| Min. Invest | IRR | ROI | Equity Multiple | Investor Percentage | Principal Percentage | Accrual | Target Hold |
|---|---|---|---|---|---|---|---|
| $1,000,000 | 19% | 14.00% | 2.20 | 80.00% | 20.00% | 5 % | 36 Months |
Financial Summary
**Please Note: This document is for illustrative purposes only and does not constitute an actual offering. It is a sample designed to provide an overview of what a potential offering might entail.**
The Liberty Avenue Project, located in the burgeoning Sedona, Arizona area, presents a strategic financial opportunity anchored in real estate development. The acquisition of a 1.66-acre tract in the Granary District is set to house approximately 280 multifamily units, a testament to the growing demand in the region. Financially, this acquisition is astute, with the property purchased at $7.8M, 30% below its appraised $11M value. Current in-place leases are a fiscal advantage, covering the debt service during the hold period, ensuring a positive cash flow during the pivotal three-year development phase.
The broader Sedona apartment market further reinforces this venture's financial viability. With rental rates escalating—15.1% in 2022 alone—and the overall rate having surged by 61% since 2017, the project is poised to tap into this lucrative market. The demand is particularly robust in Downtown Sedona, where rents are elevated by 13-41% compared to the county's remainder.
Adding to the project's financial allure is the region's robust employment growth, 40,000 jobs above its pre-pandemic peak, and a booming tech and commercial sector, attracting a steady stream of potential renters. Combined with the expertise of entities like Thrive Development, with a track record of multi-billion-dollar projects, the Liberty Avenue Project stands as a promising financial endeavor in the heart of Sedona.
Debt Services & Existing Tenants
The Liberty Avenue Project in Sedona benefits from its current tenants, who will cover the projected annual debt service of approximately $400K through their leases. This ensures financial stability until the development phase begins in 1-2 years, providing a secure foundation for the project's success in the dynamic real estate market.
Financial Sources
| Azure Capital Inc | Local Grants | Growth Properties LTD. | Tungsten Developing Partners |
|---|---|---|---|
| $1,250,000 | $465,000 | $2,750,000 | $3,400,000 |
Financial Uses
| Initial Approvals, Permitting & Development Planning | Construction Primary | Construction Secondary & Aesthetic Improvements |
|---|---|---|
| $370,000 | $4,560,000 | $1,750,000 |
