Oak Residential Continues Expansion With Two Multifamily Properties
- Dec 21, 2015
KANSAS CITY, Kan.—Oak Residential Partners of Chicago announced it added 728 multifamily units to its portfolio by acquiring two residential communities in two different states. The 350-unit Four Winds Apartments community is located in Overland Park—the second most populous city in the state of Kansas, and also a suburb of Kansas City, Mo.—while the 378-unit The Gallery Apartments is located in Marietta, Ga., a suburb of Atlanta.
“We are excited to complete these acquisitions and add these assets to our growing portfolio of multi-family properties”, said Rick Wise, managing principal of Oak Residential Partners. “Our equity partners share similar investment strategies and provide us with access to capital which enables us to take advantage of great investment opportunities such as these.”
Four Winds Apartments was acquired in a joint venture with a high net worth family relationship. Oak’s share of equity for both acquisitions was contributed from its second co-investment fund, ORP Apartment Portfolio II LLC, that consists of high net worth investors and family offices. The price tag has not been disclosed.
The Kansas City asset was built in 1986 at 8000 Perry St., and consists of 34 two- and three-story buildings with 175 carport spaces and 702 total parking spaces. Residents can choose from one-, two-, and three-bedroom floorplans ranging in size from 720 to 1,236 square feet. Pinnacle Property Management of Dallas was hired to manage the community.
Community amenities at Four Winds include a clubhouse, fitness center, laundry center, two outdoor swimming pools, basketball and tennis courts, hot tub, and carports. In-unit amenities include ceiling fans and central air, wood burning fireplace, extra storage, private patios and balconies, breakfast bar, spacious walk-in closets, and custom decorator interiors.
The 350-unit community is currently underperforming in the market due to the former owner’s lack of capital to keep features and amenities at a competitive level. Oak Residential intends to have the property undergo a rebranding process, benefiting from the firm’s repositioning program that consists of enhanced professional property management, upgrades to the amenities and exteriors, as well as unit interior renovations to select units. Oak Residential plans to invest approximately $3 million in upgrades at both sites.
“Both assets provide an excellent opportunity to invest needed capital, reposition, and add significantly to bottom line returns,” said Adam Levine, managing principal of Oak Residential Partners. “These opportunities fit perfectly into Oak’s business strategy to improve and reposition multifamily properties achieving above average return for ourselves and our investors.”