JRK Property Holdings, a Los Angeles-based real estate investment firm, has bolstered its Louisiana portfolio with the separate acquisitions of two luxury communities in New Orleans out of its JRK Platform 5 Fund.
While JRK has a portfolio of 1,258 units in the state, the latest acquisitions of The Delaneaux, a 210-unit community in the Lower Garden District, and Lumina, a 382-unit community in the Mid-City neighborhood, mark its entry into New Orleans.
According to the firm, it continues to view the state and New Orleans, specifically, as a favorable market for multifamily investment because of its constrained pipeline, improving economy, and promising rent growth forecast.
“We were drawn to both of these properties due to their superior construction quality and irreplaceable locations proximate to New Orleans’ top-rated universities, medical research facilities, and premier dining and entertainment options,” said president Daniel Lippman.
Both luxury communities were delivered in 2020 by the same seller and feature high-end amenities, such as resort-style pools, 24-hour wellness centers, and outdoor grilling areas.
The Delaneaux is in a key location across from the River District, a 40-acre, mixed-use development that plans to have 735,000 square feet of office space and 220,000 square feet of retail, entertainment, residential, and lodging at completion.
Lumina is part of the Lafitte Greenway, a 2.6-mile walking and biking path that connects Mid-City to downtown. French Truck Coffee also is located on the ground floor of the building.
The $1 billion JRK Platform 5 Fund, which targets well-located value-add to core-plus multifamily investments built after 1990, is just under 40% invested and is expected to be nearly 60% invested by the end of the year.
“We are under contract on a few additional properties around the country that will close within the next 60 days and expect to call the remainder of the fund over the next 18 months based on the recent acceleration in our deployment pace,” added Lippman.
JRK’s $8 billion of assets under management spans 25 states with approximately 30,000 multifamily units and 10 luxury and flagged hotels.
