Federal Reserve Building in OKC to go on market

Journal Record, The (Oklahoma City), Nov 11, 2005 by Brian Brus

The Federal Reserve Bank's Oklahoma City branch building will quickly be picked up as office space in an increasingly competitive downtown Oklahoma City market when it goes up for sale soon, local real estate industry experts said.

The Federal Reserve Bank of Kansas City announced Thursday that in addition to changing the structure of its Oklahoma City Branch by adding Chad Wilkerson as regional economist to head the branch, the bank would also relocate its operations from 226 Dean A. McGee Ave. to other local office space.

The branch is already in the process of transitioning out of its cash and check processing operations. The move is necessary to better serve the branch's new structure and responsibilities, the bank's board of directors announced.

Although no timeline has been set for the sale and no decisions revealed about relocation, Equity Realty President Judy Hatfield and others said they've been eagerly awaiting word from the Fed on when the property might become available.

What you're seeing is Oklahoma City cleaning some of the old stuff out and putting a better face back on the market, Hatfield said. This fits that mold, and I think it's very exciting news.

A recent economic development retreat by Oklahoma City civic and business leaders addressed older downtown buildings and revitalizing the real estate market in the center of the city. Hatfield said the announcement Wednesday by energy giant Kerr-McGee of converting three of its empty office buildings to condominiums supports the city's new realignment.

With the price of oil today, there are some crazy things going on with people who have money. When you look at the Southwestern Bell building near the (Murrah) Memorial, who would have thought it would be picked up so quickly? she said. With the frenzy of activity downtown right now, when you have a building like the Fed branch that represents an important part of our history, something so architecturally rich, it's going to be picked up.

John Maisch, president of Egressive Commercial Real Estate, said, In light of the Kerr-McGee news, I'm sure that as office vacancy drops the (Fed) building will be needed as office space. I don't see it being adapted for other uses.

And the building's proximity to the federal courthouses should make it attractive to companies involved in related businesses, he said.

Where the branch goes is also a matter of some interest, Maisch and others said.

They're going to be such a great tenant that everybody is going to want them, he said. So the Fed is going to have the pick of the litter, so to speak.

Real estate experts in the market were reluctant to discuss additional details of the branch's impending move, citing the Fed's attitude toward security issues.

Wilkerson is currently a policy economist at the Federal Reserve Bank of Kansas City. He provides the bank with advice on monetary policy based on regional economic data and information gathered from Tenth District business contacts.

Chad has the credentials and experience in regional economics to contribute substantially to the Federal Reserve's understanding of regional economic conditions in this new position, said Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City. He will conduct regional economic research; expand on our current relationships with banking, business and community leaders within the region; and work closely with the branch directors, who have a critical role in our organization.

Wilkerson will assume his new promotion position as branch executive in January.