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Oklahoma City apartment sale prices go sky high in 2013

by Richard Mize Modified: January 25, 2014 at 10:00 am •  Published: January 25, 2014
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Apartment sales broke records here last year — again.

The standout was Greystar Real Estate Partners' purchase of all four former Legacy apartment complexes from Inland American Real Estate Trust Inc. for a combined $151.6 million.

Greystar, based in Charleston, S.C., and founded and led by Oklahoma native Bob Faith, paid $48.75 million, about $161,000 per unit, for 303-unit Legacy at Arts Quarter, built downtown at 301 N Walker Ave. in 2007. The price per unit was a record across all categories and classes of apartments. The complex is now called Avana Arts District.

Greystar also paid $31.7 million (about $106,000 per unit) for 298-unit Legacy Corner, 777 N Air Depot Blvd. in Midwest City; $38.53 million (about $97,000 per unit) for 396-unit Legacy Crossing, 3131 SW 89; and $32.6 million (about $99,000 per unit) for 328-unit Legacy Woods, 1919 E Second St. in Edmond, and changed their names.

That put the average price per unit for apartments built since 1995 at just more than $112,000 per unit, according to CB Richard Ellis-Oklahoma's year-end multifamily property report.

At the other end of the market, 1970s complexes with more than 50 apartments sold for an average of $22,447 per unit — ranging from $7,729 to $42,669, brokers William T Forrest and Eva M. Wills noted in the report.

Oklahoma City's strong economy continued investor interest, significant purchase and renovation — or demolition — of lower-end properties and the May tornadoes all combined to bolster the market for sales, keep occupancies stable even with new apartments being constructed and push rents up.

“Following the trend of 2012, multifamily in Oklahoma rose to astronomical levels in 2013. With strong demand and new supply, the rising tide of the apartment sector raised virtually all ships,” broker Mike Buhl wrote in Norman-based Commercial Realty Resources Co.'s year-end report.

With the best and newest apartments commanding record prices, Class B properties have become the “preferred asset choice” for investors and demand has grown for Class C properties, Buhl said.

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by Richard Mize
Real Estate Editor
Real estate editor Richard Mize has edited The Oklahoman's weekly residential real estate section and covered housing, commercial real estate, construction, development, finance and related business since 1999. From 1989 to 1999, he worked...
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