OKC Value-add Multifamily Project

Here is a great example of a value-add project. The investors have acquired a distressed investment property with the goal of repositioning.

Mark Spradlin of Fort Smith, Ark., paid $1.65 million for the vacant Cypress Ridge Apartments, 1209 W Hefner Road, with plans to spend $3.8 million to bring the 256-unit property back into service. It is Spradlin’s first investment in Oklahoma City, said Mike Buhl of Norman-based Commercial Realty Resources Co., who handled the sale.

Cypress Ridge Apartments, at 1209 W Hefner Road in Oklahoma City, are shown. PHOTO PROVIDED BY CRRC

 The seller was Cypress Ridge OKC LLC, led by David Darley and Joseph Broadbent of Salt Lake City, Utah. They had acquired the property for $750,000 in September 2010, after nearly a decade of mismanagement and lack of capital improvements. Cypress Ridge, built in 1971, has 205,851 square feet in 32 two-story buildings.

“The buyer viewed this acquisition as a ‘value-add’ opportunity where he can create value through renovation,” Buhl said. “The buyer will seek to capitalize on the success of the nearby Britton Crossing Apartments at 413 W Britton Road, in this same northwest submarket. The 256-unit Britton Crossing property was acquired for $2.3 million in May 2008 and also underwent a substantial rehab.

“Britton Crossing has been transformed to one of the nicer communities in this submarket and is now reaching full occupancy. The renovations at Cypress Ridge will follow this same pattern of providing above average units in a clean and safe rental environment.”