#United States #Neighborhood Ventures #Flagstaff #UPREIT

Neighborhood Ventures Finalizes UPREIT Transaction for Venture on Elden in Flagstaff

Introduction
Neighborhood Ventures (NV REIT), a pioneering real estate investment firm, has recently unveiled its latest venture involving a UPREIT transaction for the Venture on Elden, a multifamily property located in Flagstaff, Arizona. Established in 2021, this property consists of 17 units and has shown consistent performance, making it a valuable addition to NV REIT's investment portfolio.

The Significance of the UPREIT Transaction

The UPREIT transaction permits current investors to transfer their capital into the NV REIT while deferring any immediate capital gains taxes associated with their investments. This strategy underscores the opportunity for investors to realize potential appreciation in property value while also maintaining a steady cash flow.
Jamison Manwaring, Co-founder and CEO of Neighborhood Ventures, expressed enthusiasm about the transaction, stating, "Elden has been a strong performer in our portfolio, and this UPREIT transaction has allowed our investors to continue participating in its long-term success. Flagstaff's housing market remains highly constrained, which supports rent growth and property appreciation."
Additionally, investors benefit from tax advantages similar to those offered in a 1031 exchange, allowing them to roll over their funds and potentially enhance their overall financial strategies.

Investment Benefits

The decision to include Venture on Elden in the NV REIT portfolio provides numerous benefits for investors:

• - Continued Cash Flow Growth: The property boasts an impressive occupancy rate, contributing to NV REIT's overall 95% occupancy metric.
• - Monthly Dividend Yield: Investors currently enjoy a rich 5% annual dividend, distributed monthly, enhancing the attractiveness of this investment strategy.
• - Property Appreciation: Investors will partake in long-term property value growth, geared towards enhancing NV REIT's Net Asset Value (NAV).
• - Tax-Deferred Profits: Just like in 1031 exchanges, this enables capital gains tax deferral, creating opportunities for compounding growth.
• - Enhanced Portfolio Strength: With the integration of this property, NV REIT's average interest rates remain stable, reinforcing its financial health by improving the loan-to-value ratio from 54% to 50%.

Property Details

Originally constructed in 1965, Venture on Elden features 16 two-bedroom / one-bathroom units alongside a studio apartment, all strategically located near Historic Route 66 and I-40. Neighborhood Ventures has invested in extensive renovations, which have revitalized the property through modern cabinetry, fixtures, appliances, and reimagined landscaping.
John Kobierowski, Co-founder and President of Real Estate at Neighborhood Ventures, noted, "We acquired it at the right time, improved it significantly, and now, through this UPREIT transaction, we’re allowing investors to continue benefiting from its success while strengthening the REIT’s overall portfolio."

Conclusion

Neighborhood Ventures is dedicated to building a strong portfolio anchored in high-quality, cash-flowing multifamily assets within Arizona's robust property markets. This recent UPREIT transaction showcases NV REIT’s commitment to delivering stable returns and tax-efficient growth strategies for its investors.
Interested individuals can discover further investment opportunities and updates at neighborhood.ventures. However, prospective investors are advised to be mindful that past performance does not guarantee future results and to consider potential market fluctuations that may impact investment outcomes.
For inquiries, reach out to Lynn Munroe at 845-548-1211.