SCP Acquires Oklahoma City Apartment Community
- Apr 20, 2012
Oklahoma City—Chicago-based Strategic Capital Partners LLC (SCP) has acquired Quail Springs, a 276-unit apartment community on Oklahoma City’s northeast side. Announced April 11, the acquisition was made through SCP’s high net worth Core Plus fund, Strategic Capital Partners Real Estate Opportunity Fund I.
Though Quail Springs was completed only last year, it will be the beneficiary of a capital infusion that will provide common area upgrades, landscaping improvements and repairs to minor deferred maintenance items. Completion of that work should result in elevating rents and the current 92 percent occupancy rate to levels consistent with this particular submarket, according to SCP.
“The property needs curb appeal,” SCP managing director Robert Bollhoffer tells MHN. “We plan on updating the leasing center, adding landscaping and some other minor ‘show’ items to increase leasing at the property.”
Other than the need for those improvements, Quail Springs offered much to interest SCP, Bollfoffer adds. “It is a newer property in a solid submarket of Oklahoma City,” he says. “The market has good demographics and job growth. [It is] extremely strong. There are some new units coming online, but the market can withstand these new units.”
The acquisition of Quail Springs is a tremendous addition to SCP’s high net worth fund, Bollhoffer also notes. “This deal offers a strong current yield to our investors, as well as future capital appreciation. We look forward to adding additional properties to the fund throughout 2012.”
SCP is a seven-year-old, privately held, real estate investment management firm that utilizes a value-added investment strategy in its acquisitions of multifamily and commercial properties throughout the United States.
Quail Springs, which was acquired by SCP in a joint venture with a local operating partner, is the third property acquisition within the Strategic Capital Partners Real Estate Opportunity Fund I.