Take it for what it's worth, which is not much, but one of the commentors on the World site said that Kaiser is going to buy the Crowne Plaza out of Bankruptcy and take an 80% stake in that hotel. I have no idea if true, but interesting if it is.
Yup. This is reprinted from the (subscription only) Journal Record:
George Kaiser Family Foundation interested in Tulsa's Crowne Plaza Hotel
by Kirby Lee Davis
Dolan Media Newswires
OKLAHOMA CITY, OK -- The Tulsa County Sheriff’s Office is scheduled to auction the Crowne Plaza Hotel on Aug. 24.
Unlike downtown Tulsa’s other high-profile foreclosure, the Mid-Continent Tower, many real estate executives expect the 462-room Crowne Plaza to draw buyer interest.
“Given its downtown location and the ability for the conferences, as well as the rooms, I think it’s a solid buy,” said Stephen Karbelk, president of Tulsa-based National Commercial Auctioneers. “I think it’s a quality property.”
The Crowne Plaza has already drawn one interested buyer – the George Kaiser Family Foundation. But while officials confirmed the foundation has held discussions, any acquisition may still involve the sheriff sale process.
County appraisers estimated the hotel’s structure and equipment value at $15.8 million. That means opening bids must start at about $10.5 million. With court approval, the winner would be required to pay 10 percent down on Aug. 25 and the rest within 30 days.
That appraised value came in just $2 million below the county’s estimate for Mid-Continent, a 36-story landmark pulled from a July sheriff auction. Several area executives voiced concerns that office complex, which involves Tulsa’s original 16-story skyscraper, a 1984 high-rise extension and a parking garage, would draw no bids due to a lack of available information on its condition and tenant mix.
Having emerged from a $24 million renovation just two years ago under former owner Ascension Hotels, the Crowne Plaza draws less fears.
Karbelk said a hotel’s daily business makes its cash flow easier to estimate than an office building, which requires a thorough study of tenant quality, lease durations, building space limitations and other factors.
“It all depends on cash flow,” said Mike Craddock, the Tulsa market representative for Oklahoma City-based HotelBrokerOne. “And I just think people get more excited about hotels. That will be an interesting one.”
With key data unavailable on the Mid-Continent, many real estate executives doubted any interested buyers have had time to secure financing even with the auction’s delay (it has not yet been rescheduled).
“That’s absolutely the case,” said Jared Andresen, managing director of Grubb & Ellis Levy Beffort’s Tulsa office. “There just isn’t enough time with all the uncertainty.”
But Karbelk doubted that, noting how much equity capital remains off the table during this period of investment volatility.
“There’s plenty of buyers that could put 10 percent down and close in 30 days on a large transaction,” he said. “In fact, I think it’s easier on a large transaction. This kind of deal’s going to be purchased more likely by a company that’s already in the business, that has the cash and is looking for a quality product in downtown Tulsa.”
The 100 E. Second St. hotel fell into foreclosure after Donaldson, La.-based Ascension failed to meet its $20.3 million loan to Tulsa Hotel Partners LLC. The Crowne Plaza continues to operate under its court-appointed receiver while the trustee for Tulsa Hotel Partners pursues a sheriff’s sale.
Some executives speculated Tulsa’s Kaiser foundation might be able to acquire the property before it reached that sale. Under that scenario, continuing down the court-appointed path could allow Tulsa Hotel Partners to cover its bases during negotiation.
But other executives expressed doubts.
“I would be shocked if it doesn’t go through the sheriff sale,” said Mark Beffort of Oklahoma City-based Grubb & Ellis Levy Beffort.
Beffort’s firm actually markets and manages the foundation’s commercial properties, but not hotels. He said he had no knowledge of any negotiations to acquire the Crowne Plaza, basing his opinion on his understanding of the foreclosure process.
“The chance of it not going to sheriff sale is very slim, but I’m not close to the deal,” said Beffort.
He also expressed reservations about whether the Crowne Plaza would actually draw a bid.
“These times, it’s hard to determine what the course of action people take,” he said. “I would say I don’t know.”
“Sheriff sales are kind of a funny element, especially on an asset like this,” said Craddock. “It’s one of those assets that someone could come out of left field.”
