Gardner Tanenbaum Group's offering of the Lincoln at Central Park apartment complex generated considerable interest from would-be buyers.
The sale of the property, its $77 million price and the promise of more high-dollar transactions persuaded Apartment Realty Advisors, an Atlanta-based firm with an office in Dallas, to expand to Oklahoma City.
The transaction was handled by ARA principal Brian O'Boyle and brokers Bart Wickard and Brandon Lamb. Lamb is now leading ARA's new office in Oklahoma City.
The offering generated significant interest “despite the challenges of the transaction size and complexity of assuming an agency (Freddie Mac) loan for one phase and adding a new loan for another,” Wickard said. “Investor types ranged from REITs (real estate investment trusts) to private equity to local investors.”
At $109,000 per individual apartment, the Lincoln at Central Park fetched a “great price,” said Mike Buhl, owner of apartment brokerage Commercial Realty Resources Co. in Norman.
“The location where he built it was a little bit questionable. He clearly has overcome that by the operation of it. That ultimately is obvious when you sell it for that kind of price. I don't know what he built them for, but it was a lot less than that,” he said.
Buhl said he would have guessed the property would sell for $85,000 to $90,000 per unit.
The Lincoln at Central Park would have brought an even shinier price on either coast, as much as $20,000 more per unit, said William T. Forrest, principal and first vice president of CB Richard Ellis-Oklahoma. That's one reason Oklahoma City property is so attractive to investment firms with cash to put with 4-percent credit to get good returns for their investors, Forrest said.
Gardner-Tanenbaum's deal eclipsed a comparable per-unit price in a transaction Forrest and brokers David Forrest and Eva Wills handled last Friday. The 360-unit Montclair Parc Apartments, built in 1999 at 10900 S Pennsylvania Ave., sold to SIR Montclair Park LLC, for $35.75 million, or $99,300 per unit.
“Oklahoma City looks really good from an economic perspective,” Forrest said.
Lamb said ARA expects Oklahoma to stay on national apartment investors' radar.
“The economic fundamentals in Oklahoma City and Tulsa are stronger than ever, and investor demand for core multifamily assets in these markets is at an all-time high,” Lamb said. “This level of demand is driving prices to levels we've never seen before in Oklahoma and the fact that the sale of the Lincoln at Central Park represented the largest single-asset, garden-style apartment sale in the state's history is a testament to that.”