TULSA, OK-A Bakersfield, CA company has plunked down $12.6 million for the class B Riverchase Apartments, its second asset in the city. The new owner plans to make only minimal upgrades to the 432-unit complex, which was built as student housing for nearby Oral Roberts University.
Chandler Wonderly, principal and co-owner of buyer Olympus Property, says one of the more unusual aspects of the 30-year-old asset at 7901 Riverside Dr. is it is all two-bedroom units, each 950 sf. The monthly rent is $530 per unit.
"In Tulsa, during the 1980s, what was built was a high percentage of one-bedroom apartments," Wonderly says. "This is one of the few two-bedroom assets and it has the lowest rent per sf in the entire submarket." He tells GlobeSt.com that another appeal for the 95%-occupied asset was an assumable loan, which carries a 4.99% interest rate and expires in 2015. Michael Case of Tulsa was the seller.
The acquisition is Olympus' second in one month. It paid $8.6 million for the 240-unit South Port Apartments at 6326 S. 107th East Ave., which is about 11 miles southeast of the 25-acre Riverchase Apartments.
Wonderly says he likes the fundamentals of Tulsa and Oklahoma in general, especially for multifamily investments. Although the volatile credit markets are putting the brakes on the company's investment in the near term, Wonderly says expansion is definitely in its future. "We like any multifamily asset that comes with a decent return on investment," he stresses. "We'll look at everything."
The transaction was brokered by CB Richard Ellis principals David Forrest and William Forrest and first vice president Eva Willis, all in Oklahoma City. Olympus Property will manage the asset.
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