Tides on 61st Direct Investment

Direct Investments, Opportunities

Alternative Investors Mastermind Postcast

Hosted by Jack Krupey

Alternative Investors
Mastermind Postcast

Hosted by Jack Krupey

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

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Investment Highlights

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  • The business plan includes an injection of $2.3m in renovations, to renovate the remaining 119 outdated units, grow NOI from $1.3m today to $2.4m in year 3, and sell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.
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Steps to invest:

    1. Make A Reservation
    2. Schedule A Call
    3. Verify Accreditation
    4. Review & E-sign JKAM Flexible Allocation Fund Documents
    5. Fund

Investor Timeline:

    1. Reservation Deadline April 15th
    2. Funding Deadline April 22nd
    3. This offering has limited space and will be on a first come first serve basis.