By having local real estate experts with in-depth market knowledge, Black Creek has a successful track record of identifying well-located assets in markets that may have been overlooked by other investors.
Historically Tulsa, OK has not been considered a primary market by most retail real estate investors, despite its thriving economy, diverse employment base, growing population and low cost of living. By monitoring local market fundamentals, Black Creek knew it could create value in this secondary market if the right opportunity was found – a premium retail center with meaningful rent growth.
In 2015, Black Creek’s retail team identified this opportunity with the acquisition of Yale Village, a newly developed, grocery-anchored property in a flourishing suburb of Tulsa. Anchored by one of three Whole Foods locations in the state, the property is in a high-traffic intersection near one of the area’s most desirable neighborhoods.
With limited competition for the grocer and strict development regulations, Black Creek felt confident that the property would create value as at the time of acquisition rents were approximately 20% below comparable rates in the market.
By using a granular and disciplined approach, Black Creek purchased the Class A property in a secondary market where others passed. By knowing the market down to the traffic intersections, the firm was able to pinpoint an asset that was set for success, and one that continues to deliver strong returns today.
Since acquisition, the property has experienced 10 percent rent growth with additional high-quality tenants joining the shopping center driving an increase in revenues.
Yale Village is home to one of only three Whole Foods locations in the state of Oklahoma.