Transition of Kerr-McGee's 3 historic buildings to Corporate

Journal Record, The (Oklahoma City), Jun 26, 2006 by Kevan Goff-Parker

Just seven months ago, Kerr-McGee Corp. Chief Executive Luke Corbett announced that three of the company's empty historic buildings downtown on Robinson and Robert S. Kerr avenues would be renovated and developed into condominiums.

But as of Friday morning, after the disclosure that oil and natural gas producer Anadarko Petroleum Corp. will acquire Kerr- McGee Corp. for $16.4 billion in cash, the transition of the three buildings to Corporate Redevelopment Group LLC, led by Anthony McDermid, principal of TAP architecture, was left up in the air.

We were going to acquire the two buildings on Robinson from Kerr- McGee, McDermid said. We've been in negotiations for years. We planned to purchase them with the intentions of putting in luxury condos.

He said the project was in the design stages to rehabilitate the former office buildings at 135 Robert S. Kerr Ave., an 11-story building with 155,911 square feet that was built in 1921 and the building at 324 N. Robinson Ave., which is a 10-story building with 75,584 square feet that was built in 1923.

We planned to restore the facades as close to their historical look as possible, McDermid said. We planned retail on the first floor and condominiums above.

He had calls in to Kerr-McGee and said he hoped soon to find out the status of the negotiations. McDermid said he as yet had no design plans for Kerr-McGee's building at 111 Robert S. Kerr Ave., which is a seven-story building with 38,736 square feet that was built in 1902.

I'm very hopeful we can go ahead with our plans, McDermid said.

Kerr-McGee spokesman John Christiansen confirmed Friday that the three historic buildings were still available to transition to Corporate Redevelopment Group LLC.

We anticipate moving forward with the arrangement for the three buildings on the Kerr-McGee campus, Christiansen said.

A printed report stated that Anadarko Petroleum Corp. will review the consolidated assets of its own company, Kerr-McGee Corp. and Denver-based Western Gas Resources (which it will also acquire) to select divestiture candidates, with the dual goals of paring acquisition-related debt and refocusing the portfolio.

Christiansen said Kerr-McGee's deal of donating land for the redevelopment of the Triangle still stands. Ronald Bradshaw, owner of Colony Partners Inc., and his son, Jason Bradshaw, run the real estate and investment company which is spearheading the refurbishment of the donated land. They are also partners with Triangle Development Partners.

The Triangle is bordered by Interstate 235 on the east, Bricktown on the south, Broadway on the west and 10th Street on the north. The donated land is situated east of the railroad tracks between Fourth Street and Second Street and Walnut Avenue. Once the donated land is rehabilitated, partners in the Triangle will purchase it.

A printed document stated that the Triangle's goal is to take mostly vacant and underdeveloped urban area east of downtown Oklahoma City and turn it into a vibrant mixed-use environment where people can live, work and play in an upscale, fashionable urban community. The Triangle will include residential, retail and commercial spaces as well as ample parking, parks and gardens.

Ronald Bradshaw said he and his son solidified the deal with Kerr- McGee last summer and that the project is moving forward.

None of this will affect on the Triangle, Ronald Bradshaw said. The ground is being cleared and we've started construction on the first 15 brownstones. We're doing all the things you need to do to develop this and it is well under way. There's a big demand for downtown neighborhoods and urban living and Kerr-McGee was interested to make this a quality development.

He said he and his son's partnership with Kerr-McGee included conducting environmental testing and a feasibility study.

Speculation by commercial property experts was high Friday. Many wonder what will happen to Kerr-McGee's more than a dozen property assets in Oklahoma City, including its corporate headquarters at 123 Robert S. Kerr Ave., if Kerr-McGee's employees move or lose their jobs.

Kerr-McGee's corporate headquarters rests in two buildings that were built in 1973. One building is 489,408 square feet and the other building is 49,366 square feet. The company's underground parking garage is 222,010 square feet.

Christiansen said there are no plans for the Kerr-McGee Tower, which serves as the company's corporate headquarters.

At this time, no decision has been made in its regard, Christiansen said.

Ford Price Jr., a principal at Price Edwards & Co., said many people had speculated that Kerr-McGee might be acquired after the company spun off Tronox Inc., its chemical division.

It is unfortunate, Price said. Everyone in the city hates to see Kerr-McGee go. Those are a couple hundred of very important jobs. If they leave, the move is a symbolic event more than anything else.

He said from a pure commercial real estate standpoint, it will be interesting to see what Anadarko Petroleum Corp. plans to do with Kerr-McGee's corporate headquarters building.