JRK Continues Buying Spree with 2 More $100M Multifamily Purchases
It is also planning to spend another $1.5 billion to $2 billion on acquisitions.
JRK Property Holdings is on a buying spree and has acquired two additional multifamily communities for almost $100 million.
The real estate investment firm did not specify the price of each individual property – but one of the purchases is in Woodbury, Minnesota at 2150 Vining Dr, which spans 287,975 square feet. First delivered in 1991, the townhome community with 23 residential buildings, features 224 units, offering one to three-bedroom spaces. Plus, the property, known as Woodbury Park, has some extras including outdoor fire pits, a fitness center, a community clubhouse, outdoor grilling stations, and a pool. The community was 99 percent occupied, as of the closing time of the acquisition.
JRK referred to the submarket, in a statement, as ”one of the best suburbs in the nation,” as multifamily assets are in “high demand” in Woodbury. The community is 10 miles away from Minneapolis, which recently topped RentCafe.com’s first-half list of most in-demand cities for renters. This can be attributed to the metro area’s strong job market and walkable neighborhoods.
The other multifamily asset JRK is acquiring is the eight-story community 333 Fremont, located in San Francisco’s East Cut neighborhood. The building offers one and two-bedroom units. At the closing time of purchase, it was 95 percent occupied. Also, various retailers, employers, and entertainment venues are within walking distance of 333 Fremont.
The Class A purchases from the Los Angeles-based firm come out of its $1 billion JRK Platform 5 Fund, aiming for what it calls “higher quality, well-located” assets that were constructed after 1990. Since the fund closed in October 2022, it has been 20 percent invested. The two acquisitions in San Fransico and Woodbury come after JRK purchased a 288-unit community in Bolingbrook, Illinois, in August, with the holdings.
“With cap rate movement lagging the recent treasury reduction, we are seeing a window to acquire attractive cash yields on high-quality product at historically wide cap rates,” Daniel Lippman, president of JRK said.
“We are thrilled with finding these two investments for the Fund, which offer strong in-place cash flow while still providing significant physical repositioning upside.”
Plus he added that the company plans to be “aggressive buyers” and spend between another $1.5 billion to $2 billion on acquisitions.