JRK Property Holdings has acquired two Class A multifamily communities in Minneapolis and San Francisco in separate transactions totaling nearly $100 million. JRK made the purchases through its JRK Platform 5 Fund.
JRK Platform 5 Fund is a $1 billion multifamily value-add and core plus fund which targets higher-quality, well-located multifamily investments built after 1990. This is JRK’s third acquisition out of the fund in the past 30 days. Last month, JRK acquired Brook on Janes Apartments, a 288-unit multifamily community in the greater Chicagoland metro. The fund is 20% invested since its closing in October 2022.
Woodbury Park is a 224-unit townhome community in Woodbury, Minnesota, 10 miles east of downtown Minneapolis. Amenities also include a resort-style swimming pool, outdoor fire pits, 24-hour fitness center, and outdoor grilling stations. Multifamily assets in Woodbury are in high demand due to the submarket’s reputation as one of the best suburbs in the nation and within a top-rated school district. Fortune Magazine recognized Woodbury as one of the top 14 Best Places to Live in the United States in 2022. Woodbury Park was over 99% occupied at closing.
333 Fremont is an eight-story, high-rise community located in the heart of San Francisco. Delivered to market in 2014, it was originally constructed as condominiums.
Keith Collins, Abe Appert and Ted Abramson of CBRE marketed Woodbury Park; and Philip Saglimbeni, Stanford Jones, and Alexander Tartaglia of Institutional Property Advisors marketed 333 Fremont.
“We are finding an increasing number of compelling investment opportunities amid treasury volatility and a reduced buyer pool,” said JRK President Daniel Lippman. “With cap rate movement lagging the recent treasury reduction, we are seeing a window to acquire attractive cash yields on high-quality product at historically wide cap rates. We are thrilled with finding these two investments for the Fund, which offer strong in-place cash flow while still providing significant physical repositioning upside. Over the next 12-18 months, we intend to be aggressive buyers and invest another $1.5 to $2 billion.”
JRK is also currently investing out of its $200 million MF Opportunities III Fund, which targets value-add multifamily assets built before 1990 as well as its $350 million JRK Hospitality Fund I, which targets both full-service and select-service hotel assets in primary and secondary US markets. Through its current and predecessor funds, JRK owns and operates $8 billion in assets.
