Chesapeake Energy Corp.'s effort to sell off assets is hitting closer to home.
In its Mid-Year Retail Market Summary, Price Edwards & Co. said “Chesapeake is marketing Nichols Hills Plaza for sale, perhaps to be closed by year-end. Classen Curve will most likely follow.”
Price Edwards declined further comment.
In a regulatory filing earlier this month, Chesapeake did not name Nichols Hills Plaza or Classen Curve, but said the company has “determined we would sell certain of our buildings (other than our core campus) in the Oklahoma City area.
“These assets are being actively marketed, and we believe it is probably that these assets will be sold over the next 12 months.”
Chesapeake spokesman Jim Gipson declined to comment Wednesday.
Chesapeake bought Nichols Hills Plaza in 2006 for $27.5 million, or $215 per square foot, a price retail property specialist Mary Grace of Grace Commercial Real Estate described at the time as “phenomenal.”
Merchants at the shopping center in 2008 told The Oklahoman they were told plans for rebuilding the plaza included a mix of more offices, housing and a hotel.
Chesapeake's plans for a company-owned grocery store in Nichols Hills Plaza have been scrapped and much of the southeast end of the shopping center where the grocery store was supposed to go remains empty.
The company initially had promised Nichols Hills that the store would be open by fall 2012
After a dispute with dissident shareholders led by Southeastern Asset Management and billionaire corporate raider Carl Icahn, Chesapeake and its new CEO Doug Lawler have pledged to reduce overhead costs. For example, Chesapeake said in January it has cut its annual budget for charitable, trade association and political expenses by about 30 percent in 2013, 40 percent in 2014 and 50 percent in 2015.
Chesapeake in recent years has spent more than $170 million buying up office properties outside of its core campus.
In recent months, Chesapeake has been selling back some of the buildings, often at a large loss.
In a regulatory filing issued earlier this month, Chesapeake said that in the second quarter it recorded an accounting loss of $134 million for the properties it plans to sell over the next year because the expected sales price is less than the value on its books.