OU bought Promenade Mall?

[Jonette2]

I read on the HOOVER neighborhood Facebook page, Id like to know if there's any meat to that?

[Conan71]

I read on the HOOVER neighborhood Facebook page, Id like to know if there's any meat to that?

That would be an interesting development as we have speculated it would be a logical expansion option for them some day.  

As of now, according to assessor records, The Promenade is broken out into four parcels that I see with an FMV around $43 million and it pays almost $700,000 per year in property taxes.  The Schusterman Center has an FMV of $89 million and they $85 a year in property taxes.  Yes, as in the $85 in my wallet would pay their property taxes for the coming year.

While it might be aesthetically-pleasing to have the campus eventually expand across the street given the current state of brick-and-mortar retail, economically-speaking. this would be a bad deal for the City of Tulsa if it is converted to campus space.  It would represent a loss of the previously-mentioned $700K per year in property tax plus the loss of a concentrated sales tax collection point.  The loss to the city and county would reach into the low millions, would be my guess.  Would that be out-stripped by allowing them to serve more college students who might move here from elsewhere and high paying instructional jobs?  

Interesting discussion to sift through.

[erfalf]

Seems like a pretty expensive deal for OU (the state that is). I'm not familiar with the expansion needs of that particular facility, but I do know they have 8 acres or so on the south side of their property that would be available for any additions as well as a 10 acre "front yard". I just can't imagine any possible growth necessitating an entire mall and it's roughly 30 acre footprint. Not to mention the millions that would be necessary to convert it into their needs. I understand there is this desire to have nice shiny things like they have at Schusterman, but this seems like a terrible idea on their part if true. But maybe I don't understand University economics. They do seem to go against the grain that's for sure.

I left OSU in '06, just prior to the great recession. I go back now and barely recognize parts of campus. And that didn't all happen in the last 2 or 3 years either.

[Conan71]

Seems like a pretty expensive deal for OU (the state that is). I'm not familiar with the expansion needs of that particular facility, but I do know they have 8 acres or so on the south side of their property that would be available for any additions as well as a 10 acre "front yard". I just can't imagine any possible growth necessitating an entire mall and it's roughly 30 acre footprint. Not to mention the millions that would be necessary to convert it into their needs. I understand there is this desire to have nice shiny things like they have at Schusterman, but this seems like a terrible idea on their part if true. But maybe I don't understand University economics. They do seem to go against the grain that's for sure.

I left OSU in '06, just prior to the great recession. I go back now and barely recognize parts of campus. And that didn't all happen in the last 2 or 3 years either.

30 acres for the Promenade?  Don't you mean about 2 or 3 if that?

[heironymouspasparagus]

30 acres for the Promenade?  Don't you mean about 2 or 3 if that?

Property is "about" 1450 ft x 1200 ft.  Comes out "close-ish" to 39 acres minus some for that little jog north on the southeast corner.


Edit;

Looks like their existing place is much larger.  Maybe twice.

[cannon_fodder]

Hoover Neighbors is a closed group. 
https://www.facebook.com/groups/155970811109912/

I can't find any other information on OU or anyone else buying Promenade Mall or a parcel thereof. The Tulsa County Assessor indicates the parcels are owned by:
PROMENADE INVESTORS
TULSA REALTY 126 LLC
MAY DEPARTMENT STORES CO THE ATT PROPERTY TAX DEPT
DILLARD DEPARTMENT STORES INC C/O PROPERTY TAX DEPT
http://www.assessor.tulsacounty.org/assessor-map-interactive.php

When I tried to cross referenced them with Tulsa County land records (County Clerk) I didn't find anything that looked like a recent transfer to anything OU related.
https://tulsaok-recorder.tylertech.com/recorder/web/splash.jsp


This was just a real quick search and may have missed something, and not having the paperwork completed doesn't mean it isn't in the works.  But I can't find anything public that indicates this is happening.  Hook us up with some information!

[erfalf]

Property is "about" 1450 ft x 1200 ft.  Comes out "close-ish" to 39 acres minus some for that little jog north on the southeast corner.


Edit;

Looks like their existing place is much larger.  Maybe twice.

I ball parked. I didn't know how much of the out parcels would actually be included if there was a sale.

[heironymouspasparagus]

I ball parked. I didn't know how much of the out parcels would actually be included if there was a sale.

Hard to say with so much of it being parking, too.

Yours is very close I think - I was really addressing conan's comment about 3 acres...

[Conan71]

Property is "about" 1450 ft x 1200 ft.  Comes out "close-ish" to 39 acres minus some for that little jog north on the southeast corner.


Edit;

Looks like their existing place is much larger.  Maybe twice.

Damn, I had no idea that parcel was that large.

[BKDotCom]

Calculating parcel size

[realst8]

This has been a long standing rumor that seems to be nothing more than rumor. Word on the street was Promenade was not renewing any leases and was just doing month-to-month occupancy with tenants as their leases rolled because OU had the property under contract. While an offering memorandum has been circulated for the mall there seems to be no truth to the OU purchase. If OU was actually interested in buying the mall it would only make sense they would want the Macy's parcel also given the low price per pound on the Macy's piece (under $12/sf) and I'm told OU does not have the budget to take down the Macy's parcel. If OU can't take down the +/-180,000s.f. Macy's building at under $2mm, I doubt they could take down the +/- $25mm Promenade. I believe OU would like to have expansion ability but I do not think they have it within their budget at the present time. On a side note, a non-profit did have the former Mervyns / current Sky Fitness building under contract. It is my understanding the non-profit was planning on using the vacant remainder of the building for administrative office and medical use - I do not know whether or not that deal is still under contract but it was tied up about a month ago. Again, I could be wrong about all of this info but it came through what I would consider to be extremely reliable sources within the commercial real estate brokerage community.