Ryan Reid, senior vice president and national director of student housing with CB Richard Ellis' Dallas office says the marketing and sale were driven by the joint venture's desire to achieve some liquidity. Reid, who had the marketing assignment with William Forrest, first vice president with CB's Oklahoma City office, says ACC has one asset remaining in Norman. This is University Greens, which is adjacent to Commons on Oak Tree at 1111 Oak Tree Ave. The property is about a mile from the campus, and located on a shuttle route.
"We marketed that asset along with Commons on Oak Tree; Commons had attractive, assumable financing, but University Greens did not," Reid tells GlobeSt.com. "As we got deeper into the marketing process, the defeasance cost of getting rid of the loan on University Greens wasn't too positive."
However, Commons on Oak Tree generated 10 offers, he continues. "It' was in a good, solid student market and this project had leased up well for the 2009-2010 school year," Reid adds. The asset had mid-90s occupancy.
Shore-to-Shore out of Sausalito, CA brought a competitive price, a compelling track record resulting from other projects it owns and an ability to close to the table. The buyer also believed the asset would be a good strategic fit. There was a value-add component to the sale in that Shore-to-Shore could make some upgrades to the property and increase the rents, Reid notes.
Commons on Oak Tree has two-bedroom and four-bedroom units averaging approximately 1,027 square feet. The average rent is $350 per bed.
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