Newspaper article THE JOURNAL RECORD

Class C Multifamily in OKC Expected to Accelerate for Balance of the Year

Newspaper article THE JOURNAL RECORD

Class C Multifamily in OKC Expected to Accelerate for Balance of the Year

Article excerpt

The multifamily housing market is continuing to see a lot of action in the second quarter of 2013, and now some of those transactions have even trickled down to Class C units.

Price Edwards & Co. Multifamily Specialist David Dirkschneider said the market has seen an increase in the number of Class C units sold, but has not seen as many Class A units purchased compared to this time in 2012.

According to data gathered by Price Edwards, the first half of 2013 shows that the total multifamily sales volume in Oklahoma City was just over $108 million, a 51-percent decline from the same period in 2012. However, there was only a 6-percent decline in the number of units sold during the same time period. The sales volume decline can be credited to more than $200 million in Class A properties that were sold in the first half of 2012. In 2013, Class A properties have accounted for only $63.5 million of the total sales for the year.

The market consists of mostly Class C properties; therefore, it is only natural that more of those types of units are sold. But in order to have a continued number of Class A apartments sold, the product must be on the market, and Dirkschneider said that is not happening.

"We've experienced a high volume of Class A sales over the last two years, but it's not sustainable to keep selling them because there aren't a lot of them," he said. "Class C makes up a bulk of the market. But over the last few years, Class A deals were easier to finance and now lenders are starting to open up their books and start lending more."

He said he can see the change in the market by the numbers, but he can also hear it in his office as the phone is ringing with bankers on the other end of the line.

"Over the last few years, I didn't have a lot of bankers calling me for deals," he said. "Now they're calling me all the time asking about deals. When the banks are calling, looking to do loans, we're going to see deals happening again."

The Class B market for this year has seen an 86-percent decline compared to the same time in 2012. In 2012, Class B sales totaled $45.6 million, while there has been only $6. …

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