Foreclosure looms over an apartment complex in Oklahoma City

The Alora apartment complex, located at 6303 NW 63rd St, Oklahoma City, faced significant challenges last year that pushed it toward a foreclosure process that would greatly impact thousands of owners.

Under pressure from the administration to make the necessary repairs and comply with the safety codes required for all city housing, the owners requested additional time to address these critical repairs.

In addition to requesting extra time to carry out all the legally required repairs, Mike Callaghan of Exact Capital, the real estate developer of the complex, proposed upgrading the apartments by installing solar energy panels to help reduce utility costs for all apartment residents.

In his proposal, he explained that since the building’s roof is flat, it is perfectly suited for solar panels, which will optimize and efficiently supply each apartment with its own solar cell.

The Alora apartments were designed to provide homeownership for individuals earning less than 60% of the city’s median income. If the shift from conventional energy to solar is made, tenants will experience a significant reduction in utility expenses. This would mean that “each tenant will have their own mini power plant,” Callaghan explained.

Once The Alora Apartments were repurchased by two investment firms from outside the state of Oklahoma, their administrators committed to investing around $30,000 in each of the 850 units for improvements. However, by the summer of 2023, the complex was still in poor condition, and tenants complained to management due to safety concerns, as several areas and apartments in the building lacked security and were occupied by squatters, further deteriorating the housing conditions.

After numerous complaints to the city, the administration was advised to take legal action against the property owners to force them to make the repairs or demolish the damaged properties. However, as this could harm their future ability to obtain housing mortgage loans, the Oklahoma City council instead opted to grant them additional time to complete the repairs.

With this extra time granted, the real estate developers are working hard and have so far secured half of the total funding needed for the necessary renovations and repairs. They are still seeking more lenders to achieve 100% of the construction loan.

According to the studied budget, each unit in The Alora will cost approximately $65,000, as in addition to interior modifications, these new changes include solar panels and landscaping improvements for the complex.

If the terms agreed upon with the Oklahoma City administration are not fully met, this large complex will face foreclosure, significantly affecting the owners’ assets.

Foreclosures available:

Oklahoma City: 120 foreclosures

By Elias DaSilva | September 17, 2024.