US real estate investment firm JRK Property Holdings has made $168.5m (€162m) worth of acquisitions on behalf of its latest value-add multifamily fund.
The manager investing on behalf of the JRK Platform V has acquired the Residences at Park Place asset in the Kansas City suburb of Leawood from VanTrust Real Estate. JRK has also agreed to buy a luxury high-rise community located in downtown Sarasota, Florida from a separate seller in a deal expected to close in March.
JRK president of investments James Broyer, said: “The dramatic rise in interest rates has created a negative leverage environment which has made it difficult to transact over the past year.
“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 one.”
Daniel Lippman, JRK president, said: “We’re thrilled to have begun deployment of our latest fund with two institutional quality assets located in pre-eminent 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.”
JRK Platform V is a $1bn fund that targets higher-quality, well-located multifamily investments built after 1990.
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