BROKEN ARROW, OK-Chicago-based Orix Real Estate Capital Inc. has made its first investment in the state, shelling out $21 million in an all-cash deal to acquire the Heights at Battle Creek. The class A, 276-unit complex was completed in 2006 by the seller, an Arkansas developer.
Located at 1800 W. Granger St. in the master-planned Battle Creek golf community, the multifamily asset was sold by an affiliate of ERC Properties Inc. of Barling, AR. The complex appealed to the buyer because it fit the investor's location parameters.
"This was a combination of a value-add strategy and a good growth area. Here, we were able to buy an asset we liked, add value to it, then decide if we want to hold it long-term or recognize that value and move on to the next property," says Eric Wollan, Orix's senior vice president of acquisitions.
The Heights at Battle Creek is 40% occupied. Wollan tells GlobeSt.com that Orix has hired Greystar Management Co.'s Houston office to manage and lease the property, citing its experience in the Oklahoma markets. "This is newer construction and we feel like this is a property that doesn't require additional capital, other than from the standpoint of stabilizing the asset," he adds.
The gated complex has one-, two- and three-bedroom apartments, ranging from 676 sf to 1,083 sf. Monthly rents are between $645 and $1,005.
Wollan goes on to say that Orix would like to find more retail and multifamily properties in growth markets, including Oklahoma. Nothing local is being targeted or is under contract at this time. Roberto Casas with Holliday Fenoglio Fowler LP's Dallas office represented the seller.
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