Boutique Rental Community In Phoenix MSA Now Open For Investments

Real estate investment platform RealtyMogul opened the investing window to prospective investors for a boutique rental community in Peoria, Arizona. 

The Tallows @ Peoria is a 100-unit garden-style multifamily community in the Phoenix metropolitan statistical area (MSA), where there is growing demand for Class B product because of the lack of supply. Offering sponsor RSN Property Group believes the supply and demand imbalance will give the property an advantage.

RSN plans to implement a value-adding business strategy involving extensive renovations to unit interiors and commons areas that will increase cash flows. Along with the complete makeover of branding, marketing strategy and management procedures, apartment interiors will get new granite countertops, stainless steel appliances and washer and dryer units. In the common areas, the pool and gym will be renovated and a playground will be added. 

The improvements will enable RSN to increase rent by $200 to $300 per month. Three comparable properties adjacent to The Tallows already have raised rates. 

The property is being acquired at a 20% discount compared to recent sales of comparable properties in the submarket, leaving room for appreciation upside. Despite the property requiring a capital expenditure program, occupancy has remained above the market average at 94.6%. 

• Minimum investment: $35,000
• Target internal rate of return (IRR): 15.3%
• Target equity multiple: 1.92x
• Target cash yield: 5.7%
• Target investment term: 60 months

Founded in 2014, RSN Property Group is a real estate investment firm with experience across multiple real estate asset classes. The group specializes in locating, acquiring and operating property that presents significant value upside in key growth markets. RSN has acquired and operated three comparable properties in the Phoenix area and has successfully implemented the same value-add strategy across 24 properties with a value of more than $883 million.

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