TULSA, OK-Sterling American Property Inc. and Des Moines, IA-based BH Equities LLC have bought the 296-unit Stonehaven Villas from Merit-Tulsa Properties LP of Dallas. The partnership has paid $24.5 million for the 96%-occupied complex.

According to Tom Dolan, senior vice president of asset management for Great Neck, NY-based Sterling American Property, Stonehaven Villas' appeal is six-year age and location in a strong school district at 8110 S. 107th St., positioned between the Downtown and more affluent suburb of Broken Arrow. Dolan says the post-renovation strategy is aimed at building a pool of higher-income tenants. "That will add value," he says, adding changes will be made to interiors and the amenities' package.

Dolan says the acquisition process was complicated because it involved a 30-year HUD loan assumption. As a result, Stonehaven Villas was in escrow for close to 18 months. Aaron Hargrove with Commercial Realty Resources' Tulsa office and Brian O'Boyle with Apartment Realty Advisors in Dallas brokered the transaction.

Stonehaven Villas consists of one-, two- and three-bedroom apartments, ranging from 703 sf to 1,366 sf. The average monthly rent is $825. BH Management Services Inc. of Dallas will take management and leasing from Merit Texas Properties.

This acquisition is the JV's second in the area in four years, but it's now searching for other value-add opportunities. The partnership bought the 682-unit Westport on the River in 2002. "We're truly committed to Tulsa, especially in light of strong, solid economics," Dolan says.