Invest in Venture on the 16th to support the acquisition and operation of the asset. Our business plan includes three years of in-house property management to bring rents to market levels—currently approximately 9% below market. The asset is projected for exit in year three at a 5.25% cap rate, with an estimated value of $26.5 million.

These statements are subject to risks and uncertainties, including market conditions, interest rate fluctuations, and tenant demand. While we make assumptions based on current trends, actual results may differ materially. Investors should review all risk factors before committing capital.

Property

￭ 86-unit multifamily property located at 6315 N 16th St, Phoenix, AZ 85016 in the Biltmore/Camelback Corridor. Unit mix is primarily spacious 2-bed/2-bath layouts, complemented by select 3- and 4-bedroom units averaging 930 square feet.

￭ Current occupancy is 94%.

￭ Amenities include a resort-style pool, fitness center, BBQ gazebo, dog park, courtyard games, and covered parking. Recent renovations feature new systems, windows, and modern interiors with quartz counters, stainless appliances, and in-unit washers/dryers.

Location & Market

￭ Dining and Entertainment: Local favorites include The Henry, Flower Child, Hopdoddy, Snooze, and Pizzeria Bianco, offering a mix of trendy dining, casual bites, and Phoenix staples.

￭ Shopping and Accessibility: Minutes from Biltmore Fashion Park, Town & Country, and Uptown Plaza retail. Easy access to SR-51, Camelback Corridor offices, Midtown Phoenix, and Central Phoenix healthcare centers.

￭ Recreation: Close to the Arizona Biltmore Resort and Golf Club, Wrigley Mansion, Royal Palms, and The Phoenician Resort, with nearby parks, fitness clubs, and recreational trails ideal for residents and families alike.

Sponsor

￭ Neighborhood Ventures was founded in 2018, has had 21 successful offerings with 9 successful exits, bringing an average of 37% Project Level IRR.

Business Plan

￭ After acquisition, our focus will shift to optimizing performance through disciplined asset management and property management efficiencies.

￭ By enhancing operational execution and sustaining strong tenant satisfaction, we aim to increase net operating income and overall asset value.

￭ The business plan targets a three-year hold period, positioning the property for a strategic sale once value creation objectives have been achieved.

Property Management

￭ Neighborhood Ventures uses their in-house property management team, Venture Residences.

￭ By managing their own properties, Venture Residences can increase occupancy rates by 20% per property on average while simultaneously reducing costs.

￭ On average the in-house management can bring occupancy above 90% within 6 months.

Financing

Sponsor received an 5.39% loan, fixed for 5 years, with terms including 71% LTV ($13.75M).

• 12% Preferred Return

• 6% Preferred Return
• 80/20 split until 15% IRR
• 10/90 split thereafter
• 17.5% Projected IRR

Market Upside Analysis

• The current rents at Venture on 16th remain well below prevailing Phoenix market averages, presenting a compelling opportunity for natural rent growth.
• With two-bedroom units averaging $1,484 compared to market rents of $1,549, the property is positioned to capture organic gains through renewals.
• This pricing gap supports high occupancy and tenant retention while management implements modest rent increases aligned with market trends.

Our business plan is structured for a 2–3-year hold, giving us the flexibility to wait for a favorable market cycle. We are prepared to pursue a refinance or partial recapitalization should a sale not be viable within the original timeframe.