Neighborhood Ventures, an Arizona-based real estate crowdfunding company, has acquired Venture on 52nd Street, a foreclosed 71-unit multifamily property in the Arcadia neighborhood of Phoenix, for $11 million.
The transaction marks the second time Neighborhood Ventures purchased a distressed property and the first in foreclosure. The purchase price was more than 35% below its 2022 valuation of $18.2 million.
The property features 12 studio units, 47 one-bedroom units, and 12 two-bedroom units, ranging from 400 to 748 square feet.
“This successful closing is another example of how Neighborhood Ventures is leveraging market conditions to acquire distressed properties at a deep discount, reposition them, and create long-term value for our investors,” said Jamison Manwaring, co-founder and CEO of Neighborhood Ventures. “Our ability to act quickly and purchase the asset at a foreclosure auction allowed us to secure this asset at an exceptional price, and we are excited to begin executing our value-add strategy.”
The company added it is focused on stabilizing the property, driving occupancy, and optimizing management operations to maximize investor returns, which are being projected at a 12% preferred annual return over a three-year hold period.
Last December, Neighborhood Ventures announced its acquisition of a distressed 123-unit multifamily property in Central Phoenix for $13 million, a 30% discount of its appraised value.
