Deep Deuce apartments sell to out of state investors

[metro]

OKC's Deep Deuce Apartments sell for $26.9 million

By Pamela Grady - 8/2/2007


Omaha. Neb.-based Haley Associates LP purchased Deep Deuce Apartments, 314 NE 2, from Somerset Partners of New York City/Arbors of Bricktown LP.


The three-story, 294-unit property – built in 2001 – totals 299,048 square feet on 7.1 acres.


Mike Buhl of CRRC in Norman and Jordan Cortez of Apartment Realty Advisors in Dallas handled negotiations.


“It’s big for Downtown, I think, to show the confidence that a lot of these investors have in that market,” Buhl said.


Buhl said the property was listed at $28.2 million when it went on the selling block last year.


“It’s 95 percent of the asking price, which is pretty typical of the range in where we end up on deals,” he explained. “That’s $91,496 per unit.”


The property was at 95-percent occupancy at time of sale.


“Their trend on that property has been 94 - up to 98 - percent for the last several years,” Buhl said.


“It’s a very strong area. This particular buyer looked at it that there’s not a big supply of rental housing Downtown, and the primary development down there driving that market are for-sale condos and town homes, which they view as taking that market to another level in the next few years.


“They felt this property was well positioned for the OU Medical Facility and the Presbyterian Health Foundation, and that whole medical facility continues to grow…they looked at it as a great long-term investment.”


Tammi Adams, underwriting analyst for Haley Associates LP, said what attracted the Omaha-based company to the apartments was its urban feel and location to nearby and up-and-coming medical complexes, as well as, the area’s business and residential growth.


“It’s just a great location to be in, and we like the urban feel of Deep Deuce. It’s a unique property in Oklahoma City,” she said. “Another draw to Deep Deuce is that it’s the only apartment complex in that area of that quality in the Bricktown area as opposed to the Downtown proper and medical complex.”


Dial Equity Inc., sister company to Haley Associates LP, will manage the property. Jennifer Johnson of Capitol Abstract was the closing agent.


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OKCBusiness, Copyright © 2007, All Rights Reserved.

[Misty]

Hopefully they'll get new management and power wash the place.

[metro]

I hope they don't power wash the place, at least not the buildings. The brick still looks almost brand new. It would look nicer if it had more of an aged look, as if they were there along time. Most of our downtown looks brand new because most of it is in reality. I personally think the place is upkept fine, that's just my two cents.

[Misty]

When Urban Neighbors were delivering flyers we all commented on how dirty the place was. It looks fine from the street and the brick is fine, but when you go in the complex the wood or paneling (or whatever it is) is very dirty as are the walkways/apt. entry areas. Lots of dirt, dust, bugs and cobwebs.

[metro]

As long as they don't powerwash the brick I'm for it. I imagine alot of the dirt is coming from the "Hill" project just east. Once those are built, I don't think it will be a long-term problem. Not to mention, it's Oklahoma and it's windy here! I think the main problem with Deep Deuce apartments is they cheaped out and did some stucco/wood and they should have done all brick.

[OK26]

I think it's amazing that they sold for so much per unit.

I just moved from there after a two year stint...it was horrible. Our air conditioner went out for over 4 days last summer in the middle of August because our breaker box caught on fire, there were HUGE cracks running across the ceiling in several places, and our ceiling leaked for two weeks during the recent on-going rain storms because of a hole in the roof...there was water actually flowing down the walls!

The stairwells are dirty all of the time...before they started most of the local construction. Our stairwell always had plaster falling from the ceiling.

They for-sure skimped on the construction because the fake plastic tile in the kitchen was coming up and they wouldn't come to fix it. The carpet was coming away from the walls several places.

I fully understand that it's an apartment and you can't expect too much...but for what I paid in rent it was frustrating.