Neighborhood Ventures, one of the country’s largest real estate crowdfunding companies, announced the launch of its Arizona Multifamily Opportunistic Fund. This special fund will allow accredited investors (and non-accredited investors in Arizona) to invest in Arizona multifamily commercial properties that Neighborhood Ventures estimates are selling at a distressed rate of 30% below intrinsic value.
The new fund is open to accredited investors nationwide for a minimum of $50,000, while non-accredited investors residing in Arizona can invest as little as $5,000. The plan expects a 16–20% Internal Rate of Return (IRR). The fund has a target term of four years.
“This is a golden opportunity to invest in multifamily apartment buildings at a discount,” says Neighborhood Ventures’ co-founder and CEO, Jamison Manwaring. “But there’s a need to act fast, which is why we launched this fund. Now is the right time for us to pick up these properties, under market value, as the next wave of commercial real estate debt is coming due.”
Co-founded in 2017 by former Goldman Sachs tech analyst Jamison Manwaring and John Kobierowski, President and CEO of ABI Multifamily, Neighborhood Ventures launched a crowd-funded REIT to purchase a number of income-generating properties, eventually selling them and paying investors an average 12% preferred annual return on their investments.
With this new special fund, Neighborhood Ventures hopes to purchase properties from owners who can’t refinance their debt, as well as from banks looking to unload properties they need to foreclose on. The experienced team of real estate professionals at Neighborhood Ventures targets multifamily properties in residential locations that are prime for investment and redevelopment. They identify mid-sized properties priced below market value and then apply strong property management and skilled remodelers to significantly improve the property value.
“After several years of rising interest rates, property owners suddenly find it challenging to keep their property finances afloat,” said John Kobierowski, Neighborhood Ventures co-founder and Head of Real Estate. “Our strength comes from identifying properties that show real market promise and negotiating with these property owners to purchase their units at a discount. With our new fund, Neighborhood Ventures is introducing these buys to investors who are looking to take advantage of this unique time in the Arizona real estate market.”
