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$50 million+ property sale near Tinker Air Force Base sends developer Tanenbaum soaring


It's like Richard Tanenbaum is playing multimillion-dollar Monopoly, but with aerospace and industrial properties rather than houses and hotels.

His latest move was to part with more of the properties he started developing 20 years ago around Tinker Air Force Base.

Tanenbaum, who heads Gardener Tanenbaum Holdings, just sold three more aerospace properties in a $50.36 million deal to a repeat West Coast investor. Mark Beffort, CEO of Newmark Levy Strange Beffort — and a frequent investment and development partner of Tanenbaum's — and Brett Price, the firm's managing director, negotiated the sale.

The transaction has no immediate effect on the tenants — defense contractors Northrop Grumman, L3 Harris, and LCI — other than giving them a new landlord.

That's Tenmark Holdings, led by Michael Schau of Los Angeles, who has been investing in Oklahoma property for 15 years and is one of the largest industrial and aerospace owners in the state. Just more than a year ago, Tenmark, which has offices in L.A., here and Dallas, acquired the Boeing Co. campus adjacent to Tinker, also developed by Tanenbaum, for $124.7 million.

“I have a continued relationship with this buyer and have worked with him now on multiple deals,” Tanenbaum said in a written statement. "This buyer believes in the future of Oklahoma City, Tinker Air Force Base, and aerospace's potential for decades to come. And, from my perspective, I did REAL WELL."

Tanenbaum could not be reached Friday for further comment.

Schau said, "We're thrilled with the recent acquisition and proud to play a small part in OKC's explosive aerospace growth. Our continued investment in OKC and surrounding areas are evidence of our long-term optimism in the market."

Price said the latest sale "further cements the robust role that aerospace plays in the Oklahoma City economy. Investors are drawn to these properties based on a strong local economy and the ongoing commitment of aerospace companies to invest and expand in the OKC metro.”

The portfolio of properties totals 303,964 square feet. The price came to $165.70 per square foot. Newmark did not break the price down by individual building.

Sold were:

• 6700 SE 59, built in 2001. Tenant: L3 Harris, 38,681 square feet.

• 6400 SE 59, built in 2002. Tenant: Northrop Grumman, 174,145 square feet.

• 6401 and 6421 S Air Depot Blvd., built in 2003. Tenants: Northrop Grumman and LCI, 91,138 square feet.

Tanenbaum offered the properties for sale among several others in different portfolio configurations in March 2008. It was awful timing. Investment capital had been flowing into Oklahoma the few years before but had dried up. By the next fall, tight credit had dissipated into no credit. The stock market crashed in September. Investment stopped cold. He offered them for sale again in 2010, and some did eventually.

Tanenbaum's next big project, in partnership with Beffort, is a multimillion-dollar mixed-use project "focused on collaborative innovation" in aviation, aerospace, bioscience and energy research and development in Oklahoma City's Innovation District. Gardner Tanenbaum and Beffort's Robinson Park Investments announced the high-density, 400,000-square-foot, two-building project at NE 8 and Interstate 35 just before last Christmas.

Tanenbaum most recent investment, announced in January, was his $106.5 million portfolio purchase of 42 buildings leased by the federal government. Tanenbaum Equity Partners, a subsidiary of Gardner Tanenbaum, bought the properties from CoreCivic Inc. in Brentwood, Tennessee — 573,000 square feet leased under the federal General Services Administration to agencies including the Social Security Administration, Department of Homeland Security, and Veterans Administration.

Real Estate Editor Richard Mize edits The Oklahoman’s Real Estate section, and covers housing, construction, commercial real estate, and related topics for the newspaper and Contact him at Please support his work and that of other Oklahoman journalists by purchasing a subscription at today.

Related Photos
<strong>L3 Harris, 6700 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT]</strong>


<figure><img src="//" alt="Photo - L3 Harris, 6700 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] " title=" L3 Harris, 6700 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] "><figcaption> L3 Harris, 6700 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] </figcaption></figure><figure><img src="//" alt="Photo - Northrop Grumman, 6400 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] " title=" Northrop Grumman, 6400 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] "><figcaption> Northrop Grumman, 6400 SE 59. [PROVIDED/NEWMARK LEVY STRANGE BEFFORT] </figcaption></figure>
Richard Mize

Real estate editor Richard Mize has edited The Oklahoman's weekly residential real estate section and covered housing, commercial real estate, construction, development, finance and related business since 1999. From 1989 to 1999, he worked... Read more ›