First National Center foreclosure advances

 
By Steve Lackmeyer | Published: June 23, 2010    Comment on this article Leave a comment

Downtown Oklahoma City's landmark First National Center is facing a possible sheriff's sale as lenders try to foreclose on the California owners who bought it for $21 million four years ago.

photo - Decorative detail adorns the Park Avenue north side of First National Tower in downtown Oklahoma City.
Decorative detail adorns the Park Avenue north side of First National Tower in downtown Oklahoma City.

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Timeline
1931: First National Bank celebrates the opening of its new home, a 32-story tower at 120 N Robinson.

1956: First National adds a 14-story annex immediately east of the original tower.

1974: First National adds a second 14-story building facing Broadway.

1986: First National Bank fails and operations are taken over by First Interstate Bank. The office complex and adjoining Main Street Parking Garage end up in the ownership of 36 financial institutions following the bank's failure.

1993: A series of bank mergers leads to Boatman's Bank as the last anchor tenant in the tower's Great Banking Hall. The bank moves across the street to Leadership Square.

1994: Local investors John Kennedy and Michael Samis buy First National Center for $827,000 and the adjoining Main Street Parking Garage for $3.2 million.

1998: Kennedy and Samis end discussions with city to use tax credits for a renovation; they give the office complex to Feed The Children and retain ownership of the adjoining Main Street Parking Garage.

1999: Joel Hoffman and Mitchell Wolff buy First National Center for $5 million from Feed The Children. The pair promise to raise occupancy and renovate the property. The pair begin asbestos removal from the long-vacant east tower, but fail to deliver on many of the other promised improvements.

2006: Partnerships led by California investor Aaron Yashouafar buy First National Center for $21 million.

2009: Capmark Financial Group, one of the nation's largest commercial lenders and holder of the First National mortgage, files for bankruptcy. First National Center manager Emily Dobson-Timm reports the bankruptcy will have no effect on the property and that all loans are current.

June 18, 2010: Capmark Bank petitions for foreclosure on First National Center.

The filing by Capmark Bank in Oklahoma County District Court alleges the partnerships that bought the building — First National Building I LLC and First National Building II LLC — are in default of notes totaling $19,927,721, plus accrued interest totaling $159,853 as of June 9. The court filing seeks reimbursement of interest at a rate of $6,940 per day and related legal costs and expenses.

The lender's attorney, Rob Robertson, said the full amount of the matured note was due June 9. He did not return calls to The Oklahoman on Tuesday.

A statement released by the building's owners argues the lender has violated an agreement to allow the loan to be extended.

"The owners of Oklahoma City's First National Center have consistently performed under their loan with Capmark and met all conditions which entitle the owners to an extension of their current financing arrangement,” the owners said in a statement released Tuesday afternoon.

"Notwithstanding the owner's commitment to Oklahoma City however, the lender has refused to honor the contractually required loan extension.

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