Property Growth in Tempe, AZ Means New Opportunity for Investors
Investors hunting for higher yield don’t have it easy. They almost never have.
Cash flow from dividend stocks and bonds are either paltry—or dangerous. Funds, REITs and MLPs might look attractive at first glance, but in the end, hefty management fees leave investors with middling returns and meager cash flow.
It’s an old story. For over half a century, the majority of investors have found themselves locked out from direct access to one of the greatest tools of wealth generation on the market—property.
But now a nationally renowned operator is bringing capable investors direct access to real estate opportunities. No middlemen. No high fees eating away at returns. No compromise that leaves investors feeling cold when returns hit the table.
This leading operator—with 35 multi-family projects around the country, $1.6 Billion in assets under management, and 26 full-cycle properties averaging a 13.6% return to investors—is giving capable investors an opportunity to finally participate in the higher cash flows generated by real estate.
A principal of this leading firm says, “Our core value is to put the investor first, and opening up institutional-quality opportunities to a wider prospective investor network puts that core value into action. Greater access for the investment community, means more choice, more value for the investor.”
The operator is inaugurating this new wave of increased access by inviting investors to participate in a Value Add, Cash Flowing real estate opportunity located in Tempe, AZ.
The property, a 270-unit garden style multi-family apartment, is poised to benefit from Tempe’s solid growth market. The city of Tempe is a desirable city for apartment renters due to its central location, proximity to employment centers, and active lifestyle.
In addition to Tempe’s healthy population growth of 4.9%, the city’s apartment vacancy clocked in at 3.7% in Q1 of this year, and will close the year with an estimated 3.5% year-end rental growth. All of which gives the property an excellent bedrock of fundamentals to achieve upside potential. Additionally, through property upgrades, especially to the interior of the facility, management estimates it will achieve estimated rental increases of $75-$100.
Under Management’s Value Add strategy together with Tempe’s fundamental rental growth, the asset is targeting an 18-25% total annual return in cash flow and appreciation over 3-year hold.
A principal of the operating company is firmly optimistic. “When you align your own interests with those of the investors, it’s a win-win situation. The property’s excellent location and excellent rental demographics show great potential to fulfill our expectations— and in turn, fulfill the expectations of investors.”
*This material does not constitute an offer and is authorized for use only when accompanied or preceded by a definitive confidential private placement memorandum. Reference is made to the memorandum for a statement of risks and terms of the offering. The information set forth herein is qualified in its entirely by the memorandum. All potential investors must read the memorandum and no person may invest without acknowledging receipt and complete review of the memorandum. No public market exists for the interests and it is highly unlikely that such market will develop. The interests are not freely transferable and an investment should be considered solely as a long term investment.