RK Properties, a sponsor of alternative private placement offerings, has recently sold four multifamily properties across Phoenix, Arizona and Salt Lake City, Utah for a combined $94.5 million on behalf of one of its 1031 exchange tenant–in-common investment programs and several RK Multifamily Income Funds.
The sales include Sun Wood Apartments, Village Sereno Townhomes and Sun Creek Apartments, which are located in various submarkets of Phoenix and were sold in June and July. Pinnacle Ft. Union, which sold towards the end of March, is located in Salt Lake City.
The total purchase price for the four assets at time of acquisition was approximately $54.2 million and the total sale price at deposition was $94.5 million with an average annual return of 10 percent.
The company noted that coupled with cash flow generated during the hold period, the sales resulted in total average returns to the TIC investors of 115 to 120 percent (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.
Additionally, about 75 percent of the TIC’s are participating in another 1031 tax-deferred exchange through a Delaware statutory trust sponsored by the company.
In other company news, last week RK Properties purchased One White Oak in Atlanta, Georgia as a DST structured acquisition for 1031 exchange clients and straight capital investments. Constructed in late 2017, the property was purchased for $42.5 million from GJ Enterprises Group LLC.
“We closed escrow on July 23, 2018 and are very excited about this opportunity because of the high barriers to entry this submarket presents and the phenomenal growth this area has been experiencing,” said Blake Brewer, director of sales and acquisitions.
RK Properties offers multifamily replacement properties for 1031 tax deferred exchanges, as well as straight capital investment opportunities for accredited investors who are seeking a real estate investment. As of July 26, 2018, RK Properties has sponsored 156 private placement programs. Of the 156 programs, 131 have gone full cycle and 25 are currently operational.