A couple of pretty significant developments hit the multifamily sector this week, one local, one national, both connected at 12205 S Western Ave. — the address of brand-new Traditions at Westmoore.
The paint is barely dry at Traditions at Westmoore, a 160-unit, 12-floor plan apartment complex. The $13 million property was developed by ERC Cos. of Barling, Ark., and it’s already for sale. The asking price: $17.75 million.
Seems steep to some, since apartment values are based on income and the property isn’t nearly full yet, or even stable (90 percent). Broker Aaron Hargrove, who has the listing, said the offering assumes stable occupancy by August.
Another broker, not involved with the offering, was doubtful partly because of another new complex under way nearby, District on 119.
Traditions at Westmoore is leasing and District on 119 is preleasing — that’s some 400 new units less than a half mile apart. The uninvolved broker guessed it would take nine months or more for Traditions to reach stability. But he said he would be glad to be proven wrong.
Hargrove, a partner and director with Hendricks-Berkadia’s Tulsa office, is sure he will be. That part of south Oklahoma City is hot for distinctive apartment living, he said, especially with housing demand in Moore and the Moore school district resulting from the May 20, 2013, tornado.
Everyone finds a way to spin location positively, but property manager Riverstone Residential Group, based in Dallas, has a lot to capitalize on at Traditions at Westmoore, which shares a property line with Westmoore High School, 12613 S Western. Riverstone also used a word not often seen even in the most gushing press releases: “fanatical.”
“Riverstone Residential Group has been selected by the ERC Companies to be fanatical of the needs of each and every client,” Riverstone said.
And, suddenly Traditions at Westmoore has new management. Charleston, S.C.-based Greystar Real Estate Partners bought Riverstone Residential this week from London-based CAS Capital Limited. The acquisition gives Greystar more than 385,000 apartment units under management — including hundreds in Oklahoma.
Riverstone manages CrownRidge of North Edmond, 2500 Thomas Road; Gateway of Edmond, 14140 Broadway Extension; ChapelRidge of Yukon, 11501 SW 15; ChapelRidge of Tinker, 5707 SE 48; ChapelRidge of Claremore; Villas at Bailey Ranch in Owasso; and Pine Terrace and Summit Springs in Lawton.
Greystar first entered Oklahoma City last August as a buyer — a big buyer. Greystar bought all four former Legacy apartment complexes from Inland American Real Estate Trust Inc., now known as Avana Arts District, 301 N Walker downtown; Avana Midwest, 777 N Air Depot Blvd. in Midwest City; Avana 3131, 3131 SW 89; and Avana on Second, 1919 E Second St. in Edmond. The portfolio purchase set a new trend for pricing newer multifamily properties here — especially the $161,000-per-unit price for Avana Arts District.
Out-of-state demand for multifamily investment properties remains strong, which has to be what ERC is banking on with an aggressive asking price for Traditions at Westmoore — as well as renter demand in south Oklahoma City-Moore. Greystar helped set the pricing bar.
Greystar, no stranger to people in the multifamily business, is still a new neighbor here. The Riverstone purchase will lend more familiarity to the company, which was founded and is led by Oklahoma native Bob Faith.
“Combining forces makes us even stronger, especially in local markets where we are bringing together some of the most talented and experienced multifamily professionals in the industry,” said Faith, chairman and CEO. “Our local teams are well resourced, and will now harness the power of our combined technology and service platforms to further expand our service offerings to our clients, partners and residents.”