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-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 preferential annual return of 12% on their investment when the property was sold.
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About 24% of the total capital of 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, Neighborhood Ventures’ very first investment project, had 104 Arizona residents who each invested an average of $ 4,800 in the property, which represents about 31% of the total capital of the project.
With the purchase of each property, the Neighborhood Ventures team completely remodeled all units, including upgraded appliances, floors, cabinets, counters, light fixtures and common areas. Following the renovation, the rents were brought into line with the market.
“The Arizona real estate market is on fire, and Neighborhood Ventures is empowering all Arizona residents to get involved, through our unique real estate crowdfunding model, which we call community investing,” said the co- founder of Neighborhood Ventures, John Kobierowski. “Our investors love that they can invest in commercial real estate, monitor progress as we renovate and stabilize rents on our investment properties, and don’t have to do the heavy lifting themselves.”
“We believe that multi-family assets will continue to generate strong returns without the volatility of the stock market,” said Jamison Manwaring, co-founder of Neighborhood Ventures. “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, contributing $ 659,344 to 87 community investors.
Neighborhood Ventures was started in September 2017 by Jamison Manwaring, former technology analyst at Goldman Sachs and vice president of investor relations at LifeLock, and John Kobierowski, an apartment industry veteran and chief executive officer of ‘ABI Multifamily. The two partners teamed up to create Neighborhood Ventures when new laws were passed that allowed unaccredited investors to become shareholders of Phoenix apartment projects with an investment as low as $ 1,000.
Arizona residents interested in learning more about investing in their community can visit the neighborhood. Accredited investors from all 50 states can now invest in the Neighborhood Ventures Fund, which will co-invest in 5-10 projects with local Arizona investors.