PHOENIX — A crowd-funded real estate firm bought a 71-unit property in east Phoenix, the company announced on Thursday.
Neighborhood Ventures purchased the property at 5245 E Thomas Road for $11 million and plans to rent out the units. The property that was in foreclosure features 12 studio units, 47 one-bedroom units and 12 two-bedroom units, with each unit spanning from 400 to 748 square feet.
After initiating the investment fund, the company raised $1,345,000 in 36 hours. In 2022, the property was valued at $18,250,000.
“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,” Jamison Manwaring, co-founder and CEO of Neighborhood Ventures, said in a press release.
“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 said it will now look to stabilize the property to maximize investor return. It said it projects investors will see an annual return of 12% over a three-year period.
“Our ability to close on this deal at such a significant discount highlights our team’s expertise in identifying and executing high-value real estate opportunities,” John Kobierowski, co-founder and president of Real Estate at Neighborhood Ventures, said in a press release.
“We look forward to repositioning this property and delivering strong returns for our investors.”
The opportunity to invest in the property is still available. A minimum investment of $5,000 to $10,000 for non-accredited Arizona residents and $50,000 for national accredited investors is required, the company said.
It is the second time Neighborhood Ventures has bought a “distressed property,” and the first instance the property was in foreclosure.
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