The nation's largest manager of apartments has bought two of the four Legacy complexes and plans to rename them.
Charleston, S.C.-based Greystar Real Estate Partners paid $71 million for 396-unit Legacy Crossing, 3131 SW 89, built in 2001; and 328-unit Legacy Woods, 1919 E Second St. in Edmond, built in 1999. Legacy Crossing will be renamed Avana 3131. Legacy Woods will be renamed Avana on Second.
The seller was Inland American Real Estate Trust Inc., based in Chicago, which acquired all four Legacy properties in 2008. Inland still owns Legacy at Arts Quarter, 301 N Walker Ave. downtown, built in 2007; and Legacy Corner, 777 N Air Depot Blvd. in Midwest City, built in 2004.
Mike Henderson developed the Legacy apartments between 1999 and 2007.
The portfolio sale was negotiated by multifamily brokers Andy Burnett and David Burnett of Newmark Grubb Levy Strange Beffort.
“This is another solid vote of confidence in the economy of Oklahoma City. Greystar is one of the premier operators in our industry and having them in Oklahoma City further validates our rise,” Andy Burnett said.
The brokers did not break down the purchase price by property, but $71 million for the 724 apartment homes in both Legacy Crossing and Legacy Woods comes to $98,066 per unit.
Wes Fuller, executive director of Greystar, said Oklahoma City has a lot to offer for an apartment investor-manager. He said Greystar is looking for more apartments to buy in Oklahoma.
“Greystar is very excited about making our first investment in Oklahoma City. We are attracted to the healthy economy of the city, particularly the tremendous economic benefits of the domestic energy sector and the importance of Oklahoma City within this growing industry. We intend to grow our multifamily platform in Oklahoma as an investor and as a third-party property manager,” Fuller said.
Fuller said Greystar will renovate the clubhouses, pool areas, landscaping and interior finishes of both of its acquisitions.
David Burnett said apartments are prime investments.
“Oklahoma City is in a good place right now and you're seeing that in valuations. Employment and incomes are both trending in positive directions, therefore apartment fundamentals are primed to improve,” he said. “There are more buyers than sellers in our market today. This went under contract before we brought it to market.”
Greystar's acquisitions are the latest development in Oklahoma City's ongoing apartment investment boom. Broker Mike Buhl of Norman-based Commercial Realty Resources Co. said more could be on tap.
“Today, with an unemployment rate among the lowest in the nation, Oklahoma is home to companies in aerospace, biosciences, defense, engineering, finance, health care, manufacturing and oil and gas, among others,” Buhl wrote in his recent Mid-Year Apartment Report. “Add to that a low cost of living and increasingly high quality of life, and you have a combination that's propelling the apartment industry to all-time highs.
“So has the optimism that closed out 2012 carried forward to 2013? Not only do we think it has, but we think it is gaining momentum in all facets of the market: occupancy, rental rates, sales and development.”