The real estate crowdfunding firm Neighborhood Ventures has launched the Arizona Multifamily Opportunistic Fund, which is designed offer investments 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 and the fund has a target term of four years.
“This is a golden opportunity to invest in multifamily apartment buildings at a discount,” said 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.”
The company added that it planned to use the fund to purchase properties from owners who are unable to refinance their debt and from banks looking to sell properties they need to foreclose on.
“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.”
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