California company lands another Tulsa-area apartment complex
BY ROBERT EVATT World Staff Writer
Tuesday, July 10, 2012
7/10/12 at 3:53 AM
A deep-pocketed investment group has followed up a $32.2 million purchase of Sonoma Grande apartments with the $27.9 million purchase of Estancia Apartments.
Steadfast Asset Holdings Inc., a company from Irvine, Calif., headed by Bill Stoll, purchased the property from Flournoy Development, the Columbus, Ga.-based company that constructed the 294-unit Estancia complex at 7705 S. Mingo Road in 2006, said David Forrest, a broker with CB Richard Ellis/Oklahoma.
Forrest said Steadfast Asset Holdings was under contract to buy both sets of apartments at the same time, though the sale of Sonoma Grande, 9303 E. 81st St., worked out first in May.
"There were specifics unique to each transaction that made the timing different," Forrest said.
Both complexes were Flournoy's sole properties in the Tulsa area, and the two are currently Steadfast's sole holdings here.
The Estancia sale was uncommonly large; Forrest estimated the next-biggest sale of a Class A property of comparable size was the 2008 transfer of Vintage on Yale, a 360-unit complex at 5376 E. 81st St. in a deal worth $26.3 million.
Forrest said Steadfast was attracted to properties in the area due to the potential for a better type of investment.
"If they purchased physical assets in primary markets like Dallas or Austin, they would pay a higher price and have a lower rate of return," Forrest said.
Estancia is in great physical shape and its occupancy is in the low 90 percent range, much like Sonoma Grande, Forrest said.
The complex contains a mix of one-, two- and three-bedroom floor plans that rent from $755 to $1,215 per month.
The sale was brokered by David Forrest, William Forrest, Eva Wills and Brian Donahue with CB Richard Ellis/Oklahoma.
Original Print Headline: California firm buys Tulsa apartment complex
Robert Evatt 918-581-8447
Estancia Apartments at 7705 S. Mingo Road has 294 units with rents from $755 to $1,215 per month. STEPHEN PINGRY / Tulsa World