Each property was a Real Estate Owned (REO) asset, meaning they were previously foreclosed upon and were bank owned. The Resource Real Estate Opportunity REIT purchased Park Forest for $2.05 million and Foxwood for $2.27 million.
Constructed in 1972, Foxwood is a 220-unit multifamily residential community comprised of 30 buildings containing over 212,000 rentable square feet. Tenant amenities include a swimming pool, clubhouse/leasing office, playground, fitness center and tennis courts. Foxwood is located in the southeast submarket of Memphis known as the Bill Morris Parkway “High-Tech Corridor,” and it is in close proximity to the Nonconnah Parkway and I-240. FedEx World Headquarters, Lenox Corporate Park, the Nonconnah Technology Corridor and recent additional employers such as Technicolor and Nike all call the area home.
Park Forest is a 216-unit multifamily residential community that was constructed in 1974 and is comprised of 27 buildings containing over 158,000 rentable square feet spanning across 8.4 acres. Tenant amenities include a swimming pool, clubhouse/leasing office, playground and fitness center. It is located in the southeastern portion of the city and in close proximity to a major shopping center, Midwest Regional Hospital, Oklahoma City Community College, Boeing and Rose State College. The largest employer in the state, Tinker Air Force Base, is also in close proximity.
Resource Real Estate Opportunity REIT plans to invest additional capital to improve the overall condition of the properties in order to bring all units to leasable condition, stabilize the occupancy rates and make the properties cash-flow positive. Exterior painting and landscaping will be done, and significant upgrades will be made in an effort to enhance the appeal and marketability of each property.
The acquisitions of Park Forest and Foxwood – both distressed multifamily REO properties experiencing operational and capital deficiencies and in need of stabilization – are good examples of the type of properties that the Resource Real Estate Opportunity REIT seeks to acquire.
Resource Real Estate currently has an ownership interest in and manages a real estate portfolio with an aggregate value of approximately $1.7 billion, which includes approximately 24,000 apartment units and more than 500,000 square feet of office, retail, industrial and hotel space located throughout the United States. Resource Real Estate has over 525 employees with primary offices located in Philadelphia, New York City, Los Angeles, Denver and Omaha.