Latest news with #JRKPropertyHoldings
Yahoo
02-07-2025
- Business
- Yahoo
JRK Property Holdings enters Washington, DC
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Properties: WestEnd25 and Chase Knolls Buyer: JRK Property Holdings Seller: JBG Smith and Withheld Property type: High rise and garden style Units: 684 Location: Washington, D.C. and Sherman Oaks, California Total purchase price: $315 million JRK Property Holdings announced several deals in the second half of 2024. Now, the Los Angeles-based real estate investment firm appears to be experiencing another growth spurt, as it has added 684 units to its apartment portfolio after closing on apartment communities in Los Angeles and Washington, D.C., for more than $315 million total. Despite the coasts being out of favor among some investors, JRK sees an opportunity. 'We feel that many 'blue' markets nationally have been oversold and present good long-term value,' CEO Bobby Lee told Multifamily Dive. JRK acquired the properties through its $1 billion Platform 5 Fund, a multifamily value-add and core-plus vehicle focused on high-quality assets built after 1990 with operational or physical repositioning opportunities, according to a news release shared with Multifamily Dive. WestEnd25, a 10-story high-rise apartment building in Washington, is a short walk to the neighborhoods of Georgetown and Dupont Circle. The property, built in 2009, offers a mix of 283 large studio, one- and two-bedroom apartment homes, including 21 penthouse units. JRK plans to update the property with a state-of-the-art fitness center, redesigned rooftop amenity spaces, resort-style pool and sundeck and updated unit interiors when a resident vacates. Berkadia marketed the property on behalf of the seller, identified by The Washington Business Journal as Washington, D.C.-based JBG Smith. With the acquisition of WestEnd25, a 283-unit high-rise community, JRK enters the Washington, D.C. market — a metro area it has been tracking for several years. The firm wasn't deterred by concerns about DOGE and government cuts when buying the property. 'We felt that the WestEnd25 property was being painted by that same brush even though it has very little exposure to end sectors being affected by these types of cuts — government or government contractor jobs,' Lee said. 'Typically, we like to bolt on acquisitions in metro markets once we take a toehold, so I see Washington, D.C., as being a future growth market for us.' The acquisition of Chase Knolls, a 401-unit garden-style community in Sherman Oaks, California, was financed in a joint venture with another JRK Fund, MF Opportunities III, a $200 million vehicle that targets 1989 and older, value-add to core plus product., Chase Knolls sits on a 14-acre site that spans nearly two city blocks in the heart of Los Angeles' San Fernando Valley. The property was originally constructed in 1949, featuring 260 art deco apartment homes in 19 one- and two-story residential buildings. In 2021, six modern two- and three-story residential buildings with 141 units, along with a clubhouse and resort-style pool and spa, were added to the property. JRK will begin a multimillion-dollar capital improvement to improve community amenities and common areas. Chase Knolls is one of only 12 institutional apartment communities built in Sherman Oaks over the past 75 years, according to Cushman & Wakefield, which marketed the property on behalf of the seller. The asset is situated near award-winning schools, offers walkability to a variety of retail options and provides access to surrounding major employment hubs, including Glendale, Burbank, Universal City, downtown Los Angeles and Warner Center, according to JRK. JRK plans to deploy the remainder of Platform 5 and MF Opportunities III over the next 18 to 24 months. 'Stability in the Treasury and credit markets has provided a great window for us to acquire assets, and we expect to acquire $2 billion to $3 billion over the next 18 to 24 months as long as Treasury markets stay relatively calm,' Lee said. JRK, with a strong balance sheet and the capital to make deals, has found limited competition for many of the assets that it's targeting, according to Lee. 'Many other bidders do not have the capital fully raised and are more susceptible to [limited partner] sentiment tied to the volatility of public equity and debt markets,' Lee said. 'It is no coincidence that we are stepping on the accelerator pedal in the face of historical volatility in the equity markets.' Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Recommended Reading Essex assumes ownership of California asset
Los Angeles Times
30-06-2025
- Business
- Los Angeles Times
JRK Property Holdings Acquires Chase Knolls in Sherman Oaks and WestEnd in D.C. for $315M
Los Angeles-based JRK Property Holdings acquired Chase Knolls in Sherman Oaks and a high-rise apartment tower in Washington, D.C., in separate transactions for an aggregate of $315 million. Chase Knolls is a 401-unit garden-style apartment community in Sherman Oaks that was built in 1949 with 260 units. It was expanded in 2021 with 141 additional units along with a clubhouse, resort-style pool and spa. '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,' said Danny Lippman, president of JRK, in a statement. In Washington, D.C., the company acquired luxury high-rise WestEnd 25, a 283-unit property in the West End neighborhood. It was built in 2009 and includes a mix of one- and two-bedroom units along with 21 penthouse units. Lippman noted that this was the company's entry into the Washington, D.C. market. Chase Knolls was listed by Cushman & Wakefield. JRK plans a multi-million-dollar renovation of the common areas and community amenities. JRK Property Holdings was founded in 1991 and has an $8-billion portfolio spanning 25 states with 30,000 apartment units, along with 10 hotels. Information for this article was sourced from JRK Property Holdings.
