JRK Acquires $285M Apartment Portfolio from Aimco

The deal illustrates that "Dislocation in the credit markets has created opportunities to acquire fundamentally sound multifamily properties at attractive prices," says Jim Lippman, chairman and CEO of JRK Property Holdings, in a statement regarding the transaction. In order to compete for those deals in today's uncertain markets, however, Lippman said that buyers must demonstrate to sellers that they can close deal with "speed and certainty of execution."

The newly acquired portfolio will be managed by JRK Residential Group, JRK's property management affiliate. The transaction represents the third joint venture between JRK and JRK Birchmont Advisors, which is the private equity division of JRK.

The deal is the fourth transaction consummated with Aimco and is the result of a direct negotiation that began in early 2008, JRK says. The acquisition increases the value of JRK Property Holdings' real estate portfolio to more than $3 billion.

With the closing of the deal, JRK Property Holdings, which was founded in 1992, and its JRK Residential Group subsidiary own and manage a portfolio consisting of 189 apartment properties totaling more than 38,000 units. JRK Property Holdings and its subsidiaries—JRK Birchmont Advisors, JRK Residential Group and JRK Hotel Group—have seven offices with properties located in 23 states.

Aimco is one of the largest owners of apartments in the US and had sold $2 billion worth of properties this year as of Oct. 31, according to company records. Aimco execs said that the $2 billion in sales represented about 8% of multifamily sales in the US as of Oct. 31.