First Area MF Buy Adds To Inland's Diversity

OKLAHOMA CITY-Inland Real Estate Acquisitions Inc. opted to buy 1,325 units from local company Legacy Communities to diversify its portfolio, while increasing its area presence. With the $132 million acquisition, Inland Real Estate Acquisitions adds a multifamily component to the three retail assets it already owns.

“We purchase in every asset class across the country,” explains Mark Cosenza, acquisitions coordinator with the Chicago-based Inland Real Estate Acquisitions. He says the Legacy Portfolio, as it’s called, offered quality assets that fit the anticipated returns for the investors.

The 303-unit Legacy Arts Quarter in the CBD, the 396-unit Legacy Crossing on the south side, the 328-unit Legacy Woods in Edmond, OK and the 298-unit Legacy Corner in Midwest City, OK will complement the three shopping centers, Cosenza says. The portfolio’s retail side consists of the 123,873-square-foot Memorial Square Shopping Center at West Memorial Road and North Pennsylvania Avenue on the north side; the 242,000-square-foot 242 Penn Park Shopping Center at Interstate 240 and Pennsylvania Avenue on the south side, and the 100,671-square-foot Village at Quail Springs just north of Memorial Road on the far north side.

Cosenza tells GlobeSt.com another appealing factor of the portfolio is its location in a growing area in the country. Devon Energy is building its new headquarters just steps away from Legacy Arts Quarter, plus the city is making a $4-billion investment in revitalizing the area. “Oklahoma City also has Tinker Air Force Base, home of the AWAC surveillance,” Cosenza adds. “These two together are good drivers.”

As for the assets just acquired, Cosenza says they’ll keep the Legacy name and won’t require much, if anything, in the way of upgrades. The properties are, on average, two years old. “They’re young properties,” he notes. “They don’t require much capital expenditure right now.” Inland Real Estate Acquisitions will manage the 97%-leased portfolio.

Cosenza says Inland Real Estate Acquisitions doesn’t have anything more targeted right now, nor is he selective in the cities in which he’d like to acquire assets. He says a lot of opportunities are coming across his desk.

“In the case of Oklahoma City, this has strong demographics, a good growth story and a quality return for my investors,” he adds. “We’ll keep an eye on it.”