1031 Exchange
Solo 401K, SD-IRA, QRP
506c for Accredited Investors
#1 Fastest growing county in the U.S., 6 years in a row!
This amazing sun-belt area has a fast growing economy, plentiful white collar jobs, high quality of life, and a competitive cost of living.
Sponsors are so confident they are investing $2M+
The sponsors love this metro and the project so much that they have increased their investment from $450K to over $2M.
Higher new construction returns WITHOUT all the risk
Phase II new construction is lower risk because the project is fully permitted and re-zoned, the loan is approved, and construction is already underway!
Projected Investor Returns (5 years)
2.3x
Equity Multiple
18.1%
IRR
25.7%
AAR
8%
PREF
Request the Online Investor Kit
Investor Presentation (PDF)
The live presentation replay
The Detailed Investment Summary
The FAQ Document
The independent Feasibility Study
1031 exchange into syndication how-to video
1031 exchange FAQ
Where should we send your Avondale Commons Investor Kit access information?
An accredited investor, in the context of a natural person, includes anyone who:
Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior 2 years and reasonably expects the same for the current year,
OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).
Inspirational image. Subject to change.
What We Love About This Project
Sign up for the investor presentation and discover even more things to love about Avondale Commons!
Where should we send your Avondale Commons Investor Kit access information?
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“I invested in Park Canyon with Grocapitus. Neal, Anna and team are both excellent at what they do and return better than predicted returns. For this particular project I received a 2.4 gross equity multiple return in less than 3 years. This way exceeded expectations.
What impresses me about Grocapitus is their quality research on every aspect of the market, their excellent communications and updates to investors, and their ability to add value to every property they touch.
I also appreciate their personal care about their investors and that they are accessible to discuss investments and concerns in a prompt manner. I highly recommend them for real estate investment.”
MARK C., Grocapitus Investor
Welcome to Avondale Commons
Avondale Commons is a modern, contemporary development in the city of Avondale, in the thriving West Valley region, near the heart of the Phoenix-metropolitan area. It is the perfect addition to an area with a pro-business environment boasting an accessible skilled workforce and an incredible quality of life. It has been designed to provide the most desired conveniences for up and coming families as well as urban dwellers looking for a less dense, more relaxed suburban setting, at a more affordable price than downtown Phoenix.
Every aspect of the project, from the selection of the high growth metro, to the use of our ultra powerful Efficiency Center, has been architected to maximize income and profits while providing a high quality living experience for tenants.
Our track record on similar projects with the same development and management team, along with the unusually high demand for housing in the metro has us very excited about the potential for a resounding success. With stunning local population and job growth, we expect to see very strong demand for our units, resulting in healthy projected returns for our investors.
Where should we send your Avondale Commons Investor Kit access information?
Inspirational image. Subject to change.
Inspirational image. Subject to change.
As a Limited Partner to invest in a syndication, for me, trust is a big factor. With Neal’s vast experience in multifamily construction, data-driven approach, and creative ways in solving problems as well as straightforwardness helped in creating the trust. I look forward to working with Neal on future opportunities.”
AVINASH P., Grocapitus Investor
A Phenomenal Metro For Growth!
Located in the 3rd fastest growing state, the greater Phoenix-Mesa-Scottsdale metro is on a tear with a sizzling hot economy.
#1 highest population growth (U.S. Census Bureau, 2021)
Population growth 3.6x faster than the national avg (2012 – 2022)
Job growth 6x faster than the national avg (2012 – 2022)
#1 year-over-year home price gains, +32.9% vs 19.8% nationwide
Strongest multifamily year on record in 2021 (Kidder Matthews Report)
Maricopa County (Phoenix-Mesa-Scottsdale) has achieved the #1 spot for population growth for a stunning 6 years in a row! The region is on strong footing and has benefited greatly from a resilient labor market and a positive migration. More people moved to Maricopa County (Phoenix-Mesa-Scottsdale) than any other county in the nation last year, according to U.S. Census Bureau. The County’s growth helped it maintain its rank as the fourth most populous county in the country with 4.485 million residents.
Phoenix has recovered ALL jobs lost during the pandemic, and has an unemployment rate of 2.7% (April 2022), which is 25% lower than the U.S. rate.
The severe housing shortage continues to put upward pressure on home prices and would require 250,000 new residences to be built to solve the problem.
According to Marcus & Millichap, since 2020, Phoenix leads the pack for rent growth, with rents up a huge 30.7%.
Where should we send your Avondale Commons Investor Kit access information?
“The Greater Phoenix region continues to grow in population and economic vitality. Stakeholders are dedicated to working in collaboration to further enhance a growing economy. Opportunities are boundless in the West Valley, as leaders remain vigilant in strategic planning focused on the long-term impacts.”
Chris Camacho
President and CEO, Greater Phoenix Economic Council
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The Avondale Commons Project
The project is located in the city of Avondale, the keystone business community in Metropolitan Phoenix’s flourishing West Valley. It’s proximity to strategic transportation corridors and access to a skilled STEM workforce has made it the city of choice for forward thinking investors and business owners.
Our location is only 1.7 miles from the Health Tech Corridor with 70,000+ healthcare and 18,000 technology jobs. Plus, across the street is the Phoenix Children’s Specialty & Urgent Care Center with a $33.5M medical office building expansion beginning soon.
Avondale Commons has an appealing, modern design and highly desirable outdoor and community features. Based on our local construction experience, the project has been value engineered to optimize costs and deliver a competitive product that will attract up and coming families along with skilled healthcare and tech workers.
324-unit Class A multifamily development
Construction scheduled for completion late 2024
Mix of 1, 2 and 3 bedroom floorplans with private balconies
Desirable community and clubhouse amenities
Garage and outdoor parking
Unique, personalized design touches and integrated "work from Home" flex spaces
Where should we send your Avondale Commons Investor Kit access information?
Development and Management Team
The success of any development project hinges on the strength of the development and management team, and how well they work together. This is the third project we are doing together.
Our Coyote Creek development project in St. George UT, is coming in on time, even though it faced pandemic related hurdles and potential delays. Not only that, but completed Coyote Creek units are leasing for $100/unit ABOVE projections, creating substantial additional equity for our investors in the project.
Our Falls at Crismon Commons project, in Mesa AZ, is now fully zoned and entitled with unanimous support from both the planning and zoning board as well as the City Council. Construction financing has been lined up and the appraisal came in significantly higher than the projected exit value, by about $5 million, which should help to meet or exceed projected investor returns.
In addition, this is the second time working together in this same metro, so we are able to leverage the same on-the-ground teams. For example, the lender from our first project in this metro loves the Avondale Commons project so much they are ready to close on the construction loan in August, strongly reducing the capital market risk, which is a big deal in this lending environment.
Where should we send your Avondale Commons Investor Kit access information?
Inspirational image. Subject to change.
Inspirational image. Subject to change.
“Rent growth throughout the metro has been strong in recent years while maintaining low vacancy. There are widespread employment opportunities within the area, with more on the way.
The subject’s units are anticipated to be highly desirable, and the proposed unit mix is anticipated to be attractive to the local demographic. The subject has good retail supportive services within just one to two miles.”
Independent Market Study Conclusion – Feb 2022
Newmark Knight Frank
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How We Increase Investor Returns
This project boasts multiple income differentiators. In addition to our vertically integrated development team, which allows us to control processes and improve efficiencies, Avondale Commons is a perfect fit for the use of our Efficiency Center (EC).
Our Efficiency Center is the ultra powerful secret sauce that boosts investor returns and also improves the life of tenants in our communities. The two main goals of the EC are simple and straightforward:
Fill the property to the max with high quality tenants in record time
Our EC center boasts powerful stats. We currently have a run rate of nearly 20,000 tenant leads a year and 4,500 tenant appointments a year.
By applying our world class efficiency center systems, processes and resources we are able to optimize net operating income (NOI) to a level that is revered in the industry, and generate returns that make our investors very happy.
The EC played a key role in the ongoing successful lease up of Coyote Creek, including building the pre-leasing website, and capturing and nurturing a strong early interest wait list. The strength of this list has allowed us to increase rents ~$100 over proforma, based on high demand.
Where should we send your Avondale Commons Investor Kit access information?
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Inflation Emerges as the Silent Wealth Killer
Inflation rose to a shocking 9.1%, at the fastest rate in over 30 years. And the Fed Governors have strongly indicated that they only care to getting inflation down to 2%. They have signaled they will raise the Fed Funds rate another .75 pts in Q1 2023, hold it there for a year with no drops, and then dop the rate by just one point in 2024, and one more point by the end of 2025. So we have a long time to go before they start decreasing interest rates.
Now here’s the good news for multifamily investors…according to Berkadia, apartments have the strongest risk-adjusted performance during both times of moderate (2-5 percent) and high inflation (5+ percent). When inflation spikes, rents spike. Inflation cannot be killed quickly, and will likely linger for years, likely leading to above trend rent growth during that time.
Plus investments backed by hard assets have the ability to retain value when inflation rises. Property and rental prices tend to increase with inflation, making multifamily investing an excellent strategy to hedge against inflation. Inflation is good for homeowners and landlords.
Where should we send your Avondale Commons Investor Kit access information?
Rate of Inflation
Renting vs Owning
Renting vs Owning
The rental payment vs mortgage payment dynamic is critical to making prudent real estate investment decisions. And TODAY, that dynamic is MASSIVELY in favor of landlords. In the previous chart you can see the gap between rents and home prices is the highest in history. Higher than 2005 and 2006.
Even though the green line, rents, show a spike in the last year, the spike in mortgage payments is sooooo much bigger. Higher prices and higher interest rates have made this one of the absolutely WORST times in history to buy a home, placing more demand on multifamily.
The monthly payment for a new purchase is more expensive than average apartment rent by a whopping 57%
#1 Widest gap on record!
Where should we send your Avondale Commons Investor Kit access information?
Their reporting is consistent, timely, and provides an honest portrayal of how the property is doing. The returns I have received on my investments have been very close to proforma projections, even in these very difficult pandemic times. I would definitely invest with Grocapitus again in the future.”
FARZANA P., Grocapitus Investor
Introducing the Development Team
NEAL BAWA
Grocapitus
CEO & Founder
ANNA MYERS
Grocapitus
COO
KEN HOLMAN
Overland Group
Development
MIKE HOLMAN
Overland Group
Development
DAVE HOLMAN
Overland Group
Development
How Grocapitus Selects Development Markets
Rent Growth
Sales Trends
Employment
Supply And Demand
“Neal and his team are awesome! I’ve invested in 4 projects with him and after 2 years we’ve already sold one. He’s outperformed other syndicates that I’ve invested with for much longer. I love getting his monthly updates. It’s rare to have a syndicator update us so regularly.
Grocapitus is a breath of fresh air. They do things differently and way better than their competitors. Thank you Neal for being an amazing leader to your team! I couldn’t be happier with the results so far. Looking forward to investing more in the future.”
SARAH L., Grocapitus Investor
Request the Online Investor Kit
Investor Presentation (PDF)
The live presentation replay
The Detailed Investment Summary
The FAQ Document
The independent Feasibility Study
1031 exchange into syndication how-to video
1031 exchange FAQ
Where should we send your Avondale Commons Investor Kit access information?
An accredited investor, in the context of a natural person, includes anyone who:
Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior 2 years and reasonably expects the same for the current year,
OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).
Phase 2 Projected Investor Returns (5 years)
2.3x
Equity Multiple
18.1%
IRR
25.7%
AAR
8%
PREF
