RK Properties, a sponsor of alternative private placements and Delaware statutory trust offerings, has sold Wilton Tower, a 150-unit multifamily high-rise located in the Ft. Lauderdale submarket of Wilton Manor, Florida, on behalf of the RK Opportunity Fund.
Wilton Tower sold for nearly $28.9 million, 91 percent more than the investors’ January 2009 purchase price of $15.1 million. The property was a failed condo conversion that RK Properties purchased as an REO directly from Bank of America.
“We are excited to have this pre-recession property go full cycle with good over all cash flow and total returns,” said Steve King, chief operating officer of RK Properties. “After 10 years, it is time to move on and reposition investor equity into newer opportunities.”
Built in 1975, Wilton Tower is comprised of one-, two- and three-bedroom floor plans. RK Properties implemented a value-add business plan by upgrading the interiors and exterior of the property. Interior upgrades included granite counters, new cabinets and appliances, carpet, linoleum, crown molding and fixtures. Exterior improvements included landscaping, upgrades to the pool area and installing a new Jacuzzi.
Additionally, new fitness equipment and flat screen TVs were placed in the fitness center, and the leasing office and business center were equipped with the latest in technology, the company said.
Earlier this month, the company sold Ravello Townhomes located in Las Vegas for $31 million, which resulted in a 102 percent total return to tenant-in-common investors and 87 percent return to RK Opportunity Fund III shareholders.
RK Properties offers multifamily replacement properties for 1031 tax deferred exchanges, as well as straight capital investment opportunities for accredited investors. As of March 2019, the firm has sponsored 151 private placement programs, 135 of which have gone full cycle.