The Pointe at North Penn

Description

Newmark has been retained as Exclusive Listing Agent for the sale of The Pointe at North Penn in Edmond, Oklahoma. A 134-unit community built in 2014, the subject property’s direct access to North Pennsylvania Avenue and Northwest 192nd Street / West Danforth Road provides convenient access to top employers, retailers, and outdoor recreation across Edmond and the wider Oklahoma City MSA including the Quail Springs retail corridor, the University of Central Oklahoma, and Integris Health Edmond.

The Pointe at North Penn features a large 959-SF average unit size with spacious two-, and three-bedroom floor plans: all set in an open greenspace offering residents a relaxing lifestyle with quality amenities. All units feature black appliance packages and full-size washer/dryer connections, with select units upgraded with faux-wood flooring throughout and a premium upgraded unit featuring shaker cabinetry and quartz countertops. Community comforts include a community pool, clubhouse with resident lounge and business center, dog park with agility course, and a paid membership to nearby Body Language Gym and Personal Training Studio, featuring childcare and 24/7 gym access.

FAVORABLE DEMOGRAPHICS
Significant barriers to entry exist for new multifamily construction in the City of Edmond due to zoning hurdles and restrictive covenants, supporting a superior competitive position for the subject property. A recent housing study commissioned by the Edmond City Council estimates that 64% of Edmond residents cannot afford the average new home price in the city, and 75% of Edmond’s workforce lives outside of the city and commutes to work each day. Current interest rate and debt trends favorably position the subject property when compared to traditional homeownership: Based on Edmond’s May 2024 median single-family home sale price of $356,000 and 30-year conventional financing, an area homebuyer can expect an estimated
monthly payment of $2,340 per month with over $87,000 due at closing, compared to The Pointe and North Penn’s average monthly asking rent payment of $1,495 for a three-bedroom, two bathroom residence. *

STRONG FUNDAMENTALS
Located in one of Oklahoma City’s most affluent submarkets, the City of Edmond boasts a median net worth of $241,777 (nearly double the MSA median), with average annual household incomes exceeding the MSA average by over 44% (ESRI). Edmond’s average lease rents also rank near the top of the MSA with minimal construction of submarket comparable assets forecast through 4Q 2025 (CoStar). 2Q 2024 QTD metrics show average lease rents and occupancies in Edmond exceeding MSA averages by 6% and 6.2% respectively.

PROVEN VALUE-ADD OPPORTUNITY
A review of market-rate submarket assets of similar vintage shows significant average monthly lease rent deltas with the subject property: averaging over $230 per unit. Located one mile west of The Pointe at North Penn, 35 Degrees North’s average monthly lease rents are over $370 per unit higher. Demonstrated monthly effective rent premiums are also evident for units receiving minimal upgrades including fixtures and faux-wood flooring throughout, ranging from $93 per unit to $213 per unit for select one- and two-bedroom units.

The Pointe at North Penn