"We had two or three interested parties, but Case is the one who came through," comments CB Richard Ellis vice president Bob Pielsticker, who operates out of the company's Tulsa office. "This ended up being only about a 60-day close. It went fairly quickly, even with everything crumbling in the stock market."
CBRE vice president Brian Hunt, who teamed with Pielsticker to market the portfolio on behalf of Rreef, tells GlobeSt.com that Case utilized the many banking relationships he developed through other real estate ventures to obtain quick financing for the acquisition. "We lost a little time, due to the holidays, but there were no major hiccups with this deal," says Hunt, who also works from Tulsa. Hunt adds that Case, who owns multifamily and office product in the metro area, felt the portfolio would nicely balance his assets.
Pielsticker says the 87%-occupied portfolio's upside is that rents can be increased. Some of the rents can also be converted from industrial modified gross to triple net. Furthermore, Case bought the properties at a 9.5% cap rate. "He'll leverage that up and do well with it," Pielsticker comments.
The Tulsa buildings were part of a 22-million-square-foot portfolio Rreef had acquired in 2005 from CalEast Industrial Investors LLC. The New York City company has about 2.6 million square feet from that portfolio remaining in Oklahoma City. The property is on the market. Pielsticker says there's been some interest, but no definite offers.
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