Home News RK Properties Sells Multifamily Property Near Phoenix for $36.3 Million

RK Properties Sells Multifamily Property Near Phoenix for $36.3 Million

RK Properties, a sponsor of alternative private placements and Delaware statutory trust offerings, has sold Azure Creek Apartments located in the Cave Creek submarket of Phoenix, Arizona.

RK Properties, a sponsor of alternative private placements and Delaware statutory trust offerings, has sold Azure Creek Apartments located in the Cave Creek submarket of Phoenix, Arizona on behalf of one of its tenant–in-common 1031 exchange investment programs and the RK Opportunity Fund III.

Azure Creek was originally purchased in January 2015 for approximately $23.3 million and sold for nearly $36.3 million.

RK Properties said that coupled with cash flow generated during the hold period the sale resulted in a total IRR to the TIC investors of 55.55 percent and 52.50 percent to the shareholders in RKOF III (calculated based on the aggregate amount of original capital invested in the property). The hold period was five years, resulting in annualized IRRs of 11.11 percent and 10.60 percent, respectively. This does not include the pass through of tax benefits throughout the hold period, the company noted.

Additionally, the company said that about 80 percent of the TIC investors are in the process of doing another 1031 tax-deferred exchange into a new RK Properties acquisition. “We are very proud of our 40 plus year multifamily track record and our successes are highlighted by our loyal following,” said Steve King, COO of RK Properties.

Built in 2001, Azure Creek is a 160-unit Class A property located in the Tatum Ranch planned community and includes one- and two-bedroom floor plans. The company installed new cabinetry and granite countertops in the kitchens and baths of vacated units, and new fixtures throughout all units.

“By doing these upgrades we were able to raise rents and create increased value in a short period of time,” added King.

Property amenities include detached garages, a clubhouse with Wi-Fi, concierge services, a heated swimming pool with fountains, a hot tub, business center, 24-hour fitness center, picnic areas, barbecue grills, biking and walking trails, and a dog park.

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 January 2020, the company has sponsored 153 private placement programs, of which 137 have gone full cycle.

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