Rise Invest acquired the apartment community known as Lofts on 3rd located at 1401 N 3rd Street in Phoenix, AZ. Lofts on 3rd was recently renovated in 2019 and consists of 14 1×1 units, 14 2×2, units (twelve of which are loft style), and one penthouse unit. The property is located just north of I-10, near the heart of downtown Phoenix and is just a 5-10 minute walk from Roosevelt Row, which has blossomed into one of the Phoenix MSA’s best nightlife districts. Much like the rest of the Phoenix MSA, this area has received significant investment in housing in order to keep pace with demand and support the growing economy.
Lofts on 3rd has seen significant revitalization in recent years. 100% of the units have been renovated with modern finishes and in-unit washers/dryers — in addition to significant improvements addressing amenities, deferred maintenance, and curb appeal. The property stands to benefit even further from enhanced property management and leasing.
The acquisition is a 1031 exchange of an asset that Rise Invest sold recently in combination with additional 1031 funds from another Rise Invest investor.
“This deal has everything you want at a time like this,” says Drew Breneman, Rise Invest’s Founder & CEO. “The going-in cap rate is phenomenal, and we will be cash-flowing on day 1 without needing to capture any loss-to-lease. We’re now up to 5 properties and 190 total units in the Phoenix MSA after having stepped into the market late last year and have come far in scaling our portfolio outside of Chicago and Minneapolis. We’re very excited about this asset and continuing to invest in Phoenix.”
“It is rare to acquire a stabilized asset in downtown Phoenix at such an attractive basis. With the help of our partners, we are confident that this will provide investors healthy cashflow while also being positioned in one of the most desirable areas in a rapidly growing market,” says Evan Dillon, 27, VP of Investments.
“So much of our time is spent surveying the market and identifying the most favorable investment opportunities, and we have a lot of conviction that our acquisition and strategy for Lofts on 3rd will be successful. We’re eager to continue building our reputation within the greater Phoenix market, and we think this deal is an excellent opportunity to showcase just that,” says Sam Markin, 26, Investment Associate.
