Wynmor Management, LLC, a NY-based private equity investment firm, announced the purchase of Riverchase Apartments, an apartment complex in Oklahoma City, Oklahoma for $13.6 million.
The multi-family property, located at 11239 N Pennsylvania Ave, Oklahoma City, Oklahoma features ten, three-story rental buildings totaling 252 units and an additional building that serves as an office. The complex contains 217,500 rentable square feet and was built in 1971.
Wynmor plans to upgrade the majority of units at the property and implement institutional-style property management. The development features covered parking, a pool, basketball and tennis courts.
The seller is a Texas-based company, Casa Claire Apartments, LP.
Wynmor, along with its investment partners, invested its own equity while the remaining capital — $12.9 million required to acquire and renovate the property — came from Bedrock Capital Associates as an acquisition and renovation loan with a three-year term.
According to Wynmor’s Managing Director Josh Bernstein, Wynmor has tracked Riverchase Apartments since 2018. During the marketing process the property received national interest with numerous written offers from a dozen states. Wynmor’s winning bid was not the highest offer, but Wynmor’s ability to execute and close the complicated transaction won out over the other bidders.
“Oklahoma City has a deep-rooted history in the oil and gas markets, while recently the employment opportunities have diversified and the city has become an attractive place for remote workers,” said Bernstein. “The acquisition price of approximately $54,000 per unit represents a significant discount to replacement cost and to recent market comparables.”
According to Bernstein, properties located in the submarket of a similar vintage and the same style are on the market for prices significantly higher than the price paid for Riverchase Apartments. “Our acquisition price is significantly lower than the pricing being achieved by comparable properties today,” added Bernstein.
“This deal represents an opportunity to acquire a footprint with scale in a market that we believe is on the right trajectory,” added Bernstein. “We believe the combination of the acquisition price and the in-place cash flow enables us to have a margin of safety.”
Bernstein said Wynmor is actively acquiring multifamily complexes in Oklahoma and surrounding states.
This is Wynmor Management’s second acquisition in Oklahoma and is part of the pipeline of many future acquisitions to come. In May, 2020, Wynmor purchased London Square Apartments, a 173-unit apartment complex in Tulsa for $6.6 million. “Our national experience in acquiring and improving garden style multifamily allowed us to analyze and understand the opportunity at London Square.”
Wynmor is actively working to build a footprint outside of major coastal markets after changes to rent laws in those markets over the recent years. “Our partners have strongly endorsed our acquisition strategy, team, diligent planning and execution of our business plan,” added Bernstein.
Derek Wilson of Cushman Wakefield’s Oklahoma City office represented the seller.
