RK Properties, a sponsor of alternative private placements and Delaware statutory trust offerings, has sold two multifamily properties, Greentree Apartments and Juniper Meadows, both located in the Phoenix, Arizona area. The sales were facilitated on behalf of two of its 1031 exchange tenant–in-common investment programs and the RK Multifamily Income Fund XVI.
Greentree, a 184-unit apartment community built in 1986, sold for $24.5 million, a premium to the investors’ April 2007 purchase price of $15.7 million. RK Properties implemented a value-add business plan for the property which included the installation of upgraded appliances, new fixtures and brushed nickel door hardware packages, new flooring, and upgraded counters and cabinets. Common area enhancements included landscaping and pool area upgrades and the addition of a business center.
Juniper Meadows, purchased in May 2006 for $7.6 million, sold for $11.5 million. The property was acquired as a newly constructed gated community that had just completed its lease-up stage. It is comprised of 72 two-bedroom, two-bathroom apartment homes, which contain full-sized washers and dryers, built-in microwaves, and a patio or balcony. Common area amenities include a heated pool and outdoor spa, fitness center, business center, BBQ areas, covered parking and a clubhouse with leasing center.
“We are excited to have these two pre-recession properties go full cycle with good overall cash flow and total returns,” said Steve King, chief operating officer of RK Properties. “After almost 12 years it is time to move on and reposition investor equity into newer opportunities. We are very proud of our 40-plus year multifamily track record and our successes are highlighted by our loyal investor following.”
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 March, RK Properties noted that it has sponsored private placement programs that have acquired 150 properties, of which 134 have gone full cycle.