTIC FOR MULTIFAMILY, OFFICE SECTORS

Liberty Pointe Apartments. Photos by Brent Fuchs

12 May 2017 Sand Hill Apartments.

By Tim Farley Meanwhile, Jason Kennon, manager of the commercial property division for Case & Associates Properties Inc., said s some commercial real estate experts like to say, “old he remains positive about commercial real estate, particularly is gold.” Tim McKay, senior managing director at ARA in the office sector. Newmark in Oklahoma City, said that’s a reference “I think the leasing occupancy in Oklahoma will be stable A the next few years,” he said. “We’re not Houston with a big to older multifamily properties maintaining a high value despite their age. overbuild.” “We’re going to continue to see a strength and revival in New modern commercial buildings are receiving a boost older properties,” he said. “The cost of (new) construction because of a “good crossing” with supply and demand. is going up at such a high rate. What people want is “We’re not in any way crashing at any point,” he said. clean, workforce housing. You can’t build new and charge “You might see a dip in Class A office with a few hits.” affordable rent.” Kennon is staying positive about the future, in part, because McKay believes the older properties that are well-located of the three newer office buildings Case manages in Tulsa, and well-maintained will continue to be in high demand even including Richmond Plaza, Southern Hills Tower and Park as new ones are built. Towers Office Building, which has 11 floors of leasable space. Two of the locales McKay mentioned are in the Tinker Air “We have a good pool of tenants, but it’s not as deep as Force Base area and the Interstate 240 corridor. it once was,” he acknowledged. “I think that’s due to job “I think generally that if older properties are maintained losses in 2014 and 2016. Yes, Class A has softened from the well and are clean, they’ll do well. I think that’s true high occupancy levels we enjoyed for several years, but we’re throughout Oklahoma City,” he said. “Plus, the good news maintaining a positive perspective.” (for older properties) is the new supply is coming down. As Price Edwards & Co., in its 2016 end-of-year market we say, old is gold.” summary, did not anticipate 2017 “to be anywhere near as Prime locations for continued growth among multifamily bad a year for the market.” However, the firm wrote that properties are Midtown and downtown, McKay said. Those challenges remain as more commercial real estate space hits areas, he said, have a mix of old and new properties. the market “from the prolonged energy industry shake-out.” “I do continue to see people wanting to locate where they The summary showed energy companies “still occupy far can live, work and play, and that’s where Oklahoma City will more space than they really need,” with most of the energy flourish,” he said. “There are a lot of amenities people look companies holding onto that space “in anticipation of a for.” rebound in the market.”

SQUARE FEET 13 TOP PROJECTS - OCTOBER-DECEMBER 2016

Courtesy renderings

Ellen Ochoa Elementary Phase I will include construction on: Union Public Schools’ 14th elementary school, Ellen • 24 regular classrooms (Kindergarten-5th grade) Ochoa Elementary, was named after the first Hispanic female • 1 special education classroom astronaut and current director of the NASA Johnson Space • Main office Center in Houston. • Kitchen and cafeteria The design of Ellen Ochoa Elementary calls for three phases of construction, with the first group of about 500 • Second floor outdoor classroom students expected at the completion of Phase I in the fall • Outdoor eating patio off the cafeteria of 2017. Another 500 students will be added, once the $11 million Phase II and $6 million Phase III are finished, in 2019. • Learning Commons (Media Center) Phase I funding, which was approved by voters in • Playground February 2016 and amounts to about $15 million, includes Flintco is the construction manager for the project. initial site development for access roads, parking lots, utilities Architect is Hollis + Miller. and easements involving 32 acres.

14 TOP PROJECTS • May 2017 TOP PROJECTS - OCTOBER-DECEMBER 2016

Name of Property General Contractor Address, City Value Owner Type of Property Architect/Engineering Firm Union Elementary #14 Phase 1 $15,000,000 Union Public Schools Elementary School Flintco LLC 12000 E. 31st St. South, Tulsa Hollis and Miller Architects First Place Plaza Parking Garage $12,857,472 Parking garage 415 S. Main St. East, Tulsa Cyntergy First Baptist Tulsa $11,000,000 Church Nabholz Construction Inc. 403 S. Cincinnati Ave. East, Tulsa $8,020,937 City of Norman Westwood pool, river W.L. McNatt & Co. 2400 Westport Dr., Norman A+Boat & RV Storage $7,522,045 Roy L. Copeland Boat RV and storage 5400 S. Anderson Rd., Oklahoma City Winco Foods LLC $7,000,000 Winco Foods LLC Retail Nate Coombs 7601 E. Reno Ave., Midwest City $7,000,000 Crossroads QALICB LLC 7000 Plaza Mayor Blvd., Oklahoma City Tulsa Technology Center/Lemley - CSME $6,766,471 Tulsa Technology Center Classrooms 3420 S. Memorial Dr. East, Tulsa Crafton Tull & Associates Inc. Tulsa Hills Hospital $6,155,129 Hospital 717 W. 71st St. South, Tulsa Curtis Group Architects Ltd. Heritage Parking Garage $6,000,000 JRB Holdings LLC Parking garage Lingo Construction Services Inc. 113 NW Fifth St., Oklahoma City Mercy Clinic Primary Care - North Portland $5,967,000 Mercy Health Outpatient clinic Flintco LLC 18503 N. Portland Ave., Oklahoma City Garage Condos of Oklahoma $5,666,668 Enterprise Holdings Buildings Garage Condos of Oklahoma 3200 Technology Dr., Bldgs. 1-4, Edmond OnCue 120 $4,850,000 OnCue Building North I-35 & 15th Stree LLC 4100 E. 15th St., Edmond Saint Francis South Entry $4,800,000 Saint Francis Health System Renovated entryway Skanska USA Building Inc. 6161 S. Yale Ave. East, Tulsa Page Woodson Redevelopment PH II Bldgs. 1-7 $4,500,000 PW PH II Development II Buildings Lingo Construction Services Inc. 1029 NE Sixth St., Oklahoma City Macklenburg Duncan Warehouse $4,000,000 M-D Building Products Inc. Building Capstone Construction 4000 N. Santa Fe Ave., Oklahoma City WPI Revamp $4,000,000 Waukesha Pearce Industries Inc. Warehouse/shop Van Hoose Construction Co. 2101 S. Council Rd., Oklahoma City $3,800,000 Building CMS Willowbrook 2300 S. River City Park Rd., Sand Springs OG&E $3,500,000 OG&E/Vance Krebs Power and cooling equipment room Clay Corp. 3220 S. High Ave., Oklahoma City Alpha Gamma Delta - UCO $3,396,486 Alpha Gamma Delta Fraternity Building AC Owen Construction 425 N. Jackson St., Edmond Krittenbrink Architects The Hill at Bricktown $3,377,325 The Hill at Bricktown Multifamily Goldsby Construction Various addresses at NE First Terrace, OKC Troy D. Rhodes MidFirst Bank First Floor remodel $3,000,000 MidFirst Bank Bank Timberlake Construction 501 NW Grand Blvd., Oklahoma City BPAA Architects Santa Fe High School Classroom addition $3,000,000 Edmond Public Schools Room addition Key Construction 1901 W. 15th St., Edmond The Stacy Group Santa Fe High School Fieldhouse $3,000,000 Edmond Public Schools Building Key Construction 1901 W. 15th St., Edmond The Stacy Group Spring Creek Elementary $2,960,000 Deer Creek Public Schools Classrooms CMS Willowbrook 15400 N. Rockwell Ave., Oklahoma City Premiere Pediatrics $2,900,000 Office Crossland Construction 3261 NW 24th Ave., Norman Parkhill Warehouse Liquors $2,600,000 Retail/warehouse Rupe Building Co. 2432 E. 51st St. South, Tulsa GH2 Architects LLC Zarrow International School $2,500,000 School Nabholz Construction Inc. 3613 S. Hudson Ave. East, Tulsa GS Helms & Associates LLC Tulsa Veterinary Specialists $2,200,000 Tulsa Veterinary Specialists Veterinary clinic 4005 S. 102nd East Ave., Tulsa Tulsa Technology Center/Lemley - DMF $2,054,331 Tulsa Technology Center Office 3420 S. Memorial Dr. East, Tulsa Crafton Tull & Associates Inc. Erect of new structure $2,000,000 Washington Prime Group Retail Smith & Pickel Construction 5824 N. Classen Blvd., Oklahoma City Erect of new structure $2,000,000 Washington Prime Group Retail Smith & Pickel Construction 5854 N. Classen Blvd., Oklahoma City ORU/Oklahoma Surgical Hospital $2,000,000 Medical office building 2408 E. 81st St. South, Ste. 410, Tulsa Davies Architects Schlotzsky's $1,800,000 Bryan Whitfield Remodel/commercial building Bryan Whitfield 628 W. Danforth Rd., Edmond ID Studio 4 LLC $1,771,516 City of Norman Concession W.L. McNatt & Co. 2400 Westport Dr., Norman Skyranch Elementary Classroom Addition $1,750,000 Moore Public Schools Classrooms Omni Construction 9501 S. Western Ave., Oklahoma City 10 Market Square @ Covell Village $1,700,000 Covell & Kelly Group LLC Building Covell Investors LLC 1380 W. Covell Rd., Edmond Goldfish Swim School $1,700,000 Mount Baldy Real Estate Swim school Ward Construction 10 NW 146th St., Oklahoma City University Club Tower $1,700,000 Apartments Cowen Construction IV Inc. 1722 S. Carson Ave. West, Tulsa Collision Works $1,600,000 Jake Nossaman Commercial/auto repair 13040 NW 10th St., Oklahoma City Integrated Architecture Moore Norman Technology Center $1,583,608 Moore Norman Technology Center Parking lot 13301 S. Pennsylvania Ave., Oklahoma City Christ the King $1,500,000 Christ the King Church Church Christ Construction Inc. 9223 E. 95th Ct. South, Tulsa Erect of new structure $1,300,000 Washington Prime Group Retail Smith & Pickel Construction 5846 N. Classen Blvd., Oklahoma City Hydrant Car Wash $1,300,000 Service station/repair garage 2245 NW 178th St., Oklahoma City

SQUARE FEET • TOP PROJECTS 15 QUESTION:

What is one of the biggest ASK THE challenges in today’s architecture? INDUSTRY How do you try to overcome it? “The technology used to design How do we bridge the divide and not fall into it? buildings advances at a bewildering pace Involve those digital divas in the art of building and of sophistication but the construction employ the diva’s art to inform building. Reinforce the idea of buildings is still fundamentally that architecture involves lifelong learning in a new type of unpretentious. The result is a divide co-dependent apprenticeship. Not as it was, and will never between fresh design grads fluent in be again, yet part of why we chose architecture in the first creating virtually, what seems to be a place. To shape a synthesis of art and science that defines building, and the generations ahead of humankind’s oldest and highest aspiration. Creating virtue.” them who are tasked with turning those digital files into well-functioning buildings sitting on Anthony McDermid dirt. The divide between design document production and Principal architects dedicated to building is growing. TAP Architecture

“Our profession is changing rapidly special and beautiful and appropriate and inspiring often as a result of technological advancements, dissolve in the shuffle. changes in project delivery methods, and At GH2 we believe that Architects are uniquely qualified the improving economy. Project funding to engage in the building delivery process. We work for happens in very creative ways, and the our clients to help them receive projects that are not only number of projects delivered through economical in terms of cost and construction duration, public-private partnerships is surging. but also valuable in terms of how they inspire, make their The lines between design, fabrication, organization better, and support their community and the and construction are just disappearing. environment.” These changes will continue to accelerate at a pace that we Michael Hall have never seen. This acceleration is the biggest challenge to Principal architecture and design, since the things that make a project GH2 Architects

“Competition is a good thing. Since the start of the Great Recession, many architects have Having said that, competition can be found themselves forced to make some difficult decisions, counterproductive for the architect, the including lowering fees. Our firm is built on relationships, client, and society if qualifications take a so for us the answer has been to communicate openly and back seat to fees when it comes to selecting honestly with our clients about their expectations and doing an architect. Too often, clients approach the hard work necessary to align our staff’s capabilities with hiring an architect in the same way that those needs.” they might buy a car, with cost driving the decision. The truth is that hiring an Daryl L. Bray architect based on qualifications will result in better service, Principal and Chief Operating Officer fewer changes and quicker delivery. Of course, it’s impossible SGA Design Group and unrealistic to completely escape competition on fees.

16 TOP PROJECTS • May 2017 BIG DEALS - INDUSTRIAL 1ST QUARTER 2017

An artist’s conception of the renovations planned at 108 E. California Ave. in Oklahoma City’s Bricktown. Courtesy rendering

Square Price Year Buyer Property Address Selling Price Feet Per S.F. Built Seller Professional Services 11605 E. 27 St. North $7,730,000 100,000 $77.30 2005 Tulsa Airpark Industrial LLC First American Title & Trust Emerald Glen Building LLC 11401 E. 27th St. North $6,600,000 100,000 $66.00 2005 Tulsa Airpark Industrial LLC First American Title & Trust Emerald Glen Building LLC 9797 E. Admiral Pl. North $5,375,000 209,275 $25.68 1973 Industrial Developers and Investments LLC and Tulsa Fidelity National Title Insurance Co. Crosstown Partners LLC Saul Holdings Limited Partnership Part of S10-T13N-R3W $4,914,500 Not listed JDC NOKC LLC First American Title & Trust First American Title & Trust Co. 2505 S. 33rd Ave. West $4,697,000 40,751 $115.26 1975 Magellan Pipeline Co. LP Allan Edwards Inc. 2000 N. Indianwood Ave. West $3,500,000 57,500 $60.87 1999 Property Leasing Tulsa LLC Commercial Title & Escrow Services Inc. 1900 Indianwood LLC 8040 NW 122nd St. $3,284,000 48,494 $67.72 1986 SS Willow Creek LLC F&S Investment Properties LLC 13401 N. Indiana Ave. $3,271,500 63,140 $51.81 1996 SS Chisholm Creek LLC F&S Investment Properties LLC 3745 NW 166th St. $2,700,000 60,280 $44.79 2009 PS Mid-West One LLC Chicago Title Oklahoma The Mini's @ Fountain Lake LLC 3401 N. Bryant Ave. $2,351,500 51,818 $45.38 1973 SS North Bryant LLC F&S Investment Properties LLC 108 E. California Ave. $2,150,000 13,694 $157.00 1945 The Falls at Bricktown LLC First American Title & Trust Co. Cotton Investment Co. LLC 2330 NW 10th St. $2,150,000 43,442 $49.49 1984 SFI 10th St. LLC First American Title & Trust Interstate Real Estate Co. Multiple parcels $1,850,000 15,660 $118.14 1966 MidFirst Bank Old Republic Title Company of Oklahoma North Western Associates LLC 1401 Enterprise Ave. $1,478,000 20,300 $72.81 1978 Reading Midwest Distribution LLC American Eagle Title Group Caseco Truck & Body Equipment Sales - OKC LLC

Multiple parcels $1,170,000 31,725 $36.88 1948 J. Lou Properties LLC Oklahoma City Abstract & Title Co. Veazey LLC

SQUARE FEET • BIG DEALS – INDUSTRIAL 17 BIG DEALS - MULTIFAMILY 1ST QUARTER 2017

Garden Gate Patio Homes at 4023 Fontana Dr. in Oklahoma City. File photo by Brent Fuchs

Square Price Year Buyer Property Address Selling Price Feet Per S.F. Built Seller Professional Services 4023 Fontana Dr. $12,552,000 16,143 $777.55 1986 Garden Gate LLC Secure Title & Escrow LLC SEC Garden Gate LLC

2530 N. Rockwell Ave. $3,865,000 89,200 $43.33 1970 Jardini Family Trust Oklahoma City Abstract & Title Co. S Cubed Investments LLC

4311 and 4312 SE Ninth St. $3,150,000 Not listed B&L Grace Properties LLC Trinity-Dor Jay-Del City-OK LLC

240 E. 15th St. $2,240,000 42,284 $52.98 1966 240 E. 15th Street LLC American Eagle Title Group French Quarter Apartments LLC

2037 NW 26th St. $2,000,000 39,984 $50.02 1953 Vintage 1953 LLC The Oklahoma City Abstract & Title Co. Signet Property LLC

4631 S. Braden Ave. East $1,800,000 50,910 $35.36 1964 The Gardens at Midtown LLC Old Republic Title Company of Oklahoma AMG LaFortune LLC

701 Culbertson Dr. $1,250,000 25,248 $49.51 1948 Diana Building LLC First American Title & Trust Huxley Estate West LLC

900 E. Wayne St. $835,000 18,132 $46.05 1969 Brown Realty Investments LLC Chicago Title Oklahoma RSN Ltd. LLC

4315 N. Rockwell Ave. $436,000 10,004 $43.58 1981 New 115th LLC Oklahoma City Abstract & Title Co. William E. Demeduk and Brad D. Lane

6814 NW 50th St. $350,000 7,367 $47.51 2001 Branch15 Inc. Stewart Title of Oklahoma Inc. The Boyd House LLC

18 big deals - MULTIFAMILY • May 2017 BIG DEALS - OFFICE 1ST QUARTER 2017

After years of turmoil and being ordered into receivership, the First National Center in downtown Oklahoma City was sold for $23 million.

Square Price Year Buyer Property Address Selling Price Feet Per S.F. Built Seller Professional Services 120 N. Robinson Ave. $23,000,000 Not listed NE CS First National LP American Eagle Title Group Jim Parrack 1705 Renaissance Blvd., Ste. 100 $4,200,000 Not listed CAP 1705 LLC Edmond Renaissance Medical Office Building LLC

6403 NW Grand Blvd. $3,250,000 13,216 $245.91 1969 Blue Ribbon NHEB LLC American Eagle Title Group NHEB Realty Holdings LLC 228 Robert S. Kerr, Ste. 620 $2,975,000 86,000 $34.59 1923 Court Plaza LLC Chicago Title Oklahoma Rafter Cross LLC 2444 W. New Orleans St. South $1,300,000 24,206 $53.71 2008 Wolf Creek Properties LLC Commercial Title & Escrow Services Inc. CSC Enid Properties LLC 2300 E. Second St. $1,150,000 Not listed Hunter Miller Family LLC First American Title & Trust Master Falls 252 LLC 4700 W. Urbana St. South $995,000 5,664 $175.67 2006 Rocky Top Properties LLC LVT LLC 1700 S. State St. $977,500 Not listed Allora LLC Donald Copeland Britton and Loretta Sue Britton 9343 S. Mingo Rd. East $972,000 4,564 $212.97 2000 The 5020 Company LLC Tulsa Abstract & Title Co. W.O. Smith Trust 2106 S. Atlanta Pl. East $913,500 3,075 $297.07 2003 Jelsing Dental Building LLC Guaranty Abstract Co. Gene W. McCormick Real Estate LLC 2619 Kelley Pointe Pkwy. $890,000 4,632 $192.14 2015 Red TR-KPP LLC KP Partners LLC 3645 N. Council Rd. $660,000 3,655 $180.57 1996 Professional Resource Development Inc. J. Andrew McKamie and Rhonda J. McKamie 6901 N. Robinson Ave. $624,000 6,400 $97.50 1982 The Rob Plot LLC Stewart Title of Oklahoma Inc. Robert L. Fillmore Revocable Trust 912 NW 139th Pkwy. $573,000 3,105 $184.54 2012 Hail Yeah Investments LLC Oklahoma City Abstract & Title Co. Tim Hughes Investments LLC 805 E. 33rd St. $522,000 Not listed J44 LLC Offices @ Thirty Third Street LLC

SQUARE FEET • big deals - OFFICE 19 BIG DEALS - RETAIL & OTHER 1ST QUARTER 2017

CVS Pharmacy, 1301 N. Santa Fe Ave., Edmond

Square Price Year Buyer Property Address Selling Price Feet Per S.F. Built Seller Professional Services 6921 E. Admiral Pl. North $7,550,000 91,738 $82.30 1975 TULSA/SAV LLC Guaranty Abstract Co. 6921 E. Admiral Place LLC 1825 E. Memorial Rd. $5,800,000 87,395 $66.37 2008 PS Mid-West One LLC Chicago Title Oklahoma The Mini's @ Fountain Lake LLC 4512 S. Pennsylvania Ave. $5,270,000 104,152 $50.60 Not listed Square Two LLC Price Edwards & Co. IPS Grant Square OKC LLC 4606 S. Pennsylvania Ave. $5,270,000 104,152 $50.60 1958 Square Two LLC Old Republic Title Company of Oklahoma IPS Grant Square OKC LLC 11699 E. 96th St. North $4,775,000 45,050 $105.99 2007 Vinayak Inn LLC Chicago Title Oklahoma Owasso Ventures LLC 9005 E. Skelly Dr. $4,600,000 4,590 $1,002.18 2015 Spirit Realty LP First American Title Insurance Company RMPB LLC 1301 N. Santa Fe Ave. $4,130,000 14,800 $279.05 2004 Alexander Fund XIII LLC Chicago Title Oklahoma Inland Western Danforth LLC 300 Outlet Shoppes Dr. $4,000,000 6,687 $598.18 2015 NADG NNN TCE (OK) LP First American Title Council Road Properties LLC Multiple parcels $3,826,000 Not listed SS Macarthur LLC F&S Investment Properties LLC 8021 E. 33rd St. South $3,350,000 32,797 $102.14 1999 Atheneon Hospitality LLC Executive Title & Escrow Co. SRJ Hospitality LLC 1900 NW 164th St. $3,307,500 13,851 $238.79 2015 Store Master Funding X LLC Oklahoma City Abstract & Title Co. Store Master Funding VII LLC 1881 S. Yale Ave. $3,295,000 6,135 $537.08 2015 BLT Yale Avenue LLC Chicago Title Oklahoma HGA Yale LLC 2121 W. Hefner Blvd. $2,800,000 1973 Triple M Properties LLC Chicago Title Oklahoma Penn-Hefner LLC 4620 Enterprise Way $2,675,000 22,705 $117.82 1995 Immanuel Happy Homes LLC The Oklahoma City Abstract & Title Co. Shri Krishna Inc. 14701 N. Kelley Ave. $2,650,000 68,548 $38.66 1997 D&R Holdings Group LLC First American Title & Trust KHI Property Holdings Edmond LLC 1501 S. Broadway $2,575,000 3,867 $665.89 Not listed R2 C2 LLC BD 16 Investments Part of lots 1-4, Blk. 1 $2,564,000 Not listed Copper Ridge Park LLC American Eagle Title Group Chesapeake Land Development Co. LLC 10461 S. Memorial Dr. East $2,350,000 5,555 $423.04 2008 L & M Hideaway Properties LLC Tulsa Abstract & Title Co. SRC Memorial LLC 1425 S. Santa Fe Ave., Ste. A $2,065,000 17,688 $116.75 1997 1425 South Santa Fe LLC American Eagle Title Group Tapp Investments LLC 961020 S. Garnett Rd. $2,029,000 152,902 $13.27 1970 Cottages Grace LLC big deals - SecureRETAIL Title & & EscrowOTHER LLC • May 2017 Grace Fellowship Title Holding Corp. SALESSALES PPOINTSOINTS

EMPLOYMENT AIR TRAFFIC Will Rogers World Airport 2017 (Jan.-March) 2016 (Jan.-March) Enplanements...... 403,266...... 395,134 Deplanements...... 414,358...... 408,199 Total Passengers...... 817,624...... 803,333

Tulsa International Airport 2017 (January) 2016 (January) Enplanements...... 94,979...... 95,061 Deplanements...... 99,829...... 97,780 Total Passengers...... 201,987...... 199,057

STATEWIDE March 2017 March 2016 Labor Force...... 1,836,643...... 1,831,859 Employment ...... 1,756,961...... 1,743,073 Unemployed ...... 79,682...... 88,786 Unemployment rate...... 4.3% ...... 4.8% Total Nonfarm jobs ...... 1,655,800...... 1,657,700 Manufacturing jobs...... 129,500...... 130,600 Services Producing jobs ...... 1,401,300 ...... 1,404,400 Government jobs...... 354,600...... 354,300 Trade, Trans. & Utilities jobs...... 301,200...... 307,300

OKC MSA March 2017 Labor Force...... 673,846 REAL ESTATE Employment...... 648,548 OKC Area Residential March 2017 March 2016 Unemployed ...... 25,298 Closed Listings ...... 1,957...... 1,905 Unemployment rate...... 3.8% Pending Listings ...... 2,432...... 2,196 Unemployment rate (March 2016) ...... 4.1% New Listings ...... 3,386...... 3,235 Median Sale Price ...... $159,500...... $156,500 Median % List Price to Selling Price ...... 99% ...... 98.97% TULSA MSA March 2017 Median Days on Market ...... 34...... 31 Labor Force...... 475,095 End-of-Month Inventory...... 7,882...... 8,573 Employment...... 454,286 Months of Supply of Inventory...... 4.22...... 4.41 Unemployed ...... 20,809 Unemployment rate...... 4.4% Tulsa Area Residential March 2017 March 2016 Unemployment rate (March 2016) ...... 4.8% Closed Listings ...... 1,324...... 1,216 Pending Listings ...... 1,591...... 1,395 TOTAL RETAIL TRADE New Listings ...... 2,488...... 2,271 December 2016 December 2015 Median Sale Price ...... $154,900...... $140,200 Statewide...... $3,117,722,890...... $3,354,910,354 Median % List Price to Selling Price ...... 98.38% ...... 98.50% OKC MSA...... $1,132,046,715 ...... $1,211,834,110 Median Days on Market ...... 27...... 37 Tulsa MSA...... $799,625,803 ...... $867,073,450 End-of-Month Inventory...... 5,384...... 5,010 Months of Supply of Inventory...... 4.47...... 4.38 BANKRUPTCIES 2017 (Jan.-March) 2016 (Jan.-March) Sources: Oklahoma Employment Security Commission; The Center for Economic and Western District of OK Filings ...... 1,225...... 1,225 Management Research at the University of Oklahoma’s Price College of Business; U.S. Bankruptcy Courts of Western, Northern and Eastern Districts of Oklahoma; Will Rogers Northern District of OK Filings ...... 598...... 586 World Airport; Tulsa International Airport; Oklahoma City Metropolitan Association of Eastern District of OK Filings...... 355...... 317 Realtors and Greater Tulsa Association of Realtors

SQUARE FEET • sales points 21 FOR SALE OR LEASE

• For Lease Boulevard Plaza • Total building: 23,800 SF 33rd and Boulevard, Edmond • $14.00 s/f/y plus CAM – MG • Located in high traffic area on NE corner of 33rd and Boulevard in Edmond • New landscaping • Pedestal sign • Ample parking • Edmond utilities Michael Biddinger Real Estate (405) 236-4747

• For Lease S.E. 44th St. Warehouses • 4,750 SF available 1201-1209 S.E. 44th St. • 4% commission paid for closed leases • Great South OKC location with easy access to I-35 and I-40 • Front and back pedestrian doors • Front and back grade level overhead doors • Secure, insulated steel buildings • Small office and bulk warehouse in each space Michael Biddinger Real Estate • Skylights and gas heaters (405) 236-4747 Ext. 23 • $5.00 s/f/y plus CAM – MG

• For Lease The Village Shopping Ctr • 1,900 - 2,350 SF - 2,800 SF available 4718-4754 S.E. 29th St. • 4% commission paid for closed leases • Close to Tinker Air Force Base and I-40 • Great frontage on SE 29th Street • Glass and brick veneer building • Fire suppression system throughout Michael Biddinger Real Estate • High traffic area in the heart of Del City (405) 236-4747 Ext. 23 • $7.00 s/f/y plus CAM – MG

Wilshire Court •For Lease 8001-8031 N. Wilshire •1,800 SF available •Office/warehouse and bulk warehouse •12X12 grade level overhead doors •Ample parking •$5.00 s/f/y plus CAM - MG

Michael Biddinger Real Estate • Fenced yards available (405) 236-4747 Ext. 23 • New concrete

• Beautiful Class A highrise 110 W 7th • Direct accessibility from two major expressways • Adjacent garage and surface lot parking • Windowlines provide commanding views of Tulsa • Top floor conference/banquet center with panoramic views • On-site snack shop, style shop, credit union/ATM • Elegant interior finishes Trinity Group • 8-foot-6-inch ceilings (918) 493-8470 • On-site management and day porter

22 for sale or lease • May 2017 11400 N I-35 • 29,775 – 62,775 SF available for lease Oklahoma City, OK • $5.50/SF/YR (NNN)

• New Class A Warehouse

• 50’ x 50’ column spacing

• 30’ clear height

• I-35 frontage Brett Price, CCIM, SIOR (405) 613-8380 Kris Davis, SIOR (405) 202-9525 • Located off E Hefner Rd. & N I-35

2021 Lewis Center 2021 S. Lewis Avenue, Tulsa • Free covered parking garage • Midtown location - close to Utica Square Shopping Center • Close to restaurants, shopping, banking and downtown Tulsa Warren Stewart (918) 508-2803

Northgate Commerce Park • 69,634 SF available for lease 4401 E. Hefner Rd., Oklahoma City, OK • $5.50/SF/YR (NNN) • Class A Warehouse

• 200’ truck court

• 13 dock high doors

• 50’ column spacing Brett Price, CCIM, SIOR (405) 613-8380 Kris Davis, SIOR (405)202-9525 • Located off E. Hefner Rd. and N 1-35

Corporate Tower • For Lease 101 N. Robinson Ave., Oklahoma City, OK • Responsive on-site management • Easy access to downtown retailers and restaurants • Convenient adjacent parking • High speed communications provided by multiple providers

Mark Beffort • Dual electrical feeders provide ample reliable electricity (405) 879-4757 • Storage space available in the building’s basement

Exchange Center • High visibility 4606-4608 S. Garnett Road, Tulsa • Immediate access to Broken Arrow Expressway & Highway 169 • Terrific location • Ample Parking Warren Stewart • On-site property management (918) 508-2803

SQUARE FEET • for sale or lease 23 Oklahoma Tower • For Lease 210 W. Park Avenue • Convenient adjacent parking

• High-speed communications provided by multiple providers

• 24-hour on-site security personnel and video surveillance Mark Beffort • On-site restaurants, salon, florist and men’s clothing store (405) 879-4757

Robinson Renaissance • Flexible Floor Design 119 N. Robinson, Oklahoma City • Beautiful Open Space Atrium

• Food Court in Lower Level

• Full Service Bank

• Quick Print Copy Store Vicki Knotts and Ben Knotts (405) 840-1500 • Various Size Suites Available

The Oil Center • For Lease 2601 NW Expressway • Beautiful lobbies on all floors

• Building conference room

• On-site property management and maintenance

• Covered and surface parking available Vicki Knotts (405) 879-4761 • On-site restaurant and salon

Valliance Tower • For Lease 1601 NW Expressway • Covered and surface parking available • On site bank, restaurant and hair salon

• 24 hour on-site security

• On-site management

Mark Beffort • Conference room (405) 879-4757 • High speed communications provided by multiple providers

Waterford • Excellent restaurants 6303 Waterford Boulevard • World class hotel

• Easy access to major arteries and interstates

• 24-hour manned security control center

• Abundant covered parking Waterford Properties (405) 843-4900 • On-site banking

24 for sale or lease • May 2017

DOWNTOWN OKC’S PREMIER OFFICE PORTFOLIO

CITY PLACE CORPORATE TOWER

OKLAHOMA TOWER ROBINSON RENAISSANCE BRANIFF BUILDING

Class A Towers | Iconic Historic Buildings ngkfok.com

OKLAHOMA CITY TULSA 405-840-1500 918-481-3200 4 May 2017