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Neighborhood Ventures’ NV REIT to acquire first property
Neighborhood Ventures announced that Neighborhood Ventures Real Estate Income Trust (NV REIT) has entered into a definitive agreement to acquire its first property, Venture on Williams. The acquisition will be through an equity buyout valued at $5 million or $250,000 per unit, which implies a 5.5 percent forward 12-month cap rate.
Venture on Williams, a 20-unit apartment building in Mesa, Ariz., was initially purchased by Neighborhood Ventures in 2020 with capital the company raised through investor crowdfunding. NV REIT will benefit from the 3.8 percent interest rate debt already on the property, and all Venture on Williams investors will receive their full principal investment plus a 12 percent annual preferred return, or have the option to roll their proceeds into the REIT.
As of today, Venture on Williams is 100 percent occupied and cash flowing, which means NV REIT will be paying investors their first 5 percent annual distributions beginning in April.