Venture on Marlette, a 14-unit apartment complex in Uptown Phoenix, closed on April 20 for a purchase price of $3.562 million.
Neighborhood Ventures projects yield 12% return on investment
Neighborhood Ventures, the nation’s largest community-based real estate investment company, is pleased to announce the sale of two properties. Venture on Wilson, a 12-unit apartment building in downtown Tempe closed on April 13 for a purchase price of $2.1 million / $175,000 per unit. Venture on Marlette, a 14-unit apartment complex in Uptown Phoenix, closed on April 20 for a purchase price of $3.562 million / $254,428 per unit. Each of the Arizona residents who invested in the projects received a 12% preferred annual return on their investment when the property sold.
Approximately 24% of the total capital for the Venture on Marlette investment project came from 130 Arizona residents who each invested an average of $4,600 in the property. Venture on Wilson, the very first Neighborhood Ventures investment project, had 104 Arizona residents who each invested an average of $4,800 in the property, representing approximately 31% of the total capital for the project.
Upon purchase of each property, the Neighborhood Ventures team completely renovated all units, including upgraded appliances, flooring, cabinetry, countertops, fixtures, and common areas. Following renovation, rents were brought in line with the market.
“The real estate market in Arizona is on fire, and Neighborhood Ventures is enabling all Arizona residents to get involved, through our unique real estate crowdfunding model, which we refer to as community-based investment” says Neighborhood Ventures co-founder John Kobierowski. “Our investors love the ability to invest in commercial real estate, follow the progress as we renovate and stabilize rents at our investment properties, and not have to do any of the heavy lifting themselves.”
“We believe that Multifamily assets will continue to drive strong returns without the volatility of the stock market,” says Neighborhood Ventures co-founder Jamison Manwaring. “As inflation becomes more of a concern, real estate and other fixed assets remain a highly sought-after investment.”
Prior to the sale of these two properties, Neighborhood Ventures also sold Venture on 66th, an 8-unit apartment building in Old Town Scottsdale on December 23 for a purchase price of $2.1 million / $262,500 per unit, paying out $659,344 to 87 community investors.
Neighborhood Ventures was launched in September 2017 by Jamison Manwaring, a former tech analyst at Goldman Sachs and VP of Investor Relations at LifeLock, and John Kobierowski, a veteran in the apartment industry and President and CEO of ABI Multifamily. The two partnered to create Neighborhood Ventures when new laws were passed that allowed non-accredited investors to become shareholders in Phoenix apartment projects with as little as a $1,000 investment.
Arizona residents interested in learning more about investing in their community can visit neighborhood.ventures to view current opportunities. Accredited investors in all 50 states now can invest in the Neighborhood Ventures Fund, which will co-invest in 5-10 projects with local Arizona investors.