The OKC Real Estate Investment News January 2008

The purpose of this newsletter is to keep you updated on Oklahoma City as it relates to the economy, special projects, and the continued success of single family homes.

Economic News

Oklahoma City is preparing a 165 million dollar bond issue for improvements to the Ford Arena that would bring it to the top level of NBA Franchise facilities. This is in anticipation of the relocation to Oklahoma City of the Seattle Super Sonics and Storm Pro basketball teams. On December 11th, Oklahoma City passed a 835.5 million dollar bond issue for roads, parks, sidewalks, and fire and police expenditures. This is on the heels of a 249 million dollar bond issue for schools. Forbes Magazine just came out with its review of 100 major cities. Oklahoma City was the 10th best city in the U.S. for job growth. Oklahoma City was considered the 13^th best city for business, the 4^th least expensive city for the cost of doing business, and the No. 1 city for income growth. A recent study found that we are the No. 5 city for percentage growth of technology jobs, and a recent Florida report put us in the top 10 for growth in bio-science jobs. A report in Money magazine in May showed that Oklahoma City had the second highest rise in the U.S. for median home sales, and Forbes in June called us one of the 11 "bust free" markets. We take great pride in the rising affluence of our area, and we will share with you our new 2006 Economic and Demographic report in the next few weeks. Recent developments include the first location in the U.S. of a mainland Chinese auto manufacturing company. They are bringing in around 200 executives and building a plant one hour to the south of OKC. Cox Communications is adding nationwide cellular service to their bundle of cable, internet, and wired phone service. They are hiring 1000 employees for the headquarters which is in OKC. 

 Work continues on the Tower! The updated web site is available for viewing. You can use the www.founderstower.com URL to access it.  The first floor is now finished and floors 3 to 7 have occupancy permits. Floors 8 to 15 will be finished February to April, and the rest in May. Excavation of the new underground parking garage is supposed to start in the next 45 days. Two models have been decorated and is opening for the public now. Significant marketing and promotion has started and negotiations are ongoing with potential local buyers at this time. Four units have already closed by local residents. 

The East Village in Norman

Leasing of residential units have been brisk despite the cold weather, and 11 units without investors have one year lease commitments. If you are interested in a leased unit for purchase, Sooner is offering 2 discount points for a rate buy down to go with the already leased unit. Sooner Traditions has commitments for all 27 retail locations on the first floor of the front three buildings. The new completion time for Phase One is now, and Phase Two should be June of 2008, and Phase Three should by December of 2008. Currently, interior work is completed on Building One, and the Occupancy Permit is just beng granted. Model units will be open the end of October, and extensive landscaping will be in by the end of this month. The second building is currently being framed, and the third building foundation is about to begin. Two new floor plans for the second phase of the town homes will be available, and they will also be lower in price. Norman continues to be the fastest appreciating city in the greater Oklahoma City area. We will be coming to the advanced seminar in San Francisco in December. If you are not coming to that seminar, please call us and we will put you on the list to call for those of you who would be interested in these outstanding properties starting at $75K that are the closest new properties to the main University of Oklahoma campus. FYI, we currently have 9 units with one year leases that are unsold to investors. We will offer these to ICG investors at the original price and have an incentive package for a quick close. Our appraisals on current sales are coming in higher that the original price, and Building Two is up $12 per SF over Building One.

 Single Family Homes

The market for single family homes has continued to be strong going into 2008, and inventories of active listings unlike other parts of the U.S. is historically in balance. Appreciation in the third quarter was 2.39% and the 4th quarter numbers should be in soon. It is estimated that appreciation for the year could top 7% and a higher rate is not out of the question. Most cities are trending downward so this is a significant number considering that for the country, this has been one of the worst quarters in housing history. The rental market has been hot for single family. Out of approximately 340 homes we have closed for investors since March 2005, 96% were occupied at the end of June and days on market averaged 46 days.  We are almost sold out of new opportunities, but we have some new excellent properties still ready for you.