MANSIONS SOUTH
Ideal Value-Add Opportunity with an Ability to Significantly Enhance Rents
Opportunity to Recapture Some Expenses Further Enhancing the NOI
Purchased at Discount Despite Highly Competitive Market
Amenities On-Site Provide Further Increased Valuation
Extremely Popular Growing Submarket with Prime Location Near Downtown
Highly Oklahoma City Market with Increasingly Diverse Employer Base
Growing Technology, Aerospace, Service and Manufacturing Positioning for Further Growth
Consistently Ranked High for Multiple Categories of Business & Lifestyle
Year-over-Year Rent Growth of 8.2% (CoStar) with Decreasing Vacancies
45% Discount in Rents Relative to National Average Gives Significant Potential Upside
Increased Household Income 15% in 5-Years (CoStar)
Targeted Fund Returns
Cash-On-Cash Yield (Initial)
6.0% – 8.0%
Cash-On-Cash Yield (Stabilized)
8.5 - 10.5%
Target IRR
16.0 - 18.0%
Equity Multiple
2.3 - 2.7x
About MANSIONS SOUTH
Mansion South’s strong location and superb submarket fundamentals highlighted by exceptional year-over-year asking rent growth (12.8%, CoStar) present investors with a demonstrated opportunity to push rents and increase revenue. A limited infusion of capital for renovations is clearly supported by market-comparable assets, which average monthly lease rent deltas of $0.12 PSF higher than the subject property.
Proactive capital investment will net the combined benefits of increased revenue, high-quality tenants, sustained resident retention, and narrowed lease rent delta compared to submarket competitors.
Oklahoma City’s diverse business landscape consists of major employers in aerospace, biosciences, manufacturing, healthcare, education, finance, insurance, transportation, construction, and telecommunications. Oklahoma City’s dynamic Tech Sector accounts for an estimated $2.7 billion in direct economic impact and employs over 39,000 people.
These include a growing base of private companies headquartered in the Oklahoma City MSA. Love’s Travel Stops ranks 17th on Forbes’ list of largest U.S. private companies, software giant Paycom ranks 18th among Fortune’s 100 fastest-growing companies and Hobby Lobby, BancFirst, INTEGRIS Health, and Love’s Travel Stops are all included in Forbes’ 2020 list of America’s Best Employers.
The Oklahoma City Metro posted a March unemployment rate of 4.0%, one of the lowest in the nation among large metropolitan areas (BLS).
Oklahoma City-based Drov Technologies is revolutionizing the trucking industry. Construction is underway on Boeing’s new $20M B-52 Modernization and Sustainment facility at Oklahoma City’s Tinker Air Force Base. With over 26,000 employees, Tinker generates an annual economic impact of $4.83B.
Online auto retailer Carvana is planning a 102-acre vehicle inspection and reconditioning center near Will Rogers Airport. Amazon’s presence in Oklahoma City is expanding again with a new 1 million-SF sorting facility immediately north of its 2.5 million-SF OKC Fulfillment Center. The new facility is projected to add 1,000 jobs to the 5,000 workers already present.
OKC has been ranked as the number 1 for the easiest place to do business (CoStar), the lowest cost of living among large metros (C2ER,2021), and best city for street art (USA Today, 2021). It is number 3 for the lowest cost of doing business (Moody/s, 2021), number 9 for best city to start a career (Zippia, 2020), in the top 10 for biggest millennial boomtowns (MagnifyMoney, 2019) and top 20 for best run cities in America (WalletHub.com, 2020).