Innovative Deal Provides Tax-Deferred Benefits and Flexible Liquidity Options for Investors Amidst Changing Market Conditions
(PRUnderground) August 1st, 2024
Neighborhood Ventures (NV REIT), a leading real estate investment company utilizing crowdfunding to enable both accredited and non-accredited investors to invest in multifamily properties, announced today the acquisition of Venture at Mountain View through a unique tax-deferred UPREIT transaction. This innovative move offers existing investors substantial benefits, including flexible liquidity options.
Venture at Mountain View is a 26-unit apartment complex located at 9633 North 17th Avenue, Phoenix, Arizona 85021. The property, originally built in 1983, consists of ten 1-bedroom/1-bathroom units and sixteen 2-bedroom/1-bathroom units, all of which have been recently renovated with new cabinetry, new fixtures, updated painting, and appliances.
“This UPREIT transaction allows our investors to fully realize their 12% annual return on their investment in Mountain View LLC,” said Jamison Manwaring, Co-founder and CEO of Neighborhood Ventures. “Their existing shares in Mountain View have now converted to NV REIT Partnership shares, providing them the flexibility to liquidate shares through NV REIT as needed.”
Advantages of the UPREIT Structure
This UPREIT transaction allows investors to roll over their money tax-deferred, similar to a 1031 exchange, offering a more favorable tax position and the opportunity to grow and compound gains on tax-deferred capital. Unlike the previous transaction with Venture on Williams, where investors had to pay capital gains taxes after the sale and again when redeeming REIT shares, the UPREIT structure provides significant tax advantages.
A Promising Future for NV REIT
The acquisition of Venture at Mountain View brings tremendous value to NV REIT. The property is fully occupied and generating solid cash flows, with low 3.6% fixed-rate debt. The property is poised for solid appreciation and rent growth over the next several years, further enhancing the value of NV REIT assets.
“We believe the acquisition of Venture at Mountain View offers tremendous value to the REIT,” added Manwaring. “The property is fully occupied and generating solid cash flows. It also has low 3.6% fixed-rate debt and we expect solid property appreciation and rent growth over the next several years.”
Benefits to Investors
Investors in NV REIT can look forward to several benefits from this transaction, including:
- A 5% Monthly Dividend: Distributed on the 10th of every month, providing a steady income stream.
- 80% Appreciation Growth: As the value of all NV REIT assets increases over time, investors will share in the appreciation growth. Current NV REIT assets include Venture on Williams and Venture at Mountain View, with more cash-flowing properties with fixed-rate debt to be added in the future. The appreciation growth of the assets, which is valuated every year, will be reflected in the Net Asset Value share price.
- Tax-Deferred Profits: Similar to a 1031 exchange, profits from the Mountain View property acquisition will be tax-deferred, allowing investors to grow and compound their gains on tax-deferred capital.
- Liquidity Options: Investors have the flexibility to cash out their shares through NV REIT as needed.
This transaction underscores Neighborhood Ventures’ commitment to delivering value and innovative solutions to its investors. By leveraging the UPREIT structure, NV REIT continues to navigate the market while ensuring attractive returns and tax advantages for its investors.
To learn more about the Neighborhood Ventures REIT fund that is open to all investors, both accredited and non-accredited, visit: neighborhood.ventures
Prospective investors should bear in mind that past performance is no guarantee of future results and that there can be no assurance that projects will achieve projected results.
In addition, actual future conditions may require actions that differ from those contemplated at this time, and prospective investors are cautioned not to place undue reliance on these projections. This presentation includes certain non-GAAP financial measures. Certain statements such as “believes”, “anticipates”, “plans”, “intends”, “expects”, “target” “preferred” and words of similar import constitute forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.
About Neighborhood Ventures
Neighborhood Ventures offers investment opportunities to accredited and non-accredited individual investors of all income levels, with a minimum investment amount of just $1,000. Since its inception, the company has sponsored more equity crowdfunding offerings than any other real estate investment company nationwide. To date, the group has purchased 15 properties and sold six of them, paying investors a 12% preferred annual return on their investments. Find the latest information on investment opportunities and progress updates on all projects at neighborhood.ventures.
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Original Press Release.
