Somerset Park at Union

Tulsa, OK

Date Acquired: September 1, 2004
Purchase Price: $13,938,000
Date Sold: June 30, 2008
Sales Price: $17,457,000
Location: Tulsa, Oklahoma
Leveraged IRR: 14.4%

Somerset purchased this 424 unit, Class-B multi-family property (formerly known as Glen Eagles) in Tulsa in an off market transaction. In this direct purchase, Somerset was able to achieve an above market yield by working with its’ property manager, LEDIC Management, to implement a “value-added” strategy of capital improvements to common areas (clubhouse renovation, new signage, parking lot re-paving, swimming pool area upgrade and site drainage corrections); and unit interiors (counter tops, appliances, hardware & fixtures, etc.). The property was renamed Somerset Park at Union. On-site management was able to upgrade the resident profile through implementation of an improved application screening process. The combined management/capital expenditure program executed by Somerset and LEDIC significantly improved operations at the property and enabled it to be sold at an attractive purchase price in the challenging sales environment of 2008.