RALEIGH, NC - RK Properties announced that it has acquired Edwards Mill, a 220-unit multifamily property in Raleigh, North Carolina.
"We are excited to add our third and final property to RK Opportunity Fund IV with the purchase of Edwards Mill," said Steve King, Vice President of Long Beach, California-based RK Properties.
"We believe this asset is consistent with our disciplined underwriting criteria that meets the requirements of our investors for preservation of capital, reliable monthly income, appreciation, and tax benefits."
Mr. King noted that RK Properties focuses on acquiring multifamily assets in strong locations with historical rent growth and a value-add opportunity.
Edwards Mill is the company's first Delaware Statutory Trust (DST) structure, offering investment opportunities for 1031 exchange buyers and direct capital investors.
Built in 1984, Edwards Mill is a 220-unit class 'A' community situated on 36.5 acres, with one-, two- and three-bedroom townhome style apartment homes that average 1,213 SF. Current rents average $1,129 per month, and the complex is currently 95% occupied.
The community's amenities include a swimming pool, clubhouse, business center, fitness center, grilling and picnic areas, car-care center, and detached and attached garage parking. Each apartment home features central air conditioning and heat, vaulted ceilings, fully equipped kitchens, walk-in closets, and washer/dryer hook-ups.
RK Properties is implementing an improved marketing and value-add campaign targeted towards repositioning the Property with improved rents and management. The Company will immediately implement interior upgrades including faux hardwood flooring, stainless steel appliance packages and lighting fixtures, new finishes, and washers and dryers in all units. It believes these upgrades will justify average rent increases of $75 to $125 per month, depending on unit sizes. Planned exterior building enhancements include the pool area, fitness center and office upgrades, and exterior paint.
RK Properties has been successful in upgrading units in this manner at other RK-owned and operated assets in similar submarkets and intends to follow the same successful formula of high quality components and attention to detail to achieve optimum rent premiums at the Property.