DEERFIELD, IL—Oak Residential Partners, LLC, has just bought three multi-family properties with a total of 670 units in two separate transactions. In the first, Deerfield, IL-based Oak acquired the 268-unit Evergreens at Mount Moriah Apartments located in Durham, NC in a joint venture with an institutional private equity group. In the second, it acquired a two-property Missouri portfolio consisting of the 252-unit Westbrooke Village Apartments in Manchester, and the 150-unit Pine Tree Club Apartments in Wildwood.
These properties, both in suburban St. Louis, were acquired in a joint venture with an internationally-based high net worth family. Oak's share of equity for the three acquisitions was contributed from its initial co-investment fund, ORP Apartment Portfolio, LLC. The fund consists of high net worth investors and family offices.
“We are excited to complete these acquisitions and add these three properties to our growing portfolio of multi-family assets,” says 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.”
The Evergreens at Mount Moriah was built in 2001 and consists of 268 apartment units in 12 garden-style buildings and 608 open parking spaces on 32.22 acres. It features unit layouts with 9-foot ceilings on lower floors and 15-foot vaulted ceilings on the top floor, a 3,500-square-foot clubhouse, fitness center, business center, outdoor pool, tennis court, beach volleyball, gazebos, and an outdoor spring fed pond. Oak has hired Greensboro, NC-based Hawthorne Residential Partners to manage the property.
Pine Tree Club Apartments, built in 1987, consists of 10 three-story buildings on concrete slab-on-grade foundations. The property has one-, two-, and three-bedroom units ranging from 805-square-feet to 1,340-square-feet. Amenities include clubhouse, fitness center, laundry center, basketball and tennis courts, hot tub, sauna, tanning bed, and carports.
Westbrooke Village Apartments was constructed in two phases. Phase one was built in 1984 and consists of 144 units in 8 three-story buildings. Phase two was built in 1986 and consists of 108 units in 6 three-story buildings. It contains one-, two-, and three-bedroom units ranging from 704-square-feet to 1,143-square-feet. Amenities include clubhouse, fitness center, laundry centers, tennis court, racquetball court, hot tub, sauna, tanning bed, garages, and carports. Oak has hired Farmington Hills, MI-based Village Green Management Co. to manage both Missouri properties.
Company officials say that although all three were well-maintained, each was also underperforming due to the previous owners' lack of capital. Oak plans to launch a rebranding and repositioning program that will enhance property management, upgrade the amenities and exteriors, and make interior renovations to select units. Between the properties, Oak plans to spend about $3,500,000 on the upgrades.
“All three properties provide an excellent opportunity to invest needed capital, reposition, and add significantly to the bottom line returns,” says Adam Levine, managing principal of Oak Residential Partners. “These opportunities fit perfectly into Oak's business strategy to improve and reposition multi-family properties achieving above average return for our investors.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
