New Ownership for Metropolitan
Record price for sale of urban core apartments
A Washington-based Weidner Apartment Homes has purchased Metropolitan Apartments for $64 million, a per-unit cost of $194,666 – the most ever paid per unit for an Oklahoma City apartment complex. Metropolitan, which is located east of Automobile Alley at NW Eighth and Oklahoma Avenue, was owned by Houston-based Bomasada Group.
At the time of sale, 95 percent of Metropolitan’s 329 units were leased, according to ARA Newmark, an investment advisory firm that brokered the transaction. The occupancy rate is higher than average for apartments in the urban core, where 80-88 percent is far more common.
Bomasada opened Metropolitan in 2016, and its location is ideal for several demographics – including OUHSC students, faculty and staff, employees of the Innovation District and Tinker AFB employees and military personnel, as well as locals who want easy access to Bricktown and the downtown districts. The streetcar will run right by the property when it opens in 2018, which makes Metropolitan one of the most conveniently located complexes in the urban core.
The degree to which those factors contributed to the price of the sale is unknown, but for the sake of comparison, it’s worth noting that Deep Deuce Apartments sold for $130,000 per unit in 2013, and according to commercial real estate company CBRE, 2016 per-unit sales topped out at $108,000.
Weidner already owns three other apartment complexes in the city: Brookwood Village on N Shartel, Summit Pointe Apartments on SW 89th and Liberty Pointe Apartments on SE 74th – all brokered by ARA Newmark. The acquisition of the Metropolitan brings their total units in Oklahoma City to 1,965. The Kirkland, Washington-based Weidner owns more than 50,000 units in 250-plus complexes across 11 states, making it the 17th largest apartment owner in the U.S.
Kevin Colard, vice president of acquisitions for Weidner, said (via written statement): “As evidenced by this latest purchase, Weidner remains keenly interested in the Oklahoma market … In fact, the Metropolitan represents our third purchase in Oklahoma City in 2017, and we are not finished yet. By the end of the year, we anticipate our portfolio within the state to be well over 3,000 apartment homes, with roughly 2,000 of them concentrated in Oklahoma City.”
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