Kanbar properties in downtown Tulsa set to be sold
BY ROBERT EVATT World Staff Writer
Thursday, March 14, 2013
3/14/13 at 2:52 AM
Several more buildings in the Kanbar portfolio of downtown properties are set to be sold off, while others may be converted to residential use, said Bob Pielsticker of CB Richard Ellis/Oklahoma.
Pielsticker said John and Stuart Price, local developers who purchased an ownership stake in Kanbar last year, have a clear plan for each of the buildings, which total 2.1 million square feet.
"Having a local decision-maker on the ground is great for the portfolio and great for the city of Tulsa," Pielsticker said. "John and Stuart Price will make things happen."
Pielsticker spoke Wednesday during the Greater Tulsa Association of Realtors' annual Commercial Market Update at the Renaissance Tulsa Hotel & Convention Center. The seminar also featured information in all aspects of commercial real estate, including future retail, office and industrial developments.
The Bank of America Tower at 15 W. Sixth St., the Adams Building at 403 S. Cheyenne Ave. and the shuttered Oil Capital Building at 507 S. Main St. have been for sale, with the owners hoping to get prices of $19 million, $1.9 million and $1.1 million respectively, Pielsticker said. He noted that lower-price offers were made for the Bank of America Tower but were rejected.
The Avanti Building at 810 S. Cincinnati Ave. was sold last month to First Presbyterian Church for $2.1 million. Pielsticker said the church is considering various options for the property, including renovating it for office use or turning it into a storage facility.
Currently the Pythian and TransOK buildings are being eyed for possible conversion to residential use.
Pielsticker said the portfolio is now 50 percent occupied, though that figure is down 15 percent due to Cimarex vacating its space at First Place Tower in favor of the nearly-finished One Place Tower.
Jared Andresen of Grubb & Ellis/Levy Beffort said more office buildings are under construction in the Tulsa area than at any time since the mid-1990s, thanks to improved occupancy.
"New construction lease rates have exceeded construction costs," he said.
Current office projects include the new American Bank & Trust Co. headquarters at 61st Street and Yale Avenue, an expansion of Utica Place at 2200 S. Utica Ave. and several other projects that have yet to be announced.
Mendy Parish of CB Richard Ellis/Oklahoma said retail vacancies have declined to an estimated 13.25 percent, and that national restaurants and shops have a renewed interest in Tulsa.
"The activity levels are the highest I've seen in the 12 years I've been here," she said.
Planned new developments include the long-delayed and slimmed-down Shoppes at Warren Place at 61st Street and Yale Avenue, and the Vineyard on Memorial near Lifetime Fitness at 106th Street and Memorial Drive.
Parish said Trader Joe's is still "cool" toward Tulsa, though the retailer did notice the recent "Bring it to Tulsa" campaign by Tulsa's Young Professionals, an event that allowed residents to order Trader Joe's items for pickup at a one-day pop-up shop in Tulsa.
Jeff Scott of Scott Realty Co. said the Tulsa Stadium Trust is still pursuing development of the properties it owns immediately adjacent to ONEOK Field, with several redevelopment groups - both local and national - in talks concerning the former trucking terminal immediately to the south.
Jamie Hill of CB Richard Ellis/Oklahoma said vacancies at Tulsa-area industrial buildings have dropped to 11.4 percent, and that 4.6 percent of that vacancy is due solely to the former Gatorade plant at Mid-America Industrial Park in Pryor and the former Zeledyne glass plant on 129th East Avenue between 51st and 61st streets.
Hill said a potential buyer for the Gatorade plant is in advanced negotiations.
Original Print Headline: Portions of Kanbar's portfolio being sold
Robert Evatt 918-581-8447