JRK Property Holdings has added 684 units to its national multifamily portfolio after closing on apartment communities in Los Angeles and Washington, DC in separate transactions in excess of $315 million.
Chase Knolls, a 401-unit garden-style community in Sherman Oaks and WestEnd25, a 283-unit high-rise community in DC’s West End neighborhood, were acquired through JRK’s $1B Platform 5 Fund, a multifamily value-add and core plus vehicle focused on high-quality assets built after 1990 that provide operational or physical repositioning opportunity. Platform 5 is currently 32% invested. In the case of Chase Knolls, which had approximately half its units built in 1949, the acquisition was financed in a joint venture with another JRK Fund, MF Opportunities III, a $200M vehicle that targets 1989 and older, value-add to core plus product. This was the first acquisition out of this vehicle.
“Our team excels at identifying fundamentally sound, undervalued opportunities that offer the best attractive risk adjusted returns, which is how we came to acquire an older suburban garden-style community and luxury urban high-rise in the same Fund,” said JRK President Danny Lippman. “It also marks our entry into Washington DC, a market we’ve tracked for many years and plan to continue to grow in.”
Due to the high barriers to entry and lack of developable land, Chase Knolls is only one of 12 institutional apartment communities (100+ units) built in Sherman Oaks in 75 years, according to Cushman & Wakefield, which marketed the property on behalf of the seller.
In addition to an underserved housing market, Chase Knolls also offers a variety of other demand drivers including award winning schools, walkability to approximately one million square feet of lifestyle retail, and access to the surrounding major employment hubs including Glendale/Burbank, Universal City, Downtown Los Angeles and Warner Center.
JRK will begin a multimillion-dollar capital improvement to dramatically improve the community amenities and common areas.
In a separate transaction, JRK through Platform 5, also acquired WestEnd 25, a 10-story high-rise apartment community in Washington, DC’s prestigious West End neighborhood. Located at 1255 25th Street NW across from Rock Creek Park, the property is a short walk to the neighborhoods of Georgetown and Dupont Circle.
Berkadia marketed the property on behalf of the seller, a Washington, DC-based real estate investment trust.
JRK plans to deploy the remainder of both Platform 5 and MF Opportunities III over the next 18-24 months. JRK also is investing out of its $350M JRK Hospitality Fund 1, which targets both full-service and select-service hotel assets in primary and secondary US markets.
Founded in 1991, JRK Property Holdings is a Los Angeles-based real estate investment firm specializing in the ownership, management, leasing and redevelopment of properties in primary and secondary markets throughout the United States. JRK pursues value-add and core plus opportunities – investing in properties that it can reposition to deliver sustainable, growing streams of cash flow. JRK’s $8 billion of assets under management is dedicated to a portfolio spanning 25 states with approximately 30,000 multifamily units, and 10 luxury and flagged hotels.
