What’s Next at First National?
That’s the question for tenants and management alike as everyone awaits the appointment of a receiver following Tuesday’s ruling by Judge Vicki Robertson that the owners, lead by Milbank Real Estate CEO Aaron Yashouafar, are in default on a $19 million mortgage with Capmark Bank.
Tenants want to know what’s going on. Tenants are anxious. That’s understandable. One thing to keep in mind as some of you out there contemplate storming the gates of the management office is that they’re just as much in the dark as anyone else. Today they work for Milbank. Today they have to follow orders from Los Angeles (where Yashouafar is based). The management team doesn’t know who they will be working for next week. They don’t even know if they have jobs.
Don’t be surprised if the vows of continuing the fight give way to something different. Over the next day or two I’ll be delving into Milbank’s actions elsewhere and what we might learn from this recent history. I don’t think the tower is in danger of going dark – there are far too many influential tenants in this complex, most notably Devon Energy, and enough interest by local players in acquiring this property and restoring it to its former glory.
For now, the best move tenants might have is to relax, stay vigilant, watch, listen, and of course let me know of any big changes!
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Comments
Alex, I’m going to sit back, open a bag of popcorn, and see how this plays out with the blog’s other readers.
And replace it with a nice big, corporate plaza – with a few crepe myrtles here and there, some native grasses and the like for accents. Or, perhaps more surface parking…that would be downright visionary.
Oh yes, that would indeed be visionary! It’s only the latest fad in Downtown OKC development. Tear it down and replace it with a beautiful and pedestrian-friendly plaza. We can keep the spire on top and put it in the rinky dink courtyard of the Santa Fe Parking Garage with all the other remnants of our lost gems.
Very Funny. I think Steve had this ownership group pegged from the start – never had a chance to make it work.
I should have said never had a chance of making it work. They seemed pretty bush-league all the way around.
I don’t think there’s any chance it will go dark. The management just put in a serious bid to get my employer to move there. My employer is rather large and is contemplating the move.
All kidding aside, wouldn’t it be wonderful to see someone come in and renovate 15-20 floors into another fine hotel downtown. I recently stayed in a Hampton Inn (of all places) in downtown Baltimore, which this was done in the old UFS&G Bank Building there. The FNB Grand Hall could be a wonderful lobby area with the arcade remaining as a traditional sales area. Some of the office space could still remain in the tower/center as a true mixed-use for a majestic icon downtown. Marriott are you listening?
Tom, I’ve heard that discussed before. John, the city won’t let First National go dark after seeing how much that complicated bringing the Skirvin back to life. And there are now people based here in OKC who are eager to do some wonderful things with First National if they can get control.
But they’ve got to put capital in it Steve, MAJOR capital. Throwing a couple of million at the FNB building then congratulating yourself on how \much\ you did was very disingenous on the part of Milbank. The next owners are really going to need to invest to stabilize this property.
I don’t think this property has any business being office. There is no market for that, especially for Class B/C/whatever office space downtown. Sure, you could do a complete rehab and turn it into Class A space and be able to make it very competitive, but you may as well explore other more interested uses if you’re going to do that.
I forgot to mention how the office market sort of has its hands full downtown, at the moment. Attached parking (the Main Street Garage, right behind the FNC) is another huge advantage to this site.
Obviously the building should be torn down.