RK Properties Sells Multifamily Property for $56.5 Million

RK Properties, a sponsor of private placements and 1031 exchange offerings, has sold Edwards Mill in Raleigh, North Carolina for $56.5 million.

The sale was facilitated on behalf of one of the company’s DST 1031 exchange programs and the RK Opportunity Fund IV.

The property was originally purchased in August 2017 for $34.5 million. According to the RK Properties, coupled with cash flow generated during the hold period, the sale resulted in a total return to the DST investors of 175% and 165% to the shareholders in RK Opportunity Fund IV. The hold period was 5.4 years, resulting in average annual returns of 14% and 12%, per RK Properties.

The company added that most of the DST investors are in the process of participating in another 1031 tax-deferred exchange into a new RK Properties acquisition.

“We are very proud of our 47-year multifamily track record and our successes are highlighted by our loyal following,” said Steve King, chief operating officer of RK Properties.

Edwards Mill is a 220-unit townhome-style community in Raleigh, North Carolina. The property is located near Crabtree Valley Mall and “perfectly positioned in one of Raleigh’s more affluent, amenity rich submarkets.”

“Additionally, we did exterior upgrades and improvements to the amenities at the property,” said King. “Because the location and quality of the asset the upgrades were well accepted, and we were able to push the rents to increase the value of the property on behalf of our investors and owners.”

RK Properties has a 45-plus year track record, dating back to 1976, in the multifamily market. To date, the company has purchased and managed more than $1.5 billion in assets across the country. As of January 2023, the firm has sponsored 163 private placement programs, of which 147 have gone full cycle.

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