RealtyMogul: The Lennox at Tempe

The real estate investment platform RealtyMogul has opened the pledging window for an equity investment opportunity in Tempe, Arizona. 

RealtyMogul partnered with the sponsor of the equity offering, RSN Property Group, which will be renovating a two-story garden-style 88-unit apartment community in an affluent Tempe neighborhood. The sponsor will be implementing a value-add strategy, including interior and exterior renovations to the residential units and common areas. With the planned renovations and professional management of the project, the sponsor expects to be able to increase in-place rents and overall property value.

The property will undergo an immediate rebranding and marketing campaign, including changing the name from The Gallery to The Lennox. Interior renovations will include the installation of granite countertops and stainless steel appliances. The exterior will have a new paint job, upgraded landscaping and improvement to overall curb appeal. The common areas, including the pool and fitness center, will be renovated and improved upon while a new playground and dog park will be added to the property.

The average yearly income of people living near the complex is over $100,000. Because of the above-average income level, a farmers’ market, several premium outlets, restaurants and other businesses are across the street from The Lennox, the project is expected to see high demand.  

According to the Arizona office of economic opportunity, metropolitan Phoenix is projected to be one of the fastest-growing metro areas in the country over the next few years. The sponsor projects the ability to raise rents to the market rate, an increase of $500 per month while maintaining or building upon the current 96.5% occupancy rate. 

RSN Property Group is a real estate investment firm founded in 2014 with experience across multiple real estate asset classes. The group specializes in locating, acquiring and operating property that offers significant value upside in key growth markets. RSN has previously acquired and operated three comparable properties in the Phoenix area. 

• Minimum investment: $35,000
• Target internal rate of return (IRR): 15.4%
• Target equity multiple: 1.94x
• Target cash yield: 6.2%
• Target investment term: five years

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Photo courtesy of RealtyMogul