RK Properties, a sponsor of alternative private placement offerings, has sold Pinnacle Fort Union in Salt Lake City, Utah for nearly $31.8 million on behalf of one of its 1031 exchange tenant–in-common investment programs and the RK Multifamily Income Fund XV.
The property was originally purchased in December 2004 for $17 million. Coupled with cash flow generated during the hold period, the company noted that the sale resulted in a total return to the TIC investors of 115 percent, while RK Multifamily Income Fund XV shareholders received 120 percent.
The returns are calculated based on the total amount of original capital invested in the property and does not include the pass through of tax benefits throughout the hold period.
Additionally, approximately 75 percent of the TIC investors are participating in another 1031 exchange facilitated by the company.
“We are very proud of our 40-plus year multifamily track record and our successes are highlighted by our loyal following,” said Steve King, vice president of RK Properties.
Pinnacle Fort Union was designed to maximize the views of the Wasatch Mountain range, Salt Lake Valley and the landscaped courtyards. Built in 1996, the Class A property includes 160-units comprised of one-, two- and three-bedroom floor plans.
Unit amenities include fireplaces, nine-foot or vaulted ceilings, washers and dryers, and Roman tubs in the master baths. Property amenities include a swimming pool, hot tub, fitness center, clubhouse with business center, garages with openers and a creek-side picnic area with barbeques.
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 26 2018, the company has sponsored 151 private placement programs, of which 127 programs have gone full cycle.