RRA Capital Provides $20M Acquisition Loan for OKC Apartment Complex
Financing will go toward renovating a 252-unit apartment complex
GreenLite Holdings, a Tempe, Ariz.-based real estate investment firm, has secured a $20.6 million acquisition loan to renovate a 252-unit multifamily apartment property in Oklahoma City.
RRA Capital, a real estate investment firm headquartered in Phoenix, provided the financing, a nonrecourse, interest-only loan with a 30-month initial term and option for a six-month extension. It’s unclear who brokered the debt.
Ted Van Brunt, chief investment officer at RRA Capital, told Commercial Observer that his firm had previously worked on another Oklahoma City project with GreenLite Holdings, and this acquisition was attractive to his team based on the underlying fundamentals.
“It checked a lot of boxes — we’re getting in on a good basis and the story behind it was good: the sellers were selling and were looking to get out of the deal with certainty,” Van Brunt said.
“We understand the market, the players, and have a good business plan with good risk to mitigate on the downside.”
Jonathan Lewis, founder of GreenLite Holdings, said in a statement that the deal with RRA Capital came together amid a challenging environment for commercial real estate transactions.
“RRA was able to move exceptionally quickly and stepped in when we needed them most,” Lewis said. “As a result, we were able to secure a loan that will allow us to enact our business plan as originally intended.”
The name of the apartment complex was not disclosed, but the address is the same as Highpoint Creek Apartments near Oklahoma City’s Penn Park neighborhood.
Located at 11239 North Pennsylvania Avenue in Oklahoma City, the property was constructed in the 1970s and offers one- and two-bedroom units. Lewis’s team at GreenLite Holdings plans an extensive renovation, including refashioning the on-site pool and clubhouse, improving in-unit appliances, adding new lighting, and swapping out the flooring, plumbing and windows.
Van Brunt said the sponsor plans to resell the property within two years once the renovations help achieve higher rents and greater occupancy.
“It’s an underperforming asset in the submarket, and the goal is to put it above average in terms of the rents and occupancy that we’ll be able to achieve after all the improvements are done,” Van Brunt said. “The goal is around a $300 [per unit] increase there, and the sponsor’s plan is to sell it using the same investment sales broker he used sometime in the next 24 months.”
GreenLite Holdings specializes in Class B and C multifamily apartment properties. The firm’s portfolio includes a 144 unit Class C apartment complex in Tucson, Ariz., and a 224-unit Class C apartment complex in Arlington, Texas.
Founded in 2008, RRA Capital has originated more than $1 billion in commercial real estate bridge loans since its inception. The firm focuses on value-add, distressed and middle-market loan opportunities across national markets, according to its website.
Brian Pascus can be reached at firstname.lastname@example.org.