Breneman Capital Acquires 29-Unit Apartment in Phoenix, AZ

Lofts on 3rd - Phoenix, AZ

PHOENIX, AZ – On July 20th, 2022, Breneman Capital (formerly Rise Invest) acquired the apartment community known as Lofts on 3rd located at 1401 N 3rd Street in Phoenix, AZ.

Lofts on 3rd was recently renovated in 2019 and consists of 14 1x1 units, 14 2x2, units (twelve of which are loft style), and one penthouse unit. The property is located just north of I-10, near the heart of downtown Phoenix. Just a 5-10 minute walk south is Roosevelt Row, which has blossomed into one of the Phoenix MSA’s best nightlife districts. Much like the rest of the Phoenix MSA, this particular area has received significant investment in housing in order to keep pace with demand and support the growing economy.

Lofts on 3rd has seen significant revitalization in recent years with 100% of the units have been renovated with modern finishes and in-unit washer/dryers—in addition to significant improvements to address amenities, deferred maintenance, and curb appeal. The property stands to benefit even further from enhanced property management and leasing.

The acquisition is a 1031 exchange of an asset that Breneman Capital sold recently in combination with additional 1031 funds from another Breneman Capital investor.

“This deal has everything you want at a time like this.” says Drew Breneman, 36, Breneman Capital Founder & CEO. “The going in cap rate is phenomenal, and we will be cash-flowing day 1 without needing to capture any loss-to-lease. We’re now up to 5 properties and 190 total units in the Phoenix MSA after having stepped into the market late last year and have come far in scaling our portfolio outside of Chicago and Minneapolis. We’re very excited about this asset and continuing to invest in Phoenix.”

“It is rare to acquire a stabilized asset in downtown Phoenix at such an attractive basis. With the help of our partners, we are confident that this will provide investors healthy cashflow while also being positioned in one of the most desirable areas in a rapidly growing market,” says Evan Dillon, 27, VP of Investments.

“So much of our time is spent surveying the market and identifying the most favorable investment opportunities, and we have a lot of conviction that our acquisition and strategy for Lofts on 3rd will be successful. We’re eager to continue building our reputation within the greater Phoenix market, and we think this deal is an excellent opportunity to showcase just that,” says Sam Markin, 26, Investment Associate.

“Special thanks to the Breneman Capital team including Sam Meyer, Evan Dillon, Sam Markin, Javi Mendez, and Tom Stein for their hard work to make this acquisition possible,” says Drew Breneman.

About Breneman Capital

Breneman Capital is a private real estate investment management firm specializing in the multifamily property sector. Breneman Capital employs a deliberate investment approach, leveraging data analytics and proprietary technology to generate superior risk-adjusted returns for investors.

About Drew Breneman

Drew began his real estate career at just 19 years old when he bought his first two rental properties.  At that early age, he learned real estate was the best method to generate cash flow and build wealth long-term when he was looking at how to invest his own money.  He has since dedicated his career to building an organization that makes investing in high-quality real estate opportunities available to passive investors.