Multifamily landlord JRK Property Holdings paid $90.7 million for a 164-unit complex in Glendale. The purchase was made through a 1031 exchange in an off-market deal, the company announced.
The Harrison Glendale at 318 W. Wilson Avenue totals 144,000 square feet, with CVS occupying 15,100 square feet of ground floor retail space.
The seller was the Molasky Group of Companies, property record show. Las Vegas-based Molasky developed the rental building in 2018. Greystar handles leasing. CBRE’s Dean Zander, Stew Weston and Chris Tresp represented the seller.
The Harrison has a mix of studios, one-, and two-bedroom units. The complex was 96 percent leased at the time of the sale, according to ReBusinessOnline. It includes a pool, gym, yoga, studio, club room and a dog run.
The 1031 exchange allows JRK Properties to defer capital gains. When he was running for office, now-President Biden proposed eliminating 1031 “like-kind” exchanges for investors with annual incomes greater than $400,000. That was part of his plan to finance $775 billion in government spending over the next 10 years on child care and care for the elderly. Biden has so far not addressed 1031 exchanges.
The property isn’t far from a 115-unit apartment complex that Essex Property Trust sold to Fairmont Management for $60 million in November.
Raintree Partners has also been investing heavily in Glendale. In mid-2019, the firm paid $79 million for a multifamily portfolio there. Later that year, Raintree bought a 92-unit apartment complex just outside the city.