December 18, 2006

Virtú Investments Acquires the Stoneleigh On May Apartments

Oklahoma City, OK - Virtú Investments, LLC, a San Francisco based real estate investment management firm, purchased the Stoneleigh on May Apartments in Oklahoma City, OK in December of 2006. The 244-unit, Class A property is strategically located in the affluent Northwest Oklahoma City submarket, just minutes away from the Quail Springs and North Park Malls and 13 miles northwest of the downtown central business district. Virtú was able to purchase the property at a price which, after a modest cosmetic renovation, will be roughly 75% of current replacement cost.

The Stoneleigh on May investment represents an excellent opportunity for Virtú to acquire a newly constructed, well located asset in an inflationary construction environment, at below replacement cost. Virtú believes it will be a significant challenge to build new multifamily housing in Oklahoma City as the lower rents in this market relative to other regions of the United States will require lower cost construction, which will be difficult to maintain given the recent increases in construction costs due to various market forces.

Virtú will execute a substantial renovation to Stoneleigh on May that will include both interior and exterior upgrades to the property. This renovation will encompass exterior upgrades, landscape and pool improvements, unit upgrades, washer/dryer installations, and the buyout of an existing security contract. Virtú anticipates the renovation will enhance curb appeal, improve amenities, and raise the overall profile of the property.

Virtú will be assuming long term HUD financing that will expire in January 2043 and has a fixed rate of 5.5%, with a PMI provision of 0.5% of outstanding principal. Virtú has the option of paying off this debt after year 3. Virtú likes the fixed rate loan due to the historically low rate, which should help to preserve a strong exit CAP rate.

The Stoneleigh on May Apartments purchase was sourced by Texas based Regional Acquisitions Director Marc Olivieri. For more information concerning other multi-family acquisitions throughout the Midwestern United States, contact Marc Olivieri (480-773-1619). For information concerning acquisition possibilities in the Western U.S., contact Stuart Bone (415-999-2088). For information concerning commercial acquisitions throughout the U.S., contact Will Fleming at Virtú Commercial (415-398-4202).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over fifty properties throughout the country. The company's current portfolio is valued at approximately $400 million and Virtú has approximately $120 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.

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