By: Jennifer Sharpe The Journal Record July 10, 2019
OKLAHOMA CITY – Denver Realty Group began building its Oklahoma City multifamily investment portfolio in December 2018. To date, the group has acquired four properties in the metro, the most recent being Chelsea Manor Apartments, which closed on Tuesday.
A fifth deal is scheduled to close at the end of July. “Our portfolio of communities in Oklahoma City is a great toehold in a market with constantly improving fundamentals,” said Jacob D. Chase, DRG managing partner.
Chelsea Manor Apartments is a 187-unit complex at 6300 N. Meridian Ave. in the Putnam City school district, a traditionally high-occupancy area. The complex, which sold in excellent condition, boasts a mix of comparably larger-than-average units. Chelsea Manor’s community amenities include an on-site leasing office, laundry and a swimming pool. DRG acquired the property for more than $9 million.
DRG’s other Oklahoma City properties include: Castle Tower Apartments (5516 NW 23rd St.), a 121-unit apartment complex in western Oklahoma City that closed in December; Kentucky Pines (5804 S. Harvey Ave), a 60-unit property in Oklahoma City that closed in December; and Belle Isle Terrace (4861 N. Blackwelder Ave.), a 97-unit complex in Oklahoma City that was acquired in February. The pending sale is for a 358-unit apartment complex in northern Oklahoma City, with closing anticipated late this month.
“After an exhaustive search of most markets in the United States, Oklahoma City was identified as a misunderstood market with significant upside,” Chase said. “Current market vacancy of approximately 10% limits growth-oriented investor interest, but masks citywide urban upgrading and development, large population inflows, new job creation, a limited new construction pipeline, and general economic buoyancy. We believe the lifestyle and amenities offered by this first-class city, the current low cost of living and the extremely low area unemployment will continue to drive population flows in excess of currently available housing stock. This dynamic has the potential to create a tight rental market, which is exactly the dynamic we seek.”
In addition to its more recent apartment complex acquisitions in Oklahoma City, DRG’s full-service property management branch has a strong presence in Denver and Colorado Springs for a combined unit total of about 1,500 units ranging from apartment complexes to single-family homes. On the investment side, DRG and partnerships collectively own more than 1,000 residential units for a total real estate portfolio valued at approximately $100 million. Additionally, DRG offers brokerage services and a maintenance team.
“Oklahoma City has the wind at its back,” Chase said. “It is very unappreciated by real estate investors in general, but with good assets at great prices in a growing market, Oklahoma City is sure to attract more investor capital.”
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