Arizona firm buys apartment blocks for $22 million

Journal Record, The (Oklahoma City), Oct 5, 2004 by Ted Streuli

An Arizona company has added 896 apartments to its Oklahoma City portfolio, likely making NCH Corp. the second-largest multifamily property owner in the city.

NCH bought both the Highland Ridge and Highland Glen apartment complexes for a combined $22 million. The two complexes are virtually identical and are across the street from one another on N. Pennsylvania Avenue, just north of NW 122nd Street. Both properties were built in 1984 and together have 95 two-story buildings. The twin complexes include 448 one-bedroom units, 392 two-bedroom apartments and 56 three-bedroom dwellings. Amenities include four outdoor swimming pools, two indoor pools with Jacuzzis, an exercise room, tanning beds and lighted tennis courts.

NCH paid 86.6 percent of the $25.4 million asking price, or $24,554 per unit. The property had been on the market since late March.

They were around 79 percent occupied when they closed, said broker William T. Forrest of CB/Richard Ellis, who represented the seller, FSF Highland Ridge/Highland Glen Associates.

Half of the units are one-bedroom, one-bath, 744-square-foot apartments that rent for $419 per month. If full, the combined properties would generate an estimated income of $430,304 per month. Total annual revenue was estimated at $5.2 million, with operating expenses of $2.5 million.

The buyer is expected to complete substantial renovations, especially on the exterior and parking lots.

Forrest estimated that the deal made NCH the second-largest owner of apartments in Oklahoma City with 15 properties containing 3,243 units. That would likely put them second to Tulsa-based Case and Associates. Forrest said the Tucson, Ariz., company first purchased property here about 15 years ago and most recently bought the Bluff Creek apartment complex at 5757 W. Hefner Road. NCH purchased Bluff Creek in 1999 for $9.5 million.

They've always done well here and they feel good about our marketplace, Forrest said.

The company also owns property in Arizona and Florida, Forrest said.

An NCH spokesman did not return telephone calls Monday.