Hopkinsville, KY – Birmingham-based Oakley Group, a prominent multifamily real estate investment firm, has acquired Griffin Gate Apartments, an 80-unit apartment community situated on more than 16 acres at 300 Griffin Gate Drive in Hopkinsville, Kentucky.
CEO David Oakley said the property was purchased from Griffin Gate HKY, LLP, a Georgia limited liability partnership, for $10,800,000. Tyler Mayo, managing director of Sunbelt Multifamily Advisory Group brokered the transaction.
A new fixed-rate, 10-year Fannie Mae loan was placed through Lument by Chad Hagwood and Brandon Pate of their Birmingham office. “We are excited to own this asset. Our going-in CAP rate is 6.5 percent which is fantastic,” Oakley said.
Griffin Gate, a two-story brick structure with architectural shingle roofing on a low-density site, features ample green space, a clubhouse, pool, dog park, and walking trail all completed between 2011 and 2017. Located 30 minutes from Downtown Clarksville, TN its easy access to I-24 provides connectivity to major area employers, healthcare, and higher education.
Oakley’s Chief Investment Officer Lou Davis explained why the property got his attention: “Griffin Gate has shown consistent occupancy levels and rent growth every year. Plus, we anticipate the Hopkinsville submarket to strengthen on the heels of recent announcements that three major employment drivers in the electric vehicle battery industry are coming to the area. This purchase is a tremendous opportunity to achieve outsized cash-on-cash returns for our investors.”
Oakley said plans for the property include light enhancements to the already well-appointed interiors, a full exterior paint job, as well as installation of a fitness center and an outdoor pavilion with a grill station. The one-two- and three-bedroom apartments averaging 1,101 square feet were more than 90 percent occupied at the time of the sale.
NextGen Management will continue as an onsite management firm for the property, according to Oakley.
About Oakley Group
Oakley Group (OG) is a private equity real estate investment firm specializing in the acquisition and re-positioning of existing multi-family properties throughout the Southern United States. With over 50 years of experience in all aspects of multifamily real estate, as an owner-operator, the group repositions physically distressed and under-managed properties.
Experience enables them to identify opportunities, manage diligence, and reposition investments through physical improvements, re-branding, operational efficiency, and, ultimately, disposition. OG’s current portfolio of over 20 assets includes development land, office, historic, single-level, garden-style, multifamily, and mixed-use assets.
