The Arda Building, located at 1222 10th Street in Woodward, Oklahoma, represents a significant piece of the commercial real estate landscape in Northwest Oklahoma. Positioned at the strategic "Main and Main" intersection of US Highway 270 and State Highway 34, this property functions as a multi-tenant Class B office hub. Known primarily for its historical stability and its role in housing essential government services, the Arda Building has recently gained attention as a prime "value-add" investment opportunity within the region.

What is the Arda Building in Woodward Oklahoma

The Arda Building is a three-story commercial office facility comprising approximately 14,761 square feet of rentable space. It occupies a 0.52-acre lot at a high-visibility corner in downtown Woodward. The building is characterized by its professional exterior and its functionality as a multi-suite complex capable of accommodating diverse professional organizations.

In the context of the Woodward real estate market, the Arda Building is classified as a Class B office space. This classification indicates that while it may not have the ultra-modern aesthetic of a newly constructed Class A flagship, it offers well-maintained, high-quality professional space at a price point that is accessible for local businesses and regional agencies. The building currently boasts an occupancy rate of approximately 89.2%, demonstrating strong historical demand for its location and services.

Strategic Location and Traffic Connectivity

One of the most defining characteristics of the Arda Building is its geographic placement. Woodward, Oklahoma, serves as a regional trade hub for a vast area covering Northwest Oklahoma, the Texas Panhandle, and parts of Kansas. Within this hub, the Arda Building sits at the hard corner of 10th Street (Oklahoma Avenue) and State Highway 34 (9th Street).

The Highway 270 Corridor

US Highway 270 is the primary artery connecting the Oklahoma City metropolitan area to the state’s northwest quadrant. As cars travel from the state capital toward the panhandle, they pass directly in front of the Arda Building. The combined traffic count at this intersection is estimated at nearly 40,000 cars per day (39,837 CPD), making it one of the most trafficked commercial points in the city.

Regional Accessibility

The building's proximity to State Highway 34 is equally critical. This highway runs 188 miles from the Texas border in the south to the Kansas border in the north. For a regional service provider or a government agency, being located on this axis ensures that clients and employees from surrounding counties can easily access the facility without navigating complex side streets.

Analysis of the Tenant Profile and Stability

The Arda Building is notably anchored by government-backed tenants, specifically the State of Oklahoma. This tenant base provides a level of creditworthiness and stability that is often difficult to find in rural or secondary commercial markets.

State of Oklahoma Department of Mental Health

The largest tenant in the building is the State of Oklahoma Department of Mental Health and Substance Abuse Services. Occupying portions of the first floor and the entirety of the second and third floors (approximately 10,159 square feet), this agency provides essential community services. Their presence offers a "recession-proof" element to the building’s income stream, as government services typically remain funded and operational regardless of fluctuations in the private sector economy.

Western Oklahoma Workforce Development Board

Another key tenant is the Western Oklahoma Workforce Development Board, which occupies approximately 1,822 square feet on the first floor. This organization plays a vital role in Woodward’s local economy by connecting job seekers with employers, particularly in the energy and agricultural sectors.

Private Sector Presence

In addition to government agencies, the building houses private enterprises such as Rick Phillips Insurance LLC. This mix of public and private tenancy creates a balanced professional environment. The current rent roll reflects a gross lease structure, where the landlord is responsible for most operating expenses, a common practice in the Woodward office market.

Understanding the Value-Add Investment Potential

The Arda Building is frequently marketed as a "value-add" opportunity. In real estate terms, this means the property has intrinsic value that can be significantly increased through strategic management, minor physical improvements, or lease renegotiations.

Below-Market Rent Analysis

A detailed look at the current financials reveals that several leases are currently priced below the prevailing market rate for the region. For instance, some suites are leased at rates ranging from $6.41 to $11.69 per square foot. In a market where comparable Class B office space often commands higher premiums, a new owner has the opportunity to increase the Net Operating Income (NOI) by bringing these leases up to market standards upon renewal.

Short-Term Lease Flexibility

Many of the current leases in the Arda Building are either month-to-month or have relatively short terms remaining (e.g., expiring in mid-2025). While short-term leases can be seen as a risk, they are the cornerstone of a value-add strategy. They allow an investor to reposition the property quickly, renegotiate terms, or perform suite upgrades to attract higher-paying tenants without waiting a decade for a lease to expire.

Capital Expenditure and Modernization

With an asking price of $575,000, the acquisition cost per square foot is approximately $38.95. This is significantly below the cost of new construction in today’s economic environment. An investor could allocate capital toward modernizing common areas, improving energy efficiency in the HVAC systems, or enhancing the building's digital infrastructure. Such improvements would justify higher rents and could potentially lower long-term utility costs, which currently represent a substantial portion of the building's $83,936 in annual operating expenses.

The Economic Context of Woodward Oklahoma

To understand the value of the Arda Building, one must understand the economy of Woodward. The city is not merely a small town; it is the economic engine of Northwest Oklahoma.

The Energy Sector: Oil, Gas, and Wind

Woodward has a storied history in the energy sector. It remains a central hub for oil and gas extraction services, but in recent years, it has transformed into a leader in renewable energy. The surrounding plains are home to massive wind farms, and Woodward serves as the administrative and maintenance center for these projects. This diversification from traditional fossil fuels to wind energy has provided the local economy with a resilience that many other energy-dependent towns lack.

A Regional Retail and Service Hub

Woodward serves a 30-mile radius population of over 25,000 people. Within the immediate 10-mile radius of the Arda Building, the median household income is approximately $65,326, with an average household income approaching $90,000. These demographics support a robust retail environment. The Arda Building is surrounded by national brands such as Walmart Supercenter, Walgreens, AutoZone, and multiple hotel chains like Holiday Inn and Hampton Inn. This high density of commercial activity ensures a steady flow of potential clients for the professional offices within the Arda Building.

Physical Specifications and Building Maintenance

Effective property management requires a deep dive into the physical realities of the asset. The Arda Building sits on two parcels (APN 0001-00-081-011 and 0001-00-082-007) totaling roughly 22,651 square feet of land.

Parking and Access

Unlike many downtown buildings that suffer from a lack of parking, the Arda Building features a dedicated parking lot with direct access to State Highway 34. This is a critical feature for government agencies that serve the public, as it ensures ADA accessibility and convenience for visitors.

Operational Costs and Utilities

Based on 2023 actuals, the building’s operating expenses include significant line items for cleaning services ($20,612) and electric utilities ($25,327). The roof is currently under warranty through 2027, which provides a near-term safeguard against one of the most expensive capital repairs a building of this size can face. These figures suggest that the building is actively maintained but also indicate areas where energy-efficient upgrades could potentially improve the bottom line.

Investing in Woodward: Risks and Rewards

Like any commercial real estate venture, the Arda Building comes with specific considerations.

The Upside (Rewards)

  • High Cap Rate: At an 8.73% cap rate, the building offers a strong return on investment compared to urban markets like Oklahoma City or Tulsa, where cap rates for similar assets might be significantly lower.
  • Debt-Free Delivery: The property is typically offered free and clear of existing debt, allowing a buyer to secure new financing at current market rates or potentially leverage the asset for other ventures.
  • Government Security: Having the State of Oklahoma as a primary tenant provides a "credit" quality that is highly desirable for lenders.

The Challenges (Risks)

  • Tenant Concentration: A large portion of the building is occupied by a single government entity. While this is a strength, the potential departure of such a tenant would create a large vacancy that might take time to fill in a smaller market.
  • Gross Lease Structure: Under the current gross leases, the landlord bears the risk of rising utility costs or property taxes. Transitioning these to "Modified Gross" or "NNN" structures in future renewals could mitigate this risk.

How to Modernize the Arda Building

For a new owner, the path to increasing the Arda Building’s value lies in modernization. Based on local contractor availability in Woodward, such as those specializing in commercial remodeling and energy systems, several steps could be taken:

  1. Energy Audit: Given the $25,000+ annual electricity bill, installing LED lighting and smart thermostats throughout the three floors could yield immediate savings.
  2. Lobby Refresh: As a Class B building, the first impression is vital. Modernizing the entry lobby at 1222 10th Street would help attract higher-tier private sector tenants like law firms or accounting practices.
  3. Digital Infrastructure: Upgrading the building’s fiber-optic connectivity would make it more attractive to modern professional services that require high-speed data for remote collaboration.

FAQ: Common Questions About the Arda Building

Where is the Arda Building located?

The Arda Building is located at 1222 10th Street, Woodward, OK 73801. It is situated at the hard corner of US Highway 270 (Oklahoma Avenue) and State Highway 34 (9th Street).

What is the square footage of the Arda Building?

The total rentable area of the building is approximately 14,761 square feet, spread across three floors.

Who are the main tenants in the Arda Building?

The building is primarily occupied by the State of Oklahoma (Department of Mental Health and Substance Abuse Services) and the Western Oklahoma Workforce Development Board, along with private insurance services.

Is the Arda Building a good investment?

With an 8.73% cap rate and an occupancy rate near 90%, it is considered a strong value-add investment. Its value lies in its below-market rents and government-backed tenancy.

What kind of office space is the Arda Building?

It is a Class B multi-tenant office building. This means it provides functional, professional office space suitable for government and business use at competitive rates.

What is the traffic count near the Arda Building?

The intersection of Hwy 270 and Hwy 34 sees approximately 39,837 cars per day, providing the building with exceptional visibility.

Summary of the Arda Building’s Role in Woodward

The Arda Building remains a cornerstone of the professional infrastructure in Woodward, Oklahoma. By providing a home for essential state services and local businesses, it serves a vital civic function. For the real estate community, it represents a classic example of a "value-add" asset: a property with a strong location and reliable tenants that still has room for financial growth through modern management and strategic upgrades.

As Woodward continues to evolve as a hub for both traditional and renewable energy, well-located office assets like the Arda Building are likely to remain in high demand. Whether viewed as a stable source of cash flow from government leases or a project for an investor looking to capitalize on rising regional rents, 1222 10th Street stands as a landmark of commercial opportunity in Northwest Oklahoma.