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TULSA, OK-Haley Associates has made its first buy in Tulsa, investing $11.5 million in the foreclosed Highlands Apartments. The investor acquired the 593-unit, class C complex from Freddie Mac, even though the distressed asset doesn’t represent a typical buy for the Omaha, NE investor.

“At the time of closing occupancy was 60%, and deferred maintenance is an understatement with this property,” Haley Associates’ assistant director of acquisitions Tammi Adams tells GlobeSt.com. She goes on to say that Haley Associates is making a sizeable investment to upgrade interiors and exteriors of the complex at 6000 S. Memorial Dr. A name change could also be part of the rehabilitation process.

Though Haley Associates’ motto is “buy Monday, cash flow Tuesday,” Adams explains there were several compelling reasons why Highlands was an attractive purchase. For one thing, the complex is in Tulsa, a city with steady job growth, even in the face of a slow economy. “When the economy does come back, Tulsa’s will come back even stronger,” she adds.

Furthermore, the price was right, even with the capital expenditures required to get the 1970s-built property up to speed. “We have experience doing full rehabs and condo conversions,” Adams comments. “Tulsa was a market we really wanted to be in and this opportunity was just too good to pass up.”

Highlands consists of 97 buildings that offer one-, two- and three-bedroom units. Hendricks & Partners’ Aaron Hargrove, with the Tulsa office, Tim McKay, who is based in Oklahoma City and John Clayton, who operates out of the company’s Little Rock, AR office, brokered the sale on behalf of Freddie Mac. Rents are between $350 and $750 per month, with apartments measuring from 450 square feet to 1,250 square feet.

Haley Associates bought two multifamily assets in Oklahoma City in 2007: the 294-unit Deep Deuce of Bricktown at 314 NE 2nd St. and the 113-unit Garden Gate Apartments at 200 W. Union Bower Rd. The company also owns apartments complexes in West Texas.

Adams says Haley Associates would like to make more investments in Tulsa and Oklahoma, and continues eyeing potential buys in Texas as well as various Midwest secondary and tertiary markets. The current economic conditions are providing more opportunities for Haley Associates to bid on likely properties, she adds.

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