News and Releases
May 23, 2011
Virtú Investments Acquires the Residence Inn of Norman, OK
*Norman, OK*— Virtú Investments, LLC, a San Francisco based real estate investment management firm, purchased the 126-unit Residence Inn in Norman, OK for $3,850,000. This acquisition allows Virtú to buy a bank-owned distressed asset at a low basis (original loan was $9.9M) and execute a value-add repositioning strategy in a strong apartment market. The acquisition price represents approximately $30k per unit or 40% of today’s estimated $75k per unit local replacement cost.
The Residence Inn was built in 1983. Several years ago an investor did a major repositioning of the property to have it flagged as a Residence Inn by Marriott. The hospitality industry in Norman was hit hard by the economic downturn and was eventually taken back by the lender. This created the opportunity for Virtú to purchase it from the lender. One of the most significant upsides for an investor is the quality of this property, as it has had to comply with Marriott’s standards in terms of the interior and exterior integrity of the property. As a result, this asset is well positioned to be returned to a multifamily property.
Residence Apartments contains 126 units in nine two- and three-story buildings on 5.11 acres, two laundry facilities, maintenance shop, and private office. The main building houses several offices and a clubroom overlooking the outdoor swimming pool. The property also features a sport court on the west side of the property. The units are total electric, individually metered and feature fully equipped kitchens. Each unit has an individual thermostat for heat and air conditioning and washer/dryer hookups. The units are all furnished according to Marriott standards – and Virtú will be taking ownership of the furniture with the acquisition of the property.
Virtú is repositioning the extended stay hotel as a market-rate apartment property, now rebranded as Stoneridge Apartments (http://stoneridgenorman.com). This process includes updating the office area, adding a club room, remodeling the fitness facility, and completing some exterior painting of the buildings.
Contact Michael Green at (415) 398-4641 or (JavaScript must be enabled to view this email address) to discuss this or other multi-family acquisitions in Oklahoma.