Real Estate Crowdfunding Offering For Phoenix Apartment Community Is Targeting A 16.1% Annualized Return

One of RealtyMogul’s newest value-add opportunities is now live: Azura Apartments. The project is aiming for an internal rate of return (IRR) between 15.1% and 17.1%.

The 387-unit garden-style apartment community is located in Phoenix, Arizona. Being in the heart of the actively gentrified North Mountain submarket of Phoenix, Azura apartments sit right next to the revitalized Metrocenter Mall, key employment corridors, highly useful transportation nodes such as the city’s light rail extension, and most importantly for the property, the cities best educational institutions.

Investment Highlights: The sponsor for Azura Apartments is looking for a minimum investment of $35,000 with an estimated holding period of 4 years. The deal is targeting an equity multiple of about 1.81x and distribution plans are set for February 2023.

The sponsor of the opportunity, SB Real Estate Partners, cunningly acquired the property for $85.15 million, valuing each unit at $220k, which is a significant discount to the real-time sale comps transacting at $275k per unit. SB Real Estate Partners (SBREP) specializes in Phoenix-based properties, in which three investments have produced investor returns of ~90% IRR and ~2.2x equity multiples in less than 18 months.

Azura apartments offer a price point $300 lower than the average nearby neighborhood because of its out-of-state seller, who leaves 100% of the units in pristine condition with massive potential for renovation. Phoenix, as a real estate location, has proven to be successful, posting rent growth of 20% in 2021, which is the best performing apartment market in the United States.

Deal Sponsor: As stated previously, the sponsor of Azura Apartments, SB Real Estate Partners, is a real estate investment firm that specializes in multi-family properties. The company is committed to acquiring and managing value-add investments throughout the United States.

With great experience in the field, SBREP has consistently brought great investment opportunities that focus on maximizing value and mitigating risk. The managing principal of SBREP, Srijin Bandyopadhyay, provides the sponsor with extensive knowledge, as he alone closed over $1.2 billion in multifamily acquisitions.

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Photo: Courtesy of RealtyMogul