RK Properties Fund Nets 108 Percent Return with Arizona Multifamily Sale
RK Properties, a sponsor of non-traded investment programs, sold Laguna at Arrowhead Ranch in Glendale, Arizona on behalf of one of its 1031 exchange investment programs and RK Multifamily Income Fund XV.
Built in 1998, the 160-unit class A property is comprised of one-, two- and three-bedroom floor plans. Unit amenities include central air conditioning, balconies or patios, and select units feature private entries, roman tubs and walk-in closets. Community amenities include a pool and spa, fitness center and clubhouse.
Although the sale price was not disclosed, the company noted that the property was sold at a premium to the investors’ 2005 purchase price. According to the company, coupled with cash flow generated during the hold period, the sale resulted in a 102 percent total return to the TIC investors and 108 percent total return to RKMIF XV shareholders (calculated based on the aggregate amount of original capital invested in the property). This does not include the pass through of tax benefits throughout the hold period.
In other RK Properties news, the company sold the Crossing at Riverlake in Sacramento in late 2016 which resulted in a 95 percent return to the investors (based on the same calculation above).
RK Properties offers multifamily replacement properties for 1031 tax deferred exchanges, as well as Fund investment opportunities for accredited investors who are seeking a real estate investment. As of January 31, 2017, RK Properties has sponsored 149 private placement programs, of which 124 programs have gone full cycle.
