The JKAM team is excited to share our newest investment opportunity, Tides on 61st, a 156 Unit Multifamily value-add project in a strong upwardly trending location near Phoenix.
Our Operating Partner is a leading commercial real estate investment company, with a current portfolio of 24,500+ units and 29 similar apartment communities taken full cycle in Arizona averaging 1.8 years of hold time and investor IRR of 54%.
Key Investment Details
Preferred Return: 10% | Projected IRR: 15-18%
Projected Equity Multiple: 1.60x | Projected Hold Period: 3 yrs
Proven Value-Add Plan:
- Our operating partners have already renovated the exterior grounds plus 37 of the 156 units, and renovated units are outperforming initial projections by $41 per month
- The business plan includes an injection of $2.3m in renovations, to renovate the remaining 119 outdated units, grow NOI from $1.3m today to $2.4m in year 3, and sell
- In-place rents are well below market, with approximately $180 of average loss-to-lease providing a significant opportunity to grow rental income on renewal
- Planned renovations will follow our operating partner’s brand design, which includes new quartz countertops, stainless steel appliances, upgraded shaker-style cabinets with pulls, brushed nickel hardware, upgraded plumbing & lighting fixtures, a contemporary paint scheme, wood-like flooring and adding washers/dryers in those units without.
Strong Market, Glendale, AZ:
- The South Glendale submarket in Phoenix continues to experience rapid rent growth; rental rates increased 26.8% in 2021 and rents are projected to increase 21.5% in 2022, averaging 6.0% annually for the next few years.
- Through this unprecedented rent growth, apartment occupancy increased, rising from 95% in 2020 to 97% in 2021.
- Maricopa County has been #1 in population growth over the last ten years and the Phoenix MSA has ranked #3 in the country for net migration.
- Phoenix has also added half a million jobs in the last ten years and has experienced 2.8% year-over-year job growth compared to the national average of 1.6% from 2010 to 2019.
Highly Attractive Property & Location:
- The community sits on over 4 acres, consists of 156 units across 7 three story garden-style buildings, and is 98% occupied.
- The property is located in the strong Glendale submarket and only 1 mile from route 60 which runs directly into downtown Phoenix.
- The community features numerous amenities including a pool, dog park, courtyard, picnic/BBQ area, clubhouse with a full-size kitchen and laundry facility.
- The diverse unit mix of approximately 16% studio, 44% one-bedroom, 39% two-bedroom and 1% three-bedroom apartment homes, appeals strongly to the target demographic: young professionals and families who are drawn to modern, hip communities and prioritize excellent locations.
Expert Operating Partners & Track Record:
- This will be our 3rd partnership with our operating partners. Our 1st partnership was also in Phoenix (only 4 miles away) and was sold in October 2021. The project greatly outperformed projections, the JKAM Diversified RE Fund I earned 97% IRR after just 1 year. (Learn More)
- Our operating partners have taken 29 similar apartment communities full cycle in Arizona, with an average hold time of 1.8 years and investor IRR of 54%.
- Their current portfolio consists of 79 apartment communities and 24,500+ units with $5,100,000,000 in value.
Steps to invest:
- Make A Reservation
- Schedule A Call
- Verify Accreditation
- Review & E-sign JKAM Flexible Allocation Fund Documents
- Reservation Deadline April 15th
- Funding Deadline April 22nd
- This offering has limited space and will be on a first come first serve basis.