RK Properties, a sponsor of alternative private placement offerings, has sold Villas on Bell in Phoenix, Arizona for $24.7 million on behalf of one of its 1031 exchange tenant–in-common investment programs and the RK Multifamily Income Fund XV.
Constructed in 2002, Villas at Bell Apartments is comprised of 168 one-, two- and three-bedroom units with nine-foot ceilings, washers and dryers, built-in microwaves, individual alarm systems, walk-in closets, and a patio or balcony. Common area amenities include a heated pool & outdoor spa, fitness center, business center, BBQ areas, covered parking, and a clubhouse with leasing center.
RK Properties originally purchased Villas on Bell in 2004 for $13.2 million. The company noted that coupled with cash flow generated during the hold period, the sale resulted in a total return to the TIC investors of 114 percent, and 120 percent to the shareholders in RKMIF XV (calculated based on the aggregate amount of original capital invested in the property). This calculation does not include the pass through of tax benefits throughout the hold period.
Additionally, approximately 75 percent of the TIC’s are expected to participate in another 1031 tax-deferred exchange into a new RK Properties acquisition.
“We are very proud of our 40-year multifamily track record and our successes are highlighted by our loyal following,” said Steve King, vice president of RK Properties.
In other RK Properties news, the company recently sold the Village at Fair Oaks in Sacramento for $19.3 million, a premium to the investors’ 2003 purchase price of $10.7 million. RK noted that the sale resulted in a 96 percent return to the TIC investors and 100 percent to the fund shareholders (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. As of January 31, 2017, the company has sponsored 150 private placement programs, of which 126 programs have gone full cycle.