JRK Property Holdings is betting on what it deems as undervalued properties in the multifamily space, with two community purchases for a combined $315 million.
The properties in question were Chase Knolls in Sherman Oaks, California and WestEnd25 in Washington D.C. The two assets, which combine for a total of 648 units, were purchased through JRK's Platform 5 Fund, which has $1 billion in capital and is currently 32 percent invested.
Interestingly, Platform 5 is mainly targeting assets constructed after 1990 that show potential for repositioning. While Case Knolls was built in 1949 originally, it was renovated in 2021 to include six residential buildings that range from either two or three stories each. The update also got a pool, a spa and a clubhouse. Some perks nearby include one million square feet of lifestyle and retail space and employers such as Warner Center, Downtown Los Angeles, Glendale/Burbank and Universal City. Additionally, JRK said it's planning to deploy more capital improvements at Case Knolls, which it forecasts will cost in the "multimillions."
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“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,” JRK President Danny Lippman, said in a statement.
“It also marks our entry into Washington DC, a market we’ve tracked for many years and plan to continue to grow in.”
JRK also plans upgrades at WestEnd25, which was built in 2009 and offers studios, one bedrooms and two bedrooms. Some of those include adding a resort-style pool, a fitness center, rooftop amenity spaces, a sundeck and updating vacant apartments.
Looking ahead, JRK over 18-24 months said that it plans to finish deploying its funds across not only Platform 5 — but MF Opportunities III as well, which is eyeing value-added multifamily assets built before 1990. Moreover, the company is looking for opportunities out of Hospitality Fund 1, eyeing hotel properties in both secondary and primary national regions.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
