RK Properties Sells TIC/Fund Multifamily Property for $77 Million, Reports Hefty Return

RK Properties, a sponsor of private placements and 1031 exchange offerings, has sold Sonata Apartments located in North Las Vegas.

RK Properties, a sponsor of private placements and 1031 exchange offerings, has sold Sonata Apartments located in North Las Vegas for $77 million. The sale was facilitated on behalf of one of the company’s tenant–in-common 1031 exchange programs and the RK Opportunity Fund III.

The property was originally purchased in January 2016 for $35 million. According to the company, coupled with cash flow generated during the hold period, the sale resulted in a total return to the TIC investors of 165.8 percent and 136.8 percent to the shareholders in the RK Opportunity Fund III. (Calculated based on gain from sale and monthly cash flow totals on invested capital). The hold period was six years, resulting in annualized returns of 27.64 percent and 22.81 percent, respectively.

The company added that roughly 90 percent of the TIC 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 45-year multifamily track record and our successes are highlighted by our loyal following,” said Steve King, chief operating officer of RK Properties.

Sonata is a Class A, 312-unit gated multifamily community built in 2008.

“Sonata was a successful valued-add opportunity where on turns we upgraded cabinets in kitchen and baths, added granite counter tops and high-end finishes,” said King. “Additionally, we did exterior upgrades and improvements to the amenities at the property. 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/owners.”

In other company news, RK Properties recently closed escrow on a new Delaware statutory trust acquisition: Pointe at East Shore located in the Orlando suburb of Apopka, Florida.

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 2022, the firm has sponsored 160 private placement programs, of which 145 have gone full cycle.

For more RK Properties news, visit their directory sponsor page.