JRK Property Holdings Acquires DC-Area Apartments as Part of $1.6B Strategy
JRK Property Holdings has acquired Cadence at Crown, a 538-unit apartment complex in the Washington, D.C., suburb of Gaithersburg, Md., as part of a strategy of acquisitions and dispositions totaling approximately $1.6 billion that is expected to close by the end of 2020.
JRK will also acquire four other communities this month, with properties located in Tempe, Ariz., Denver, Colo., Lexington Park, Md. and Baton Rouge, La. In total, the five communities, each with a different seller, will cost $375 million.
The sellers and individual prices were not disclosed.
Cadence at Crown is located at 113 Ellington Boulevard, along the I-270 Biotechnology and Life Sciences Corridor, one of the country’s most prominent hubs for medical research, testing and development.
“This property was attractive to JRK due to a combination of the incredible construction of this 538-unit mid-rise community along with its irreplaceable location within Downtown Crown, which is a mixed-use, highly walkable town center featuring 320,000 square feet of retail and commercial space,” James Broyer, JRK’s president of acquisitions, told Commercial Observer. “The abundant retail provides a variety of dining, shopping and entertainment options for the residents.”
The company is purchasing these assets through its newest multifamily value-add funds—the $800 million JRK Platform IV, which targets multifamily investments built after 1990; and the $330 million JRK MF Opportunities II, which targets assets built before 1990.
Cadence at Crown was built in 2014, and is currently 95 percent occupied.
“This investment provides the fund with both strong in-place, cash-on-cash returns given the attractive financing we were able to put in place and an ability for JRK to improve the unit interiors to further establish this property as the premiere rental community within the submarket,” Broyer said.
JRK is also marketing a $1.2 billion portfolio of 13 multifamily communities located in California, Colorado, Florida, Georgia, North Carolina, Ohio and Texas. These are all properties that were acquired 10 to 12 years ago.
Walter Coker, Brian Crivella and Robert Jenkins led the sales effort for JLL. The firm also represented the seller in the transaction.