Philly Investor Sets Record with $77M Multifamily Buy

OKLAHOMA CITY-A Philadelphia buyer beat out other bidders to acquire the 708-unit, class A, Lincoln at Central Park Apartments. The new owner paid $77 million -- $109,000 per door – to the multifamily property's developer Gardner Tannenbaum Group, effectively setting a new sales record for assets of this type in the region.

Lincoln at Central Park, at 500 Central Park Dr., was approximately 93% occupied at closing. "The asset is very attractive, in a great location, with good occupancy and a good story," explains Apartment Realty Advisors Bart Wickard, who with ARA principal Brian O'Boyle and associate Brandon Lamb represented the seller. As such, he goes on to say, the multifamily property attracted a lot of national interest from private investors and REITs.

Wickard tells GlobeSt.com that the buyer was attractive to Gardner Tannenbaum because of a recent history of similar large acquisitions, a good reputation as a multifamily property operator and a solid relationship with Freddie Mac. Lincoln at Central Park was built in two phases (2007 and 2010), and the second phase had a Freddie Mac loan assumption. Given that, "We felt the buyer had a comfort level with that agency," Wickard notes. Some capital expense will be put into clubhouse renovations.

In so far as what drove the seller to put the asset on the market, Wickard points out that the positive economic fundamentals of Oklahoma City were a good incentive. "They have a lot of projects they're planning, and it was a good time to sell the apartments and move into other areas," Wickard comments.

Lincoln at Central Park has one-, two- and three-bedroom floor plans, ranging in size from 659 square feet to 1,373 square feet. Current rents are between $705 and $1,305 per month.