Neighborhood Ventures (NV), a real estate crowdfunding company, closed on Venture on Colter, a 123-unit multifamily property in Central Phoenix near Grand Canyon University and I-17.
NV’s Jamison Manwaring added, “For the first time, we executed a direct lender purchase, allowing us to move swiftly and secure this property at a compelling price. This acquisition not only enhances our portfolio with a cash-flowing, well-renovated asset but also provides our investors with a unique opportunity to benefit from long-term growth and attractive tax-deferred advantages.”
Venture on Colter was formerly known as Thom Slate on Colter.
The company acquired Venture on Colter at a significant discount, recognizing it as a classic distressed opportunity. The seller originally purchased the property at a high valuation, leveraging low-interest debt. However, with rising interest rates in 2024, they are now unable to service the debt, creating a unique opportunity for us to acquire the building at its debt value directly from the bank.
By purchasing below the asset’s intrinsic value, NV immediately gain built-in equity. The property is currently 75% occupied. NV plans to enhance operations and property management, increasing occupancy to over 90%. Once occupancy exceeds 90% for a sustained period of 90+ days, we will position the property for refinancing through a conventional bank loan.
After a few years of stable cash flow and continued property management improvements, we anticipate selling the asset at an estimated strike price of $18.4 million, realizing significant value appreciation.
Neighborhood Ventures’ acquires distressed assets in high-growth markets. The company anticipates that, with strategic property management and focused leasing efforts, full occupancy will be achieved within the next six months.
