Market Overview:
Cushing, OK is located 70 miles northeast of Oklahoma City and just 20 miles east of Stillwater, which is home to the main campus of Oklahoma State University. Apartment vacancy rates in this submarket are sub 5% as a result of low apartment housing inventory and limited supply in the pipeline. Additionally, Cushing is one of the largest oil storage locations in the country.
Property Description:
Eastbrook Apartments is comprised of 9 single story multifamily apartment buildings. The community features a well balanced mix of one-bedroom, two-bedroom, and three-bedroom apartments totaling 22,000 rentable square feet. A portion of tenant rent payments are government subsidized as specified in the Housing Assistance Payments (HAP) Contract.
The Opportunity:
Eastbrook will provide investors with the opportunity to acquire a stabilized asset in a supply constrained market. While the property is subject to affordable restrictions through 2032, existing contract rents are substantially above market. And given the nature of the HAP contract, Eastbrook has zero exposure to market rent reductions for the term of the contract providing investors with a truly risk adjusted yield. This investment should generate solid, double-digit returns to investors each month.
