RK Properties has sold two multifamily properties, Villas on Bell, a 168-unit property located in Phoenix, and Village at Fair Oaks, a 124-unit property located in Sacramento.
Both sales were successfully facilitated by RK Properties on behalf of its 1031 Exchange (Tenant–in-Common TIC) investment program and the RK Multifamily Income Fund XIV and RK Multifamily Income Fund XV.
Villas on Bell, constructed in 2002, is comprised of 168 one, two and three-bedroom apartment homes. The property was sold in December 2017 at a premium to the investors’ 2004 purchase price. Coupled with cash flow generated during the hold period the sale resulted in a total return to the TIC investors of 114 percent and 120 percent to the shareholders in RKMIF XV (calculated based on the aggregate amount of original capital invested in the property). This does not include the pass through of tax benefits throughout the hold period. Additionally, about 75 percent of the TIC’s are doing another 1031 tax deferred exchange into a new RK Properties acquisition.
Village at Fair Oaks, constructed in 1985, is comprised of 124 one and two-bedroom apartment homes. The property is situated on 4.75 acres in Fair Oaks, Calif., a suburb less than 17 miles from downtown Sacramento. The sale of that property, which also occurred in December 2017, resulted in a 96 percent return to the TIC investors and 100 percent to the shareholders in RKMIF XIV (based on the same calculation above). Again, the majority of the TIC equity from the sale, about 60 percent, will be rolling their equity into another 1031 tax deferred exchange through RK Properties.
RK Properties offers multifamily replacement properties for 1031 tax deferred exchanges, as well as Fund investment opportunities for accredited investors who are seeking a real estate investment. As of December 31, 2017, RK Properties has sponsored approximately 150 private placement programs. Of the 150 programs, 125 programs have gone full cycle.
