Sperry Van Ness advisor Andy Burnett and associate advisor David Burnett introduced the portfolio to the market on behalf of the Santa Barbara, CA seller in July 2008. Andy Burnett tells GlobeSt.com that before the September 2008 market crash, "we had a couple of list price offers. We'd gotten close to putting it all together, then the market collapsed."

The Burnetts, who operate out of Sperry Van Ness' Oklahoma City Office pulled the portfolio off the market in December 2008, though continued talking to potential buyers. Brooks and his partners, who had been tracking the portfolio, suggested the strategy of paying off the existing Fannie Mae bond on the project and applying for a HUD loan.

Andy Burnett says the bond, which had been assumable, had a 50% loan-to-value. Brooks replaced it with a 35-year HUD loan with an interest rate of approximately 4.6% and a better LTV. What especially impressed Burnett was that the entire deal took five months to complete.

"For paying off Fannie Mae bonds and putting a HUD loan in place, that's remarkably fast," Burnett says. He contends there were a few reasons why things moved so quickly, one of which was a team of attorneys on the buyer's side that was familiar with HUD loans. Furthermore, "they were local, so they understood the market and the properties," Burnett adds.

The portfolio consists of the 368-unit Watersedge Apartments at 4317 SW. 22nd. St. and 157-unit Gardens at Reding at 3708 S. Douglas Ave., both in Oklahoma City, and the 488-unit Oxford Oaks Apartments at 1920 E. 2nd. Ave. in Edmond. The 1980s portfolio is 90% occupied.