JRK continues its buying spree with two more multifamily property purchases worth $100 million

JRK Property Holdings is on a shopping spree and has acquired two additional multifamily developments for nearly $100 million.

The real estate investment firm did not disclose the price of each property individually — but one of the properties purchased is in Woodbury, Minnesota, at 2150 Vining Dr., which includes 287,975 square feet. First completed in 1991, the 23-home townhome community includes 224 units, offering spaces ranging from one to three bedrooms. The property, known as Woodbury Park, also has several perks, including outdoor fire pits, a fitness center, a community club, outdoor grilling stations and a swimming pool. The community was 99 percent occupied at the time of the closing.

JRK called the submarket “one of the best suburbs in the country” in a statement, as multifamily assets are “highly sought after” in Woodbury. The community is 10 miles from Minneapolis, which recently topped RentCafe.com’s list of the most desirable cities for renters in the first half of the year. That can be attributed to the metro area’s strong job market and walkable neighborhoods.

Another multifamily asset that JRK is acquiring is the eight-story community 333 Fremont, located in San Francisco’s East Cut neighborhood. The building offers one- and two-bedroom apartments and was 95 percent occupied at the time of closing. Additionally, various retailers, employers, and entertainment venues are within walking distance of 333 Fremont.

The Class A purchases from the Los Angeles-based company come from its $1 billion JRK Platform 5 fund, which targets “higher quality, well-located” assets built after 1990. It has invested 20 percent since closing in October 2022. The two acquisitions in San Francisco and Woodbury come after JRK bought a 288-unit development in Bolingbrook, Illinois, in August, along with a stake.

“With cap rate movements lower than the recent Treasury reduction, we see an opportunity to acquire attractive cash yields on high-quality products at historically high cap rates,” said Daniel Lippman, CEO of JRK.

“We are excited to have found these two investments for the Fund that offer strong on-site cash flow while also providing significant physical repositioning potential.”

He added that the company plans to “buy aggressively” and spend another $1.5 billion to $2 billion on acquisitions.