SandRidge wants to sell its headquarters, other sites

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Date: May 6, 2015; Section: Business; Page: 1C
SandRidge wants to sell its headquarters,
other sites
OKC ENERGY COMPANY WANTS TO LEASE BACK ITS 30-STORY BUILDING
AND PARKING GARAGE
BY STEVE LACKMEYER
Business Writer [email protected]
SANDRIDGE Energy is looking to sell its downtown corporate headquarters as part of a deal that will include a
long-term lease back of the company’s 30-story tower and 862-space garage.
SandRidge officials tapped NGKF Capital Markets to oversee the transaction, saying the move follows a
nationwide trend of corporations unlocking equity tied up in real estate to redeploy into operations.
Mark Beffort, CEO of NGKF’s office in Oklahoma City, noted all of the properties are considered Class A-plus,
involving all new space in a market that enjoys a low 1.7 percent Class A vacancy rate.
The portfolio, which will be listed early next week, includes the 30-story, 500,000-squarefoot SandRidge Tower;
the 10-story, 85,000-squarefoot Braniff Building; the new seven-story, 84,000-square-foot Parkside Building; and
the 862-space Broadway Kerr Parking Facility. Both the tower and the Braniff Building were extensively renovated
in 2013.
Beffort said the bids will be sought for the entire portfolio, though bids for individual pieces of the property also
will be considered.
The sale will not include two surface parking lots along the 600 block of N Broadway. SandRidge hopes to have
a sale concluded by late summer.
Only the Parkside Building, which is set to open next month, is unoccupied. The Braniff Building is fully leased,
with occupants including the Crowe-Dunlevy law firm, Osage Energy, Kitchen No. 324, and the Braniff Salon.
SandRidge occupies the tower and its attached 200-space garage, and will seek a long-term lease as part of any
sale, Beffort said.
“The Oklahoma City downtown area has been undergoing an extensive revitalization program, which has
transformed the downtown area into a world-class Central Business District ” Beffort said. “SandRidge has played
an integral part in downtown’s renaissance and will continue to be a vital part of the city’s growth ”
Jeff Wilson, spokesman for SandRidge, said the 575-employee workforce is consolidated in the 30-story tower.
“This is about us making sure we continue to focus on our core area – drilling and completing wells” Wilson
said. “We’re looking to make sure we can monetize the asset ”
The marketing will be done through NGKF’s national operation with investor interest expected from across the
country. Oklahoma City is seen as a fastgrowing market, with an unemployment rate that fell to 3.3. percent in
March to tie with Austin, Texas, for the lowest rate in the nation among large metro areas. Beffort said demand for
downtown Class A office space continues to increase and rents are expected to continue to rise, creating an upside
for any new ownership.
“The portfolio presents a unique opportunity for an investor to acquire an entire office campus in the heart of
the city” said Kenneth Zakin, senior managing director of NGKF Capital Markets. “The investment provides the
security of a long-term net leased office tower and an additional fully leased multitenanted building, as well as the
opportunity to create value through the Parkside Building ”
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5/6/2015
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The Parkside Building overlooking a revamped Kerr Park, the Braniff Building and the 30-story SandRidge
Energy headquarters are being put up for sale as part of a deal that would include the company staying in the
tower with a long-term lease. PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN
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