RK Properties Fund Buys North Carolina Multifamily Property in First DST Acquisition
RK Opportunity Fund IV, a private placement offering sponsored by RK Properties, purchased Edwards Mill, a 220-unit multifamily property in in Raleigh, North Carolina for an undisclosed amount. Edwards Mill is the company’s first Delaware Statutory Trust structure, offering investment opportunities for 1031 exchange buyers and direct capital investors.
“We are excited to add our third and final property to RK Opportunity Fund IV with the purchase of Edwards Mill,” said Steve King, vice president of RK Properties. “We believe this asset is consistent with our disciplined underwriting criteria that meets the requirements of our investors for preservation of capital, reliable monthly income, appreciation, and tax benefits.”
Built in 1984, Edwards Mill is a Class A community situated on 36.5 acres, with one-, two- and three-bedroom townhome-style apartments that average 1,213 square feet. Current rents average $1,129 per month, and the complex is currently 95 percent occupied.
The community’s amenities include a swimming pool, clubhouse, business center, fitness center, grilling and picnic areas, car-care center, and detached and attached garage parking. Each apartment home features central air conditioning and heat, vaulted ceilings, fully equipped kitchens, walk-in closets, and washer/dryer hook-ups.
RK Properties plans to upgrade the interior with faux hardwood flooring, stainless steel appliance packages and lighting fixtures, new finishes, and washers and dryers in all units. The company believes that these upgrades will justify average rent increases of $75 to $125 per month, depending on unit sizes. Planned exterior building enhancements include the pool area, fitness center and office upgrades, and exterior paint. RK Properties previously implemented a similar value-add protocol to increase rents at other properties it owns and operates.
Long Beach, California-based RK Properties has a 40-plus year track record, dating back to 1976, in the multifamily apartment market and focuses on acquiring assets in locations with historical rent growth and a value-add opportunity. To date, the company has purchased and managed more than $1.5 billion in assets across the country.
