Arizona Multifamily Opportunistic Fund LLC

2026 Investor Report

Reviewing performance, portfolio progress, and strategic direction throughout 2025.

Sponsored & Managed by Neighborhood Ventures

Jump to Section

Who We Are

About Neighborhood Ventures

Founded in 2017, Neighborhood Ventures serves as the sponsor and manager of the Arizona Multifamily Opportunistic Fund, overseeing acquisitions, asset management, and investor reporting. The firm is led by experienced real estate professionals with over 100 years of combined experience acquiring, managing, and selling multifamily properties.

With the support of more than 15,000 investors on its investment platform, Neighborhood Ventures has launched 21 successful real estate offerings and continues to actively acquire and manage multifamily assets throughout the United States.

Co-Founder John Kobierowski is also the CEO of ABI Multifamily, Arizona's largest multifamily brokerage firm. This strategic relationship provides AMOF with access to high-quality investment opportunities, including off-market transactions, supporting the fund's long-term value-add acquisition strategy in the Phoenix metropolitan area.

What is AMOF?

The Arizona Multifamily Opportunistic Fund ("AMOF") is a 4-year investment fund launched in 2024 focused on acquiring, renovating, and operating distressed or underperforming multifamily properties throughout the Phoenix metropolitan area. The fund targets apartment communities where operational improvements, renovations, or recapitalization can unlock value, generating returns through increased occupancy, improved rents, and strategic asset management while positioning assets for long-term appreciation.

Phoenix Market Snapshot

2025 Market Overview

Market Supply Trends

The market continues to see significant multifamily expansion, with 25,534 units recently delivered and another 36,277 units currently under construction. An additional 16,843 units are planned, while average absorption remains strong at 1,702 units per month. Total inventory stands at 457,923 units.

Why Invest in Phoenix?

Source: ABI Multifamily Research, Phoenix MSA Multifamily Snap Stats – YE 2025; CoStar Market Analytics

2025 Portfolio Performance

Portfolio at a Glance

2025 NOI by Property

2025 annual NOI by property. Venture on Colter ($632,539) and Venture on 52nd ($560,791) are the portfolio's top two NOI contributors, collectively representing 51% of total portfolio NOI of $2,339,778.

Major Operations Highlights & Key Events

Across all six portfolio properties, AMOF generated $2,339,778 in net operating income in 2025 on $3,563,241 of total operating income, reflecting a blended NOI margin of 65.7%. Each property performed in line with or ahead of its respective business plan:

Property Detail

Venture on Colter

Venture on Colter is a 123-unit multifamily asset in a high-growth Phoenix submarket acquired directly from a lender at a 30%+ discount to prior peak value, creating immediate built-in equity. At acquisition the property was ~75% occupied; the business plan focuses on improving operations and property management to reach 90%+ occupancy, enabling conventional refinancing and ultimately targeting an $18.4M exit.

Monthly NOI has been consistent throughout the year, averaging $52,712 per month with only modest seasonal variation. This stability demonstrates that day-to-day operations are well-controlled. The relatively lower NOI margin of 58.3% compared to other portfolio assets reflects higher utility costs ($191,459 annually / 17.7% of income) — a common characteristic of assets where common-area utilities are owner-paid. As occupancy continues to strengthen, incremental rental income will flow directly to NOI improvement.

2025 Income & Expense Statement

The income and expense statement covers the partial operating period from acquisition through year-end. Total operating expenses of $452,073 represent 41.7% of income. Utilities are the largest expense category at 17.7%, followed by repairs & maintenance at 9.8%, which is consistent with active operational stabilization. No material, unusual items are present. The projected return upon sale is $756,475 on the fund's $640,000 investment.

Property Detail

Venture on 52nd Street

Venture on 52nd Street, a 71-unit property acquired through foreclosure for $11,000,000 ($155,000/unit). The prior owner completed extensive interior and exterior renovations, and the property was 90%+ occupied at acquisition. The fund's strategy targets raising rents to market rates through proactive management, with a three-year exit target at $17.0M ($240,000/unit).

Monthly NOI averaged $46,733 throughout the year, with a notable spike in April to approximately $65,000 driven by lease renewals and seasonal demand. The 64.4% NOI margin is among the strongest in the portfolio, reflecting the benefit of acquiring a fully-renovated, stabilized asset at a deep discount. The relatively lean expense ratio of 35.6% demonstrates disciplined cost management.

2025 Income & Expense Statement

The income and expense statement covers the partial operating period from acquisition through year-end. This shows total expenses of $310,605 (35.6% of income), the most efficient ratio among the three common equity positions. Repairs & maintenance at 11.9% is modest given the recently renovated condition of the asset. Utilities represent only 10.0% of income. The projected return upon sale is $537,478.

Property Detail

Venture on Maryland

Venture on Maryland, a 78-unit asset acquired pre-foreclosure for $10.7M ($137,000/unit), was purchased at a 35%+ discount to the prior 2022 acquisition price of $17.1M and $1.7M below the prior remaining loan balance. The project is investing $2.0M in targeted interior and exterior renovations to bring rents to market rates and position the asset for a $19.0M exit ($243,000/unit) within three years.

The monthly NOI chart reflects a partial year of operations, with activity beginning in September 2025 following mid-year acquisition. The September spike to approximately $70,000 represents catch-up collections and lease-up income, settling into a stabilizing range of ~$45,000–$50,000 per month in Q4. The 73.4% NOI margin is the highest among the common equity positions.

2025 Income & Expense Statement

The income and expense statement covers the partial operating period from acquisition through year-end. Total operating expenses of $77,411 (26.6% of income) are very lean. Utilities at 13.8% represent the largest expense line. As the $2.0M renovation progresses and rents are marked to market, operating income is expected to increase materially from the current $291,270 base.

Property Detail

Venture on 36th Street

Venture on 36th Street is a 30-unit community that underwent a comprehensive renovation program prior to AMOF's involvement. AMOF invested via a preferred equity position to support a strategic debt paydown and conventional refinancing. The renovation included upgraded flooring, fixtures, appliances, paint, and exterior enhancements. The property is now fully stabilized with strong occupancy and consistent cash flow, with the in-house property management team engaged in maintaining performance.

Monthly NOI has been exceptionally consistent throughout the year, ranging narrowly between $20,000 and $33,000 per month with an average of $27,028 — a hallmark of a truly stabilized asset. The February peak reflects a lease renewal cycle. The 72.9% NOI margin is excellent for a 30-unit property, reflecting the comprehensive renovation and stable occupancy. This predictable cash flow profile is exactly what a preferred equity investor seeks.

Trailing 12-Month Income & Expense Statement (T-12)

Operating expenses of $120,558 represent just 27.1% of income, one of the lowest expense ratios in the portfolio. Utilities are a minimal 4.2% of income because of resident-billed utilities on most units. The balanced expense structure across R&M (7.6%), operating expenses (10.1%), insurance (2.8%), and taxes (2.4%) indicates a well-managed, post-renovation asset with no deferred maintenance. The amount invested is expected to generate a $474,642 projected return at the 16% preferred rate.

Property Detail

Venture on 12th Place

Venture on 12th Place is a 30-unit community built in 1971, acquired through a preferred equity investment that facilitated a critical debt restructuring: converting $2.0M of senior debt into preferred equity reduced total leverage from $6.4M to $4.4M and enabled the placement of fixed-rate financing. Prior to AMOF's involvement, the asset underwent a comprehensive renovation including new flooring, fixtures, appliances, paint, and exterior improvements. The business plan targets either a $10.35M exit ($345,000/unit) or a refinancing at the three-year hold.

Monthly NOI averaged $32,296 throughout the year, with a notable April spike to approximately $45,000 driven by lease-up activity. The 71.7% NOI margin is strong, consistent with the fully renovated and stabilized status of the asset. The fixed-rate financing structure enabled by the debt restructuring significantly reduces the interest rate risk that originally destabilized the property's prior capital structure. At $1,963,000, this is the largest preferred equity position in the portfolio, and the $965,860 projected return reflects the 16% preferred rate applied over the fund's hold period.

Trailing 12-Month Income & Expense Statement (T-12)

Expenses of $153,336 (28.3% of income) are well-controlled. The relatively higher property insurance at 5.6% is consistent with the age of the building (1971) and multi-building configuration. Operating expenses at 10.8% reflect our professional management fees and routine property overhead. The low utility cost of 4.5% is due to resident-billed utilities across most units.

Property Detail

Venture on Central

Venture on Central is a 16-unit mid-century community in the highly desirable North Central Phoenix submarket, a neighborhood of multimillion-dollar single-family homes along Central Avenue. AMOF's mezzanine debt position facilitated a loan extension and partial principal paydown, strengthening the capital structure. A targeted renovation modernized interiors while preserving the property's mid-century character. The property is currently 100% occupied with rents exceeding $2,000 per month — among the highest per-unit rents in the portfolio.

Monthly NOI is the most consistent in the entire portfolio, ranging tightly between $14,000 and $21,000 per month and averaging $18,391. This remarkable stability on a 16-unit property reflects both 100% occupancy and the premium rent position in a submarket with an extremely limited supply of comparable vintage product. The 66.8% NOI margin is solid given the higher maintenance intensity of a 1959-built asset with ongoing interior renovation. The mezzanine debt structure targets a 15% return on the $1,033,000 invested.

Trailing 12-Month Income & Expense Statement (T-12)

Operating expenses of $109,479 (33.2% of income) are reasonable for a 65-year-old mid-century building. R&M at 9.9% and operating expenses at 9.4% are in line with the ongoing renovation program and active management required for an older asset. The 6.6% utility expense and the balanced insurance (4.4%) and tax (2.9%) lines reflect a fully operational stabilized property. At 100% occupancy with above-market rents, the $220,698 NOI provides strong coverage of the 15% preferred return on the fund's $1,033,000 mezzanine position.

2026 Outlook

Phoenix Market Forecast

Market Conditions & Strategic Positioning

As we enter 2026, the Phoenix multifamily market remains in a period of significant supply absorption following one of the largest development cycles in modern history. While near-term headwinds persist, the fund acquisition strategy — targeting distressed assets at substantial discounts to prior values — positions AMOF's portfolio to outperform market benchmarks through the cycle.

Source: CoStar Market Analytics, Phoenix Multifamily Market Report (March 2026)

AMOF Strategic Positioning for 2026

Despite near-term market softness, Neighborhood Ventures remains focused on executing the fund's value-add strategy with discipline. Each portfolio property is managed to maximize operational performance while the broader market works through its supply overhang. The fund's acquisition strategy of targeting properties at 30%+ discounts to prior peak values provides a durable margin of safety and strong risk-adjusted return potential.

As supply pressure eases through 2026 into 2027, improving market fundamentals are expected to support rent growth and favorable exit conditions across the portfolio. Management will continue executing targeted capital improvements, pursuing operational efficiencies, and evaluating exit opportunities as they arise.

Thank You

We'd like to thank all of our investors for their trust in our team.

Please reach out with any questions about this report:

[email protected]

Neighborhood Ventures  ·  www.neighborhood.ventures