OK...potential upgrades to finishes and kitchen appliances, the installation of washer/dryers in...
Transcript of OK...potential upgrades to finishes and kitchen appliances, the installation of washer/dryers in...
OKPORTFOLIO
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EXECUTIVE SUMMARY
3 Properties | 512 Units | Affordable-to-Market Value Add Opportunity | Oklahoma City, OK
CROWN R IDGE OF E DMOND
CHAPEL R IDGE OF TINKER
CHAPEL R IDGE OF YUKON
2 OK3 PORTFOLIO
EXECUTIVE SUMMARY | OK3 PORTFOLIO
J ones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer the exclusive opportunity to acquire the OK3 Portfolio, a three-property, 512-unit Portfolio in the Oklahoma City MSA. The Portfolio represents an attractive, value-add opportunity as all three Properties are currently going
through a market-rate conversion from affordable housing. An Investor will benefit from significant, organic rent growth as nearby unrestricted communities achieve rents more than $200 higher than in-place affordable rents across the Portfolio.
THE OFFERING
Property Name Crown Ridge of Edmond Chapel Ridge of Yukon Chapel Ridge of Tinker
Address: 2500 Thomas Dr 11501 SW 15th Street 5707 SE 48th Street
City, State: Edmond, OK Yukon, OK Oklahoma City, OK
Year Built: 2004 2005 2005
Number of Units: 160 units 200 units 152 units
Start of Decontrol: October 2020 October 2020 October 2020
Termination of Affordable Restrictions: October 2023 October 2023 October 2023
CROWN RIDGE OF EDMOND
*Any unit that turns over between now and October 2023 may be converted to market-rate. 100% of units will be market rate after decontrol in October 2023.
CHAPEL RIDGE OF YUKONCHAPE L RIDGE OF TINKER
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
INVESTMENT HIGHLIGHTS
+8%+5%
+4%+5%
+9%+4%
+5% +2%
+11%
+6%+4%
+6%
$1,350,000
$1,550,000
$1,750,000
$1,950,000
$2,150,000
$2,350,000
Dec. 2020T12
2021 2022 2023 2024
GPI
Crown Ridge of Edmond Chapel Ridge of Tinker Chapel Ridge of Yukon
Market-Rate Conversion Currently Underway, Resulting in Outsized Revenue Growth
All three Properties are currently in a 3-year decontrol, during which existing affordable units may convert to market-rate. All Properties will be fully market-rate by October 2023. A Buyer will be able to realize outsized rent growth not only from the conversion of affordable units to market-rate, but also due to the significant spread of market-rate comps over in-place leasing, which is currently $216 on average across the Portfolio.
Spread in Market Rents over Portfolio In-Place
JLL’s Projected Increase in GPI by Year
Prime Locations Adjacent to Major Employers in Rapidly-Growing & Diversifying MSA
Value Add Opportunity
Population Growth within 1 Mile Radius
(Portfolio Avg.), 2010-2020
Large Floorplans & Suburban Location Drives Demand
Oklahoma City has experienced 15% population growth since 2010 and the diversifying metro economy is supported by broadening aviation/aerospace, energy, and biotech sectors. The Portfolio’s immediate economic drivers include Tinker Air Force Base, the University of Central Oklahoma, as well as significant logistics and industrial hubs, meaning residents enjoy excellent access to employment in high-growth areas. OKC continues to attract new business with Costco being the most recent, promising 1K new jobs to the area over the next 3 years.
The Portfolio offers Investors a value-add opportunity. With potential upgrades to finishes and kitchen appliances, the installation of washer/dryers in additional units, as well as upgrades to the amenity package, Investors have the opportunity to generate premium rents on top of already outsized rent growth.
The Portfolio has some of the only 4 bedroom units available in each submarket. COVID has only increased demand for larger unit sizes, and properties outside of the Central Business District such as the Portfolio are outperforming properties located in core areas.
33%Population Growth in OKC metro, 2010-2020
15%Students at UCO,
3,000 employees and 800+ faculty
17,000Percent Tinker AFB
Payroll Appropriated to Personnel Living
Off-Base
88%
Average spread of renovated peers and
new construction comps over in-place leasing
$289
Population of submarket in a family household
(portfolio avg.), driving demand for larger units
82%
$854
$1,077
$789
$1,036
$779
$959 $947 $949 $893
$0
$200
$400
$600
$800
$1,000
Crown Ridge ofEdmond
Crown Ridge ofEdmond - Market
Rate Comps
Chapel Ridge ofYukon
Chapel Ridge ofYukon - Market Rate
Comps
Chapel Ridge ofTinker
Chapel Ridge ofTinker - Market Rate
Comps
In-Place Lease Rents JLL Proforma
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
CROWN RIDGE OF EDMONDProperty Name Crown Ridge of Edmond
Address: 2500 Thomas Dr
City, State: Edmond, OK
Year Built: 2004
Number of Units: 160 units
Start of Decontrol: October 2020
Termination of Affordable Restrictions: October 2023
Current Unit Mix Unit Description SF
Proforma Unit Mix1
2020 Max LIHTC Rents2
JLL Est. 2021 Max LIHTC Rents2
In-Place Lease Rents
JLL Proforma Market Rents
JLL Proforma Annual Market
Rent
8 1 Bed, 1 Bath, 60% AMI 673 3 $759 $759 $672 $759 $72,864
8 1 Bed, 1 Bath, Market 673 13 -- -- $716 $775 $74,400
59 2 Bed, 2 Bath, 60% AMI 912 27 $910 $910 $801 $910 $644,280
37 2 Bed, 2 Bath, Market 912 69 -- -- $830 $950 $421,800
24 3 Bed, 2 Bath, 60% AMI 1,085 10 $1,050 $1,050 $933 $1,050 $302,400
16 3 Bed, 2 Bath, Market 1,085 30 -- -- $967 $1,150 $220,800
8 4 Bed, 2 Bath, Market 1,285 8 -- -- $1,200 $1,250 $120,000
160 950 160 $934 $932 $854 $947 $1,856,544
1) Proforma Unit Mix takes into account affordable units converting to market-rate from January 1, 2021 through June 30, 2021. 2) Max LIHTC rents take into account applicable utility allowances.
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
University of Central Oklahoma• 17,000 undergrad and grad
students• 800+ faculty, 3K employees
Downtown OKC25 min drive
Home Values $250K - $300KHome Values $250K - $300K
Nort
h Bl
vdNo
rth
Blvd
Midwest City Town Center Plaza673K SF retail
Edmond North High School / John Ross Elementary
Downtown Edmond
W Covell RdW Covell Rd
N Kelly Ave
N Kelly Ave
of Edmond
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
CHAPEL RIDGE OF YUKONProperty Name Chapel Ridge of Yukon
Address: 11501 SW 15th Street
City, State: Yukon, OK
Year Built: 2005
Number of Units: 200 units
Start of Decontrol: October 2020
Termination of Affordable Restrictions: October 2023
Current Unit Mix Unit Description SF
Proforma Unit Mix1
2020 Max LIHTC Rents2
JLL Est. 2021 Max LIHTC Rents2
In-Place Lease Rents
JLL Proforma Market Rents
JLL Proforma Annual Market
Rent
37 1 Bed, 1 Bath, 60% AMI 673 14 $759 $759 $666 $759 $126,374
3 1 Bed, 1 Bath, Market 673 26 -- -- $687 $775 $242,963
73 2 Bed, 2 Bath, 60% AMI 912 27 $910 $910 $744 $910 $298,935
23 2 Bed, 2 Bath, Market 912 69 -- -- $797 $925 $761,738
36 3 Bed, 2 Bath, 60% AMI 1,083 13 $1,050 $1,050 $854 $1,050 $163,800
20 3 Bed, 2 Bath, Market 1,083 43 -- -- $950 $1,100 $567,600
8 4 Bed, 2 Bath, Market 1,288 8 -- -- $1,094 $1,200 $115,200
200 927 200 $906 $905 $789 $949 $2,276,609
1) Proforma Unit Mix takes into account affordable units converting to market-rate from January 1, 2021 through June 30, 2021. 2) Max LIHTC rents take into account applicable utility allowances.
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
OKC Outlets434K SF retail
Hobby Lobby HQ• Corporate office & distribution• 5,100 employees • 9.3M SF campus
Westgate Marketplace814K SF retail
Corporate Offices• 2,300 employees• 247,000 SF campus
Downtown OKC15 min drive
Home Values $200K - $250KHome Values $200K - $250K
Industrial CorridorIndustrial Corridor17M SF industrial17M SF industrial
Sorting Center
• $3M, 300K SF campus• Amazon employs 5K metro-wide
John Kilpatrick TurnpikeJohn Kilpatrick Turnpike
SW 15th St
SW 15th St
Mustang North Middle School / Mustang Creek Elementary Shool
of Yukon
Mustang Creek Crossing• 260-acre mixed use development• First storefront delivered in 2020• 400K SF retail, 500K SF office, 1,200
residential units, 300 hotel rooms, 1,000 seat music venue, 10-acre park
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
CHAPEL RIDGE OF TINKER
Current Unit Mix Unit Description SF
Proforma Unit Mix1
2020 Max LIHTC Rents2
JLL Est. 2021 Max LIHTC Rents2
In-Place Lease Rents
JLL Proforma Market Rents
JLL Proforma Annual Market
Rent
8 1 Bed, 1 Bath, 60% AMI 673 3 $759 $759 $640 $750 $27,000
8 1 Bed, 1 Bath, Market 713 13 -- -- $699 $750 $117,000
65 2 Bed, 2 Bath, 60% AMI 912 24 $910 $910 $714 $850 $244,800
27 2 Bed, 2 Bath, Market 912 68 -- -- $748 $850 $693,600
20 3 Bed, 2 Bath 60% AMI 1,085 7 $1,050 $1,050 $928 $1,025 $86,100
20 3 Bed, 2 Bath, Market 1,085 33 -- -- $918 $1,025 $405,900
4 4 Bed, 2 Bath, Market 1,288 4 -- -- $1,036 $1,100 $52,800
152 944 152 $927 $925 $779 $893 $1,627,200
Property Name Chapel Ridge of Tinker
Address: 5707 SE 48th Street
City, State: Oklahoma City, OK
Year Built: 2005
Number of Units: 152 units
Start of Decontrol: October 2020
Termination of Affordable Restrictions: October 2023
1) Proforma Unit Mix takes into account affordable units converting to market-rate from January 1, 2021 through June 30, 2021. 2) Max LIHTC rents take into account applicable utility allowances.
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
Midwest City Town Center Plaza673K SF retail
Downtown OKC15 min drive
Jarman Junior High School
of Tinker
Midwest City Elementary Tinker Air Force Base• MSA’s largest employer with 26K
military and civilian employees• $4.83B economic impact
• 3,200 employees in aerospace• Adding 300 new jobs and a
$20M, 61K SF facility in 2020
Parkview ElementaryS Sooner RdS Sooner Rd
SE 59th StSE 59th St
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
PROPERTY LOCATIONS
Tinker Air Force Base
Will Rogers World Airport
OKLAHOMA CITY
§̈¦44
§̈¦40
§̈¦35
§̈¦35
ST102
ST152
ST3
ST92ST37
ST9
ST74
ST102
Chapel Ridge of Yukon
Chapel Ridge of Tinker
Crown Ridge of Edmond
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EXECUTIVE SUMMARY | OK3 PORTFOLIO
TINKER AIR FOR CE BASE
CHAPEL R IDGE O F T IN KE R
UNIVERSITY OF CE N T RAL O KL A HOMA
CROWN RIDGE OF EDMOND
DOWNTOWN OKC
CHAPEL RIDGE OF YUKON
BRICKTOWN OKC
OKL AHOMA STATE CAPITOL
HOBBY LOBBY CORPORATE HEADQUARTERS
3344 Peachtree Rd NE Suite 1200 | Atlanta, GA 30326
www.us.jll.com/capitalmarkets
Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”), a licensed real estate broker, has been engaged by the owner of the property to market it for sale. Information concerning the property [properties] described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser. JLL and owner disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2021. Jones Lang LaSalle IP, Inc. All rights reserved. **The outbreak of the COVID-19 virus (novel coronavirus) since the end of January 2020 has resulted in market uncertainty and volatility. While the economic impact of a contagion disease generally arises from the uncertainty and loss of consumer confidence, its impact on real estate values is unknown at this stage. Given the prevailing domestic and global uncertainty arising from the Coronavirus, we recommend that the intended recipients of this information regularly seek our guidance.
Contact information
Michael FoxSenior DirectorAffordable Housing+1 404 942 [email protected]
Steven HahnSenior DirectorDallas Multi-Housing IA+1 214 692 [email protected]
PRIMARY ADVISORS
C.W. EarlySenior Managing DirectorAffordable Housing+1 972 646 [email protected]
Wilson BauerDirectorCapital Markets+1 469 232 [email protected]
David LottVice PresidentAffordable Housing+1 727 437 [email protected]
Melissa BloemAssociateAffordable Housing+1 404 942 [email protected]
Cody DoolinAssociateAffordable Housing+1 512 593 [email protected]
Daniel NaumannAnalystAffordable Housing+1 404 460 [email protected]
Clifford MurphyAnalystAffordable Housing+1 404 460 [email protected]
ANALYTICAL SUPPORT
CAPITAL MARKETS ADVISORS
Doug ChildersSenior Managing DirectorAffordable Housing+1 404 942 [email protected]
Michael FurrowDirectorAffordable Housing+1 512 368 [email protected]
ADDITIONAL AFFORDABLE HOUSING TEAM MEMBERS
Robert DmytrykBroker of Record+1 858 699 [email protected]
BROKER OF RECORD