JRK Property Holdings has acquired Residences at Park Place, a 258-unit luxury mid-rise apartment and townhome community in the preeminent Kansas City suburb of Leawood, KS, from VanTrust Real Estate.  JRK is also under contract to purchase a luxury high-rise community located in downtown Sarasota, FL from a separate seller in a transaction that is expected to close in March 2023.

The Los Angeles-based real estate investment and management firm is acquiring the properties through its newest multifamily value-add fund: the $1.0 billion JRK Platform V, which targets higher-quality, well-located multifamily investments built after 1990.  Through its predecessor funds, JRK owns and operates $7 billion in multifamily assets. 

“The dramatic rise in interest rates has created a negative leverage environment which has made it difficult to transact over the past year,” said JRK President of Investments James Broyer.  “We have remained patient and disciplined during this period of market dislocation and as we begin to see the headwinds subside, we are able to acquire these outstanding assets with positive leverage to borrowing costs resulting in attractive yield for our investors from Day 1.”

JRK leveraged the acquisition of Residences at Park Place with attractive long-term financing at a fixed-rate of 4.78% over the entire term from Fannie Mae, arranged by Annie Rice of Jones Lang LaSalle Capital Markets’ Los Angeles office.

“We’re thrilled to have begun deployment of our latest fund with two institutional quality assets located in preeminent locations within rapidly growing markets for north of a 5.5% cap.  Not only are our investors stepping into an exceptional basis with attractive long-term, fixed-rate financing, but the tremendous location and quality of these assets will insulate them from additional cap rate expansion.  Further, there remain significant operational and physical value-add opportunities we plan to capture through a renovation and JRK’s management,” added JRK President Daniel Lippman. 

Built in phases between 2014 and 2019 by the seller, The Residences at Park Place is the residential component of Park Place Village, a master planned, mixed-use development offering destination retail and restaurant attractions along with nearly 500,000 square feet of Class A office.  The Residences is comprised of three mid-rise apartment buildings offering one-, two- and three-bedroom apartment homes and a separate four-story residential building offering one- and two-bedroom loft units.  The amenity-rich community features a saltwater swimming pool with resort-style outdoor cabana and grilling area, media and game rooms, co-working space and two 24-hour fitness facilities with massage room, Peloton Bike, fitness on-demand center, infrared sauna, and customized concierge services.  The property was 98% leased at closing. 

Leawood, located 25 miles south of downtown Kansas City, is one of the most affluent cities in Kansas with an Average Household Income of $185,000 according to Jones Lang LaSalle, which marketed the property on behalf of the seller.  Benefiting from its top quality school system, recreational activities and proximity to Kansas City’s thriving economy, Leawood was ranked as the best suburb to raise a family in the state by Niche.com.  

David Gaines, Jim Gates and Adam Tilton of Jones Lang LaSalle in the firm’s Chicago and Kansas City offices represented the seller in the transaction.  

MORRISTOWN, N.J., Dec. 9, 2021 – JLL Capital Markets announced today that it has closed the sale of Southpoint at Massapequa, a 214-unit, luxury, multi-housing community located in Massapequa, New York.

JLL represented the seller, JRK Property Holdings. Fairfield Properties acquired the asset.

The property possesses an attractive unit mix that consists of large one-, two- and three-bedroom units some of which are townhouse style.  These units average 987 square feet.  Select units feature stainless steel appliances, newly renovated kitchen and baths, granite countertops, private entry, oversized closets bay windows and patios and balconies. Community amenities include a resort-style pool, sundeck, fitness center, “bark park”, outdoor BBQ area and valet trash collection.

Situated on the South Shore of Long Island in Nassau County, the community benefits residents with its proximity to coastal locations such as Jones Beach and Fire Island as well as various restaurants, parks, schools, grocery stores and shopping. The property is also located off of NY-27 providing connectivity to all major Long Island highways and offering unmatched accessibility to Suffolk County and the greater Tri-State area. In addition, Southpoint is less than two miles from the Amityville and Massapequa Park train stations, allowing convenient transportation to New York City by public transit or car.

The JLL Capital Markets Sales and Advisory team representing the seller was led by Managing Director Steve Simonelli, Senior Managing Director Jose Cruz, Managing Director Michael Oliver, Senior Managing Directors Kevin O’Hearn and Andrew Scandalios and Analyst Josh Stein.

“Interest in Long Island multi-housing communities continues to be at an all time high. The quality of the property and location, along with the upside in rents at Southpoint drew interest from national institutional investors as well as the local and regional private investors,” stated Simonelli.

JRK Property Holdings through its multifamily value add funds has acquired five garden-style apartment home communities in Florida, Texas, Louisiana and Maine totaling more than 1,500 units for $390 million. These transactions round out a year with nearly $700 million in new acquisition transaction activity for JRK.

The separate transactions all closing in the fourth quarter include the 266-unit Edgewater Crossing in Panama City Beach, FL;  301-unit The Halstead in Houston, TX;  336-unit Heights at Hammond in Hammond, LA; and a two-property, 620-unit portfolio in South Portland, ME.  

JRK, one of the largest multifamily landlords in the United States, acquired the properties, through its multifamily value-add funds: $800 million JRK Platform IV, which targets multifamily investments built after 1990; and its $330 million JRK MF Opportunities II, which targets assets built before 1990.  The investment vehicles are funded with capital from institutional investors, high-net worth individuals, and family offices.

JRK is planning to sustain its momentum into 2022, according to the President of JRK's investment division, James Broyer. "With over $5B of buying power from our two existing multifamily funds, our focus continues to be finding compelling opportunities across all vintages of properties in the majority of U.S. markets" said Broyer. 

JRK Property Holdings, Inc. (JRK) has acquired The Harrison Glendale, a 164-unit mixed-use luxury multifamily property in Downtown Glendale, CA  in an off-market transaction for $90.7 million 

JRK, one of the largest multifamily landlords in the United States, with a portfolio comprised largely of suburban garden-style communities, is seeking to expand its multifamily holdings with more urban infill product, according to Vice President of Acquisitions Daniel Lippman.

“While it is somewhat contrarian, we see relative value in select urban infill product based on how it’s priced compared to suburban product and are focused on growing our portfolio to include more urban core assets than we’ve historically held.” said Lippman

The Harrison Glendale is located at the southwest corner of Wilson and Central Avenues in Downtown Glendale, 12 miles north of Downtown Los Angeles.    It is one block from the Glendale Galleria and The Americana Brand, two of Southern California’s most popular destination shopping centers representing approximately 2.5 million square feet of retail, dining and entertainment space.   

Built in 2018, two five-story LEED Certified buildings surround a central courtyard with resort-style pool, park and barbecue area.  Residential units include studio, one- and two-bedroom floor plans  with high end finishes.  At street level is a 15,000-square-foot CVS pharmacy.  A two-level subterranean garage provides 239 parking stalls.  Other common area amenities include a two-level fitness center, yoga studio, club room and dog run.  An expansive rooftop deck with fire pits, barbecues and bar, offers unobstructed views of Glendale and the surrounding mountains. 

The property was 96 percent leased at closing.

For JRK, which now owns and operates over 3,500 multifamily units in California, The Harrison Glendale marks the firm’s first multifamily investment in Los Angeles County since 2010.  JRK’s Southern California portfolio also includes assets in Ventura County and Riverside County.

The property was marketed on behalf of the seller, a Las Vegas-based developer, by the CBRE Los Angeles team led by Dean Zander and Stewart Weston.

The acquisition was financed with Agency Debt through Freddie Mac’s Green Advantage program arranged by Robert Falese of Berkadia.

JRK Property Holdings has acquired two garden-style apartment home communities -- Carrington Park at Gulf Pointe, in Houston, TX and Fieldpointe of St. Louis in St. Louis, MO -- in separate transactions valued at nearly $81.5 million. 

Built in 2007, Carrington Park features 258 apartment homes, located in 10 three-story residential buildings on a 16-acre site at 11666 Gulf Pointe Drive, 15 miles southeast of Downtown Houston.     Built in 1969, Fieldpointe of St. Louis features 260 apartment homes and 58 townhomes at 1951 Oberline Drive in the St. Louis suburb of Maryland Heights.   Collectively, the properties are 96 percent occupied. 

JRK, one of the largest multifamily landlords in the United States, acquired the properties, through its newest multifamily value-add funds: $800 million JRK Platform IV, which targets multifamily investments built after 1990; and its $330 million JRK MF Opportunities II, which targets assets built before 1990.  The investment vehicles are funded with capital from institutional investors, high-net worth individuals and family offices. 

The two separate transactions follow JRK’s completion of its 4,061-unit Multifamily portfolio sale comprised of 12 communities ranging in size from 64 to 709 units located across California, Colorado, Florida, Georgia, North Carolina, Ohio and Texas.  The properties have been part of JRK’s portfolio for the past 10 years with 11 of the properties sold to Blackstone and 1 sold to Davlyn Investments. The portfolio sale capped off an active 2020 for JRK with nearly $2 billion in transaction volume.  

JRK is planning to continue 2021 where it left off in 2020, according to the President of JRK’s investment division, James Broyer.

“We have an ambitious goal of $1.5B billion in acquisitions in 2021” said Broyer.  “With close to $5B of buying power from our two existing multifamily funds, our focus is finding compelling opportunities across all vintages of properties in the majority of U.S. markets.”

JRK Property Holdings (http://www.jrk.com) one of the largest multifamily landlords in the United States, has acquired a 538-unit apartment complex in the Washington, DC suburb of Gaithersburg, MD,  the first in a series of acquisitions and dispositions totaling nearly $1.6 billion that is expected to close by year end.

Cadence at Crown, which was built in 2014 and is 95 percent occupied closed on October 1.  It is the largest of five communities, that JRK will close on in October.   The four other communities ranging in size from 152 to 408 units, are located in Tempe, AZ; Denver, CO; Lexington Park, MD;  and Baton Rouge, LA and are collectively 96 percent occupied.  Total cost for the five communities, acquired in separate transactions from different sellers will be $375 million. 

JRK is acquiring the assets through its newest multifamily value-add funds: $800 million JRK Platform IV, which targets multifamily investments built after 1990; and its $330 million JRK MF Opportunities II, which targets assets built before 1990.  With both funds less than 30% invested, JRK will continue to look for compelling opportunities in multifamily, as well as hotels through its inaugural $350 million JRK Hospitality Fund I.  The investment vehicles are funded with capital from institutional investors, high-net worth individuals and family offices. 

“Even with cap rate compression in many markets since pre-COVID, we are still finding compelling opportunities that generate significant cash-on-cash returns under severely stressed projections,” said JRK Vice President of Acquisitions Daniel Lippman.  “We are focused on long-term value creation and are not deterred by what we feel is short-term volatility if we believe the asset and the market are positioned to recover and perform well.  However, Cadence at Crown and the other assets we have under contract have had little to no delinquency and maintained high occupancy over the past several months,” he said.

JRK also is marketing for sale a $1.2 billion portfolio of 13 multifamily communities located in California, Colorado, Florida, Georgia, North Carolina, Ohio, and Texas. Each property, ranging in size from 64 to 709 apartment homes, are being marketed separately, but the firm has already received interest from several institutional buyers, to acquire the assets on a regional basis or as an entire portfolio.  Occupancy across the 13 assets is 96%.  First round offers were due October 1 and best and final offers have been set for October 15. 

“We have owned these properties from funds we raised 10-12 years ago,” added Lippman.  “Our plan is to replace these assets with acquisitions from our two newest funds.”