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Baker Hughes has sold its once-celebrated Super Center in north Oklahoma City to a repeat investor who has spent millions and millions of dollars buying up industrial property here.
Tenmark Holdings, led by Michael Schau, of Los Angeles, paid $43 million for three industrial buildings totaling 388,760 square feet and a 92,000-square-foot office building, according to Price Edwards & Co., which represented Baker Hughes in negotiations.
Schau is one of the largest holders of industrial and aerospace property in the state. He was represented by brokers Brett Price, Kris Davis and Karley Harper, with Newmark Robinson Park.
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Tenmark Holdings bought the property at a good time, maybe the best time ever to own industrial property, which is breaking records this year thanks largely due to COVID-19 keeping people home and going online to shop.
“Oklahoma City has seen much of this national success locally,” NAI Sullivan broker Zac McQueen wrote in a recent report. “Vacancy rates continue to be extremely low, and construction is finally starting to respond with the largest purely speculative Class A industrial development ever to be constructed in the city.
“Many hope and expect this will bring even more jobs and growth to the city’s national distribution footprint.”
Baker Hughes sells property and leases back manufacturing and office space
Baker Hughes is now a tenant at its former property at 12701 N Santa Fe Ave. at the Kilpatrick Turnpike, leasing back part of the office building and two of the industrial buildings, Price Edwards said. Baker Hughes was represented by Price Edwards brokers Tre Dupuy, Mark Patton, Cody Beat and Ian Self.
“Baker Hughes elected to consolidate into one of the manufacturing facilities (and) consolidated their office space down to a single floor of the office building,” Dupuy said. Baker Hughes is “committed to maintaining a large presence at this location and OKC.”
A spokesman for Baker Hughes could not be reached.
The sale closed two weeks after Consumer Cellular announced it was leasing 65,000 square feet of the office building for a customer service center and hiring about 300 people, eventually up to 500.
Dupuy said it was Tenmark that lined up Consumer Cellular as a tenant.
“The abundance of parking allowed the space to be marketed towards a higher-density user like Consumer Cellular and the space came fully furnished, allowing for a plug-and-play opportunity to meet the short deadline required by Consumer Cellular,” he said.
Los Angeles-based Tenmark Holdings has spent millions investing in OKC
The Consumer Cellular lease and Baker Hughes leaseback demonstrate the potential of the property for Tenmark Holdings, which has spent at least $232 million investing in real estate here the past two years: $124,735,000 for buildings used by Boeing Co., $50,360,000 for aerospace properties near Tinker Air Force Base, and $14,750,000 for Hudiburg Circle, a business park in west Oklahoma City.
“We’re thrilled to have Consumer Cellular and Baker Hughes as two tenants in this flagship project and look forward to filling the remaining space,” Schau said. “We’ve had a lot of interest even prior to close and remain optimistic about the future of both this project and the broader OKC metro.”
Consumer Cellular Chairman and CEO Ed Evans said:
“We knew the building was being sold and we are happy with the deal that was negotiated. Consumer Cellular looks forward to being a top employer and fabric of the Oklahoma City community for many years to come.”
Bad timing for Baker Hughes to build; good timing for Tenmark to buy
Houston-based Baker Hughes, an oilfield services and energy technology company, announced plans for its high-tech manufacturing center at an unfortunate time: April 2014, before the end of the late oil boom.
It never got a chance to fully use its property, which was vaunted as the only site in the U.S. for Baker Hughes to use robotics in the manufacturing of downhole drilling motors for oil and gas companies.
By the time it opened, in April 2019, the oil business was stumbling. A year later, in April 2020, with the energy sector reeling because of the coronavirus-induced collapse in global demand for energy, Baker Hughes was scaling back and laying off workers.
Senior Business Writer Richard Mize has covered housing, construction, commercial real estate, and related topics for the newspaper and Oklahoman.com since 1999. Contact him at firstname.lastname@example.org.