Troubled Macco Properties lists its portfolio

Troubled Macco Properties has taken the unusual step — for owner Lew McGinnis — of signing an exclusive listing agreement to try to sell a large portfolio of Class C properties here and in Wichita, Kan.
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At a glance
Properties or sale

Oklahoma City

• The Brooks Apartments, 2500 W Brooks St., Norman, 160 units, $4 million.

• Twin Lakes Apartments, 6103 NW 63, Warr Acres, 296 units, $9.25 million.

• Newport/Granada Apartments, 3407 NW 39 and 3405 NW 40, 132 units, $3.7 million.

• Emerald Court Apartments, 4746 NW 23, 111 units, $3.05 million.

• Remington Apartments, 7125 S Santa Fe Ave., Oklahoma City, 220 units, $7.95 million.

• Sovereign Business Park, 1220 and 1300 Sovereign Row, 48,000 square feet, $3 million.

• Charter Business park, 4219 Charter Ave., 21,600 square feet, $600,000.

• Northgate Office Park, 4010 N Lincoln, 42,297 square feet, $1.8 million.

• MacArthur Executive Building, 4614 N MacArthur Blvd., 20,000 square feet, $550,000.

• Former Riviera Drive In, 8 SE 59, 12 acres, $600,000.

Wichita, Kan.
Macco, which filed for Chapter 11 bankruptcy protection in November, is offering six apartment complexes, three office parks, a freestanding office building and 12 acres of vacant land in Oklahoma City, and seven apartment properties in Wichita for a combined $85,975,000.

The offering totals 3,001 individual apartments and 138,897 square feet of commercial space, said broker David Dirkschneider of Price Edwards & Co., who has the listing.

Some distressed
Two of the apartment properties in Oklahoma City and three of the apartment complexes in Wichita are part of the bankruptcy proceeding, court records show. Last fall, First Enterprise Bank sought foreclosure on several Macco-owned properties, including two of the office parks and one of the Wichita apartment properties, but the dispute was settled by mid-October.

“I have personally managed many of these properties in the past and know firsthand that they would make a great investment for the right buyer. Some of the locations are phenomenal,” Dirkschneider said.

Two of the Wichita properties are on the Arkansas River downtown where a revitalization effort is in the works; several of the apartment complexes here have “excellent visibility;” and the office buildings range from “needs some work” to “built out to a higher quality than the rest of the area,” he said.

Not new offerings
Most if not all of the properties have been for sale for months if not a few years, pointed out Mike Buhl, apartment broker and owner of Commercial Realty Resources in Norman. He said the metro-area apartments are priced at the top end of what the seller might reasonably expect.

“The pricing is certainly indicative of more of a Class B-type property than Class C,” he said.

Buhl said what makes this marketing effort different is the exclusive listing agreement with Dirkschneider and the repackaging of the properties as a portfolio — although Dirkschneider said Macco would consider selling them individually or in any combination.

“All in all, this portfolio is a great investment opportunity for a large multifamily owner to move into the market and gain an immediate strong presence,” Dirkschneider said. “They would be able to do what the current owner does and capitalize on volume to keep expenses low.”