RK Properties, a sponsor of alternative private placement offerings, has fully subscribed its latest 1031 exchange program, RK Manchester Place DST, a Class A, 308-unit multifamily property in the Atlanta suburb of Lithia Springs, Georgia.
The offering was fully subscribed for more than $25 million in capital in less than 60 days by accredited investors seeking to complete a 1031 exchange, as well as those wanting to make direct cash investments.
Built in 2001, Manchester Place is situated on nearly 39 acres, with one-, two- and three-bedroom apartment homes averaging 1,017 square feet. Current rents average $1,043 per month, and the complex is currently 96 percent occupied.
The community’s amenities include a swimming pool, clubhouse, business center, fitness center, grilling and picnic areas, car-care center, and detached and attached garage parking. Each unit features central air conditioning and heat, vaulted ceilings, walk-in closets, and washer/dryer hook-ups.
RK Properties plans to implement an improved marketing and value-add campaign to reposition the property with improved rents and management. Renovations include interior upgrades including faux hardwood flooring, stainless steel appliance packages, new finishes, and washers and dryers in all units.
The company believes these upgrades will justify average rent increases of $75 to $125 per month, depending on unit sizes. Planned exterior building enhancements include the pool area, fitness center and office upgrades, and roof replacement.
“We believe this asset is consistent with our disciplined underwriting criteria that meets the requirements of our investors for preservation of capital, reliable monthly income, appreciation, and tax benefits.” said Steve King, vice president of RK Properties.
Long Beach, California-based RK Properties has a 40-plus year track record, dating back to 1976, in the multifamily apartment market. To date, the company has purchased and managed more than $1.5 billion in assets across the country.