| 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 |
Strategy Details
**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 property, strategically located in the thriving Sedona, Arizona area, is set to capitalize on the increasing demand for apartment living. With a low vacancy rate, the project aims to offer top-tier residential solutions, especially given the rising costs of single-family homes in the region. The development emphasizes diversification, evident in its multifamily communities, senior living facilities, and self-storage centers. This multifaceted approach, combined with investments across varying geographies and durations, ensures the project's resilience and appeal. The proximity to key urban amenities and the commitment to quality make the property a promising venture in the real estate landscape.
Sedona's apartment market has changed significantly within two years due to persistent supply pressure and weaker demand. Annual deliveries are at 4,900 units, compared to the five-year average of 4,200 units. In the face of ongoing supply waves and slower leasing velocity, vacancies have risen to 10.5%.
The vacancy rate in the Downtown Sedona Submarket will have an outsized impact on the metro overall. Vacancies have climbed faster than the metro average due to consistent supply waves. Several thousand units are underway, and more than 5,000 units have been delivered over the past five years. Vacancies Downtown typically trend above the metro average due largely to the number of unstabilized properties throughout the submarket.
Even with the metro's median household income at about $91,000 and growing 5.0% annually, housing affordability has worsened. The median home price in Sedona has risen by roughly 50% since the pandemic began, far outpacing household income growth. Skyrocketing home values are likely pricing out many potential homebuyers and keeping them in the renter pool.
Strategic Partner: THRIVE Development
Thrive is a fully integrated development company with over 40 years of experience in real estate development. They adopt a comprehensive approach to the design and development of their projects. The team has successfully completed a range of projects, including commercial, residential, and land development. Presently, Thrive has, or is in the midst of completing, 3,456 multifamily units valued at over $1 billion. One notable project, Pacific Yard, is awaiting a building permit from Sedona and is set to commence in the spring. Located close to this project, the Thrive team is well-acquainted with the city administration and the area.
Thrive specializes in crafting long-term real estate solutions for various sectors, from medical and dental to professional office spaces and industrial users. Their aim is to offer optimal environments for businesses and vibrant living spaces for residents across the western U.S. Thrive prioritizes relationship-driven partnerships, encompassing tenants, contractors, city officials, investors, and their team. Overall, Thrive has successfully developed thousands of multifamily units and over 1 million sq/ft of commercial space across 10 western states.
Catalyst Project | Adjacent to the Property West Village, a THRIVE initiative, is set to transform the area adjacent to the Liberty Ave Project. Spanning 4.63 acres, it will feature four buildings housing 602 apartment units, 180,000 square feet of office/lab space, and 8,000 square feet of retail. This strategic development promises to integrate living, working, and retail, amplifying the region's appeal and potential.
