JRK Dips into $1B Value-Add Fund for San Jose Acquisition

JRK Property Holdings has acquired Duo Apartments, a 301-unit Class-A multifamily community in San Jose, for $93.5 million. It’s the third acquisition by JRK Platform V, the Los Angeles-based real estate investment and management firm’s newest multifamily value-add fund. 

The $1-billion fund, which closed in October 2022, is 13% invested to date. Its portfolio contains institutional quality assets with an average year built of 2019 and geographic diversity between Florida, Kansas and California.    

“The increasingly challenging credit environment and elevated interest rates have set the stage for imminent distressed sales despite strong underlying multifamily fundamentals,” said JRK president Daniel Lippman. “As well-capitalized buyers with predominantly long-term fixed rate financing on our existing portfolio, we are excited to have $1.1 billion of dry powder available to acquire high-quality real estate at incredible values as owners face equity shortfalls from cash-in refinances or otherwise capitulate to cap rate expansion.”

Connect Orange County will take place Sept. 27, 2023 at VEA | Newport Beach Marriott in Newport Beach, concurrently with Connect Healthcare Real Estate on Sept. 27 and 28. Click here to register for Connect Orange County, and here to register for Connect Healthcare Real Estate.