Online real estate investment platform Neighborhood Ventures has launched Opportunistic Fund II, a $25-million vehicle to acquire between five and eight distressed multifamily properties across high-growth U.S. markets, including Denver, Tampa, Salt Lake City, Charlotte, Dallas and Phoenix. The new fund targets mid-sized multifamily communities purchased at 30% or more below intrinsic value.
“Opportunistic Fund II scales a proven strategy,” said Jamison Manwaring, co-founder & CEO of Phoenix-based Neighborhood Ventures. “We launched our first Opportunistic Fund to capitalize on multifamily distress in Arizona, and now we’re expanding geographically to access deeper deal flow. Oversupply of newly constructed multifamily buildings in these Sunbelt and Western markets, coupled with high interest rates, has built a refinancing wall that’s driven operators to sell at distressed prices.”
The strategy entails acquiring properties at a discount, deploying capital for operational and capital improvements, then exiting into a recovering market, according to Neighborhood Ventures.
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