A long-standing hotel in East Valley is set for a new lease on life, thanks to Neighborhood Ventures, a real estate crowdfunding firm out of Phoenix. The company, which focuses on value-add investments, has received the go-ahead from the Mesa City Council to turn the three-acre, former American Inn & Suites locale into a 120-unit apartment complex, aptly named Venture on Country Club. According to ABC15, the blessing came down on May 20, marking a turning point for a property that has been in transition since August 2021.
The site, acquired for just over $13 million, offers an ideal template for conversion with its kitchen-equipped rooms—a holdover from its days as an extended-stay hotel. Jamison Manwaring, co-founder and CEO of Neighborhood Ventures, indicated the existing kitchens would facilitate the transformation, which has seen renovations in anticipation of rezoning. Manwaring noted, "A lot of the new apartments that are being added are Class A and fairly expensive units to rent, and there's a big need for apartments that are more affordable and not just Class A luxury apartments," in a statement obtained by Phoenix Business Journal.
Rents are slated to be competitive with studio, one-bedroom, and two-bedroom options priced at approximately $1,100, $1,300, and $1,700 a month respectively. The deal sweetens with included utilities and internet access. Over 300 investors pitched into the project pot, raising $3.5 million for the cause. Meanwhile, Phoenix-based Gammage & Burnham lent their expertise to rezone the property within city limits.
But the ambitions of Neighborhood Ventures stretch further than a single project. Earlier in the year, the firm laid the groundwork for its Arizona Multifamily Opportunistic Fund with an aim to pool $75 million for acquiring several properties under value. "We're still open to properties that we would convert over and now having one under our belt we feel better about looking at the next one," Manwaring told, Phoenix Business Journal. As the state grapples with a housing shortage, the move to reconceptualize hospitality spaces could signify a new trend in Arizona's real estate landscape.
Since its 2017 inception, Neighborhood Ventures has seized the real estate crowdfunding space, amassing a sizeable investor body and a portfolio including multifamily projects and a Tempe retail center. Furthermore, Manwaring, a former Goldman Sachs analyst and LifeLock executive, and senior partner John Kobierowski, show no signs of slowing the firm's expansion, backboned by over 350 investors committed to a diversified real estate investment trust (REIT). As the year edges towards its last quarter, the company eyes a pivotal decision—whether to sell Venture on Country Club at the three-year mark or retain it within their REIT for the long haul.
