We seek to generate above-market, risk adjusted returns; and we do this through a disciplined approach that focuses on revenue generation, optimizing operating margins, and capitalizing on multifamily investment appreciation.
Simply put, we understand value, which enables us to identify multifamily properties prime for new management or market repositioning. In addition, we are deeply rooted in a conservative approach. We strictly adhere to the tenets of historically sound investment principles, which we believe to be timeless, despite market trends.
Our core competency is execution. We are true operators —
involved in every key functional decision. Take a look at how we work.
Case Study: Trails at Lakeside Apartments
Property Name: Trails at Lakeside Apartments
Location: Indianapolis, Indiana
Asset Type: Class B multifamily property
Size: 208 units
Transaction: Acquisition and repositioning of distressed Class B property
Core Competency: Distressed asset turnaround
The property was operationally distressed and acquired out of receivership as a high leveraged transaction. At the time of acquisition, the existing lender modified the in-place loan that was assumed by the partnership and Oak invested significant capital into the property to cure deferred maintenance and enhance its aesthetic appeal in the market. Additionally, Oak improved property operations, reduced expenses, and put in place a new marketing strategy. Over the initial twelve months of ownership, Oak completely repositioned the asset in the market.
Within 18 months, total revenue grew more than 11% enabling Oak to refinance the existing high interest rate loan resulting in a reduction in annual debt service and significant increase in cash flow to ownership.
Case Study: JeffJack Apartments
Property Name: JeffJack Apartments
Location: Chicago, Illinois
Asset Type: Class A+ luxury multifamily development
Size: 190 units
Transaction: Preferred equity investment in new construction, high-rise development in the West Loop neighborhood of Chicago
Core Competency: Underwriting and sourcing of high quality investment opportunities
The transaction provided an opportunity to invest preferred equity alongside the developer of a new construction luxury multifamily rental high-rise in the West Loop neighborhood of downtown Chicago. The developer had committed significant equity to the development and was looking for a preferred equity piece to round out the capital stack. The developer was attracted to Oak’s asset management and operations expertise, as well as its ability to be nimble and move quickly.
While the investment represents a departure for Oak from its core business, the team’s entrepreneurial nature and desire to seek out attractive investments in the residential space drew them to the opportunity. They were able to underwrite the transaction and determine it to be a sound investment.
Construction began in January 2014 and the building was completed in April 2015 on time and within budget. The developer subsequently sold the asset to an institutional fund advisor one year earlier than originally expected generating attractive returns to Oak’s investors.
Case Study: Station at Mason Creek Apartments
Property Name: Station at Mason Creek Apartments
Location: Houston, Texas
Asset Type: Class A multifamily property
Size: 291 units
Transaction: Value-Added improvements to modernize enhance competitive position and increase value of multifamily property
Core Competency: Execution of value-add strategies: capital investment, marketing strategies, and implementation of ancillary income programs
The property represented a classic value-add scenario being well-located in one of the strongest demographic areas of Houston and in need of its first major modernization since its construction. Oak repositioned the property in the market through capital investment on the exteriors of the buildings including new paint and landscaping enhancements, as well as improvements to the amenities and full interior renovation of the existing clubhouse. Oak also upgraded the interior finishes in the units with new appliances, faux wood flooring, refinished cabinets and countertops, and upgraded lighting and hardware.