LOS ANGELES—JRK Property Holdings is planning an even more aggressive acquisition strategy in 2017 to take advantage of opportunistic opportunities. The company expects to see some dislocation in the market as a result of the political climate and rising interest rates. Aggressive acquisition volumes are nothing new for the company. In 2016, it completed $900 million in transaction activity with the acquisition of more than 2,300 apartment units and the disposition of 2,000. While it hasn't announced a specific goal this year, it has said it plans to increase volumes in the year ahead.

“We think the uncertain political backdrop and interest rate volatility should create a dislocation in the market which will be an environment ripe for opportunistic real estate acquisitions,” James Bloomingdale, SVP and head of acquisitions for JRK, tells GlobeSt.com. “In 2017, JRK will continue to focus on acquiring mismanaged assets that can be repositioned both physically and operationally and will continue to generate value despite short term macro concerns.”

In 2016, the firm focused on markets in California, Florida, Massachusetts, Washington and the disposition of assets in Texas. This year, the firm plans to focus on similar markets where they have experience. “We plan to continue to focus on the markets that we have been active in over the last couple of years, namely secondary markets that draft off of core market fundamentals but trade at higher, more attractive yields,” says Bloomingdale. “We continue to like parts of Washington, Oregon, California, Florida and Massachusetts.”

While some investors are concerned about the rising interest rates, Bloomingdale says that in the markets where JRK is active, increased rates will affect all investors, so there is no concern. “We expect rising interest rates will impact buying power equally among the groups that we compete with for suburban, garden style assets that are of institutional quality and size,” he says. “We also expect bolstered confidence in JRK's reputation as a reliable closer given the certainty of our fully discretionary equity funds and a preferred borrower's track record with most major sources of institutional financing.”

LOS ANGELES—JRK Property Holdings is planning an even more aggressive acquisition strategy in 2017 to take advantage of opportunistic opportunities. The company expects to see some dislocation in the market as a result of the political climate and rising interest rates. Aggressive acquisition volumes are nothing new for the company. In 2016, it completed $900 million in transaction activity with the acquisition of more than 2,300 apartment units and the disposition of 2,000. While it hasn't announced a specific goal this year, it has said it plans to increase volumes in the year ahead.

“We think the uncertain political backdrop and interest rate volatility should create a dislocation in the market which will be an environment ripe for opportunistic real estate acquisitions,” James Bloomingdale, SVP and head of acquisitions for JRK, tells GlobeSt.com. “In 2017, JRK will continue to focus on acquiring mismanaged assets that can be repositioned both physically and operationally and will continue to generate value despite short term macro concerns.”

In 2016, the firm focused on markets in California, Florida, Massachusetts, Washington and the disposition of assets in Texas. This year, the firm plans to focus on similar markets where they have experience. “We plan to continue to focus on the markets that we have been active in over the last couple of years, namely secondary markets that draft off of core market fundamentals but trade at higher, more attractive yields,” says Bloomingdale. “We continue to like parts of Washington, Oregon, California, Florida and Massachusetts.”

While some investors are concerned about the rising interest rates, Bloomingdale says that in the markets where JRK is active, increased rates will affect all investors, so there is no concern. “We expect rising interest rates will impact buying power equally among the groups that we compete with for suburban, garden style assets that are of institutional quality and size,” he says. “We also expect bolstered confidence in JRK's reputation as a reliable closer given the certainty of our fully discretionary equity funds and a preferred borrower's track record with most major sources of institutional financing.”