JRK Property Holdings Pays $315M for Two L.A. and D.C. Properties

A Los Angeles-based investment firm has spent north of $300 million on two multifamily properties on opposite sides of the country, Commercial Observer has learned.

JRK Property Holdings put down a combined $315 million to acquire Chase Knolls, a 401-unit, garden-style community in Los Angeles’ Sherman Oaks neighborhood, and WestEnd25, a 283-unit high-rise in Washington, D.C. JRK declined to disclose the names of the sellers, though property records show that Chicago-based Waterton sold Chase Knolls, and D.C.-based JBG Smith sold WestEnd25. 

JRK used its $1 billion Platform 5 Fund, which focuses on value-add and core-plus multifamily investments, to acquire the two complexes separated by a mere 2,700 miles. 

“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,” Danny Lippman, JRK president, said in a statement. “It also marks our entry into Washington, D.C., a market we’ve tracked for many years and plan to continue to grow in.”

A spokesperson for JBG Smith declined to comment, while Waterton did not immediately respond to a request for comment. 

The 14-acre Chase Knolls at 13401 Riverside Drive occupies nearly two blocks in L.A.’s San Fernando Valley. The community, designed by Black architects Heth Wharton and Ralph Vaughn, was originally built in 1949 with 260 units, in 19 buildings. Six buildings totaling 141 units, along with a clubhouse and resort-style pool, were added in 2021. JRK partly financed its purchase of Chase Knolls via its MF Opportunities III, a $200 million fund that focuses on properties built in or before 1989. 

Cushman & Wakefield marketed Chase Knolls on behalf of Waterton. The property is one of only 12 communities built in Sherman Oaks over the past 75 years with more than 100 units, according to C&W, and JRK is planning “multimillion-dollar” upgrades to the complex’s amenities and common areas. 

On the East Coast, the 10-story WestEnd25 was built in 2009 at 1255 25th Street NW, within D.C.’s West End neighborhood. The property features studio, one- and two-bedroom apartments, including 21 penthouse units, and JRK is also planning upgrades to its common areas and amenities. Berkadia marketed WestEnd25 on behalf of JBG Smith. 

JRK said that it plans to use the remainder of Platform 5 and MF Opportunities III funds within the next 18 to 24 months. The firm is also investing in assets via its $350 million JRK Hospitality Fund 1, which focuses on hotels. That includes Southern California’s Hilton La Jolla Torrey Pines, which JRK acquired last July. The $165 million purchase of the 394-key hotel, adjacent to Southern California’s famed Torrey Pines Golf Course, was one of the largest single-asset deals in the Golden State last year. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.