Summary

Arbor Lake is a 152-unit class B apartment complex located in Oklahoma City, OK.  The property is located in Northwest Oklahoma City, the submarket at the forefront of revenue and apartment market growth, which is aided by rising demand generated by healthy regional economic conditions and a softening for-sale housing market.

Job growth in Oklahoma City remains robust, as employers will create the most new positions in 2007 of the last four years and marking the fourth consecutive year of employment growth. Tightening lending standards and market uncertainty are keeping more buyers in apartments, a trend likely to continue through 2007 and well into next year.

The investment profile consisting of a combination of income and capital appreciation is centered around capitalizing on what is currently a mismanaged and neglected apartment complex.  The current owner/manager is located out-of-state and is unable to efficiently supervise the operations of the Property.  Originally designed as condos, the benefits of this condo design are floor plans, which have the potential to out-compete traditional rental product in this submarket.  The Operator will initiate a renovation program designed to maximize rental rates and bring a growth in the resident retention rate. Current market rents in comparable assets in the subject property’s submarket are approximately $75-$100 per unit higher in rent for similar unit floor plans.  The Operator projects rents of the property are to increase by 10-15% in the first two years upon acquisition.