Richard Tanenbaum turned doubtful into dollars Monday — $77 million. He sold The Lincoln at Central Park, an apartment complex he built in a place dis
Gardner Tanenbaum Group sold the 708-unit complex, built in two phases in 2007 and 2009, to GoldOller Real Estate Investments, a 2-year-old fund affiliated with Philadelphia-based Multifamily Management Services, which dates to 1970.
The Lincoln at Central Park is at 500 Central Park Drive, tucked into the southwest corner of Lincoln Boulevard at Interstate 44. But it isn't necessarily easily accessible from either, which is the main source of the site's questionable reputation for an apartment complex.
The sale price came to about $109,000 per unit — not a record price here but the highest since 2008 and the most for a single-property sale, and a sign Oklahoma City's newfound prominent position among secondary markets has the attention of investors with cash and good credit, meaning access to historically low lending rates of around 4 percent.
“It's a wonderful newer addition to our portfolio, the newest asset in our portfolio,” said Jake Hollinger, GoldOller's chief operating officer. Principals are Jeffrey Goldstein in New York and Richard Oller in Philadelphia.
The purchase seems to fit GoldOller's strategy for core investments as outlined on its website: the acquisition of well-located, fully leased multifamily, student and mixed-use properties with potential for capital appreciation and with good cash flow “for our more ‘conservative' investors seeking portfolio diversification and high yields ... without undue levels of risk.”
Hollinger said GoldOller was formed for acquisitions east of the Mississippi River. The parent company owns and manages some 30,000 apartment units mostly on the East Coast. But GoldOller recently acquired property in Kansas City as well as here.
“We're very excited to be in Oklahoma City, which we consider to be exploding,” Hollinger said. “We are active in the market and are looking for other multifamily opportunities in the region.”
Tanenbaum said GoldOller was the standout of more than a dozen would-be buyers making offers on The Lincoln at Central Park in the six-week marketing period. It manages its apartment properties.
“Of all the offers, GoldOller had the best resume, and we feel certain that the residents of The Lincoln at Central Park will continue to enjoy the wonderful experience of the Lincoln and (its) motto since its inception, ‘Life is better at the Lincoln,'
GoldOller assumed a $22.24 million Freddie Mac loan in acquiring phase 1, a 5.61-percent “10/1” note, meaning a fixed rate for 10 years, then adjustable for the remaining year — with an interest-only payback the first five years. It used cash and other financing to buy for phase 2.
“It was the best property we could sell at the best price, which we got,” said Tanenbaum, whose company developed and owns The Montgomery and Park Harvey, “boutique” apartments in former office buildings downtown, and The Classen, a former office tower turned condos and apartments on Classen Boulevard.
“I'm not telling you what I'm making, but I'll tell you I can get extra cheese on my Whopper now,” Tanenbaum said.