State Farm’s operations center in Tulsa, which has been here since December 2004, was recently sold to Lone Star, an Austin-based investment company, as part of a volume purchase of 23 State Farm facilities in 16 states. The company then sold the 288,000 square foot building for $45.1 million to Lone Star Funds, which specializes in purchasing real estate assets from entities looking to raise capital or reduce debt. Tax records have indicated that the property has an assessed value of $18 million. JDM partners of Phoenix bought the building from Lone Star Funds for $46.5 million. According to Jacksonville Daily Record, JDM also purchased a State Farm headquarters in Jacksonville for $46 million.
The spokesman for State Farm, Jim Camoriano, stated that the insurance company planned to sell the building and then lease it back after 15 years. To sustain the company at the site for the next 25 years, they have two 5-year options to renew. The sale lease-back option has encouraged the company to look at real estate holdings as a possible source of capital. It has also allowed them to monetize their properties, acquire capital from real estate, and impart it to their operation. The sale lease-back gives the company a chance to continue their operations.
The three-story building, which was built in 1989 is situated on 40.82 acres in a commercial district and consists of several general departments including human resources, public affairs, and administrative services. Approximately 930 people are employed at the center. Camariano said that State Farm will continue to hire the right people in different operation centers to meet the changing needs and expectations of their customers and to continue their 91 years of service.
Tulsa Real Estate
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