X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OKLAHOMA CITY, OK-SIA Partners Ltd. has shed its 1,013-unit, class B multifamily portfolio, receiving the $44.5-million ask in the process. The buyer, a partnership led by local real estate investor Gary Brooks, paid off the properties’ existing Fannie Mae bond then put a HUD loan in place to buy the three-asset collection.

Sperry Van Ness advisor Andy Burnett and associate advisor David Burnett introduced the portfolio to the market on behalf of the Santa Barbara, CA seller in July 2008. Andy Burnett tells GlobeSt.com that before the September 2008 market crash, “we had a couple of list price offers. We’d gotten close to putting it all together, then the market collapsed.”

The Burnetts, who operate out of Sperry Van Ness’ Oklahoma City Office pulled the portfolio off the market in December 2008, though continued talking to potential buyers. Brooks and his partners, who had been tracking the portfolio, suggested the strategy of paying off the existing Fannie Mae bond on the project and applying for a HUD loan.

Andy Burnett says the bond, which had been assumable, had a 50% loan-to-value. Brooks replaced it with a 35-year HUD loan with an interest rate of approximately 4.6% and a better LTV. What especially impressed Burnett was that the entire deal took five months to complete.

“For paying off Fannie Mae bonds and putting a HUD loan in place, that’s remarkably fast,” Burnett says. He contends there were a few reasons why things moved so quickly, one of which was a team of attorneys on the buyer’s side that was familiar with HUD loans. Furthermore, “they were local, so they understood the market and the properties,” Burnett adds.

The portfolio consists of the 368-unit Watersedge Apartments at 4317 SW. 22nd. St. and 157-unit Gardens at Reding at 3708 S. Douglas Ave., both in Oklahoma City, and the 488-unit Oxford Oaks Apartments at 1920 E. 2nd. Ave. in Edmond. The 1980s portfolio is 90% occupied.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.