FOREST PARK, OH-Oak Residential Partners LLC has purchased itsfirst property, a 212-unit apartment complex here, for about $7.7million from a special servicer. Mills Run Apartments, at 11755Norbourne, is 90% occupied.

All State Management purchased the complex in August 2004 for$10.4 million. However, the company overleveraged the property,says Rick Wise, an Oak managing principal. His firm purchased thesite through a short sale with LNR, with financing in the form of a10-year fixed rate Freddie Mac loan arranged by Troy Kennedy withCB Richard Ellis Capital Markets. “We bought at above an 8% caprate, with new debt below 5%. This property just throws offsignificant cash flow,” Wise says.

Mills Run was built in 1989, and consists of 13 two- andthree-story buildings, with an average unit size of 762 squarefeet. Amenities at the property include indoor and outdoor swimmingpools, a fitness facility, carports and garages, fireplaces, washerand dryer connections and walk-out patios and balconies. Rentsrange from $579 to $809 per month.