Summary

Silver Springs Apartments is a 272-unit class B apartment complex located in Tulsa, OK.  Constructed in 1984, Silver Springs Apartments consists of twenty-five two-story residential buildings and a management office along with a clubhouse.  Community features include two swimming pools and a luxury clubhouse with kitchen, bar, and billiards.  There are large water features throughout the property and among the buildings, which give The Springs Apartments a park-like atmosphere and provide the property with a unique identity and enhanced curb appeal.  The Property is considered to be part of the South Tulsa apartment sub-market.

The long-term outlook for Tulsa’s apartment market remains positive, as the ability to absorb the impact of weaker housing and credit tightening will enable the metro area to outperform the national economy for the in 2009.  In fact, the overall rate of local job growth is not expected to come down to the U.S. average until 2013. Spillover demand is also expected to rise from instability in the for-sale market. Tightening lending standards and market uncertainty are keeping more buyers in apartments, a trend likely to continue.

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 Operator will implement a capital improvement program designed to enhance the long term value.  At the time of acquisition, the property was 75% occupied in a submarket which was 94% occupied.