Oak Coast Goes on Multifamily Buying Spree
- Sep 30, 2013
Los Angeles—Oak Coast Properties has acquired two apartment communities in northern California, paying a combined $22.9 million. Totaling 202 rental units, the properties are 400 Santa Alicia Dr. and 333 Enterprise Dr., both in Rohnert Park, Calif.
The acquisitions are part of a larger drive by LA-based Oak Coast to acquire multifamily properties in the western states. Roughly simultaneously with the Rohnert Park deal, the company also bought 10 southern California apartment properties for another $19 million.
Oak Coast Properties CEO Matthew Heslin tells MHN that the company’s goal is to seek value-add properties of over 100 units, but mainly 200 to 250 units. “We’re always looking for properties to buy at less than replacement cost, in markets with sustainable economic growth,” he says. The company plans to acquire an additional $150 million in multifamily properties through June 2014.
Oak Coast is looking for multifamily deals in California, Arizona, Washington, Oregon and Utah, in addition to Colorado and Texas. “For example, we see a great deal of opportunity in Denver,” Heslin notes. The long-term prospects for multifamily ownership are good, he explains, in part because many younger workers have changed their thinking about the value of homeownership.
Most of the acquisitions are off-market deals, Heslin says He adds that Oak Coast has the advantage of speed in hunting for properties, and the fact that it’s able to offer pay in cash.