X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NORMAN, OK-American Campus Communities and Fidelity Real Estate Group sold its 254-unit Commons on Oak Tree, a 15-year-old student housing complex serving the University of Oklahoma. Shore-to-Shore Properties ended up taking the asset, assuming the $11.7 million loan attached to the property.

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.

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

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.