24-Unit Flagstaff Asset Joins NV REIT in Tax-Deferred Section 721 Transaction; Investors Realize Preferred Returns and Maintain Upside

(PRUnderground) October 22nd, 2025

Neighborhood Ventures (NV), a leading real estate operator and an online real estate investment company that enables both accredited and non-accredited investors to invest in multifamily properties, today announced the acquisition of Venture at Route 66, a fully renovated, 24-unit multifamily property located at 1914 E Mountain View Ave., Flagstaff, Arizona, via a Section 721 UPREIT exchange valued at $5.5 million.

The transaction marks the latest strategic addition to NV REIT’s growing portfolio of income-producing multifamily assets and brings the REIT’s holdings to four stabilized properties across Arizona.

Located just five minutes from downtown Flagstaff, Venture at Route 66 was acquired as a cash-flowing, fully occupied asset and contributes immediate income to NV REIT investors. The UPREIT structure enabled original project investors to realize their 12% preferred return while rolling their ownership into NV REIT partnership units thus deferring capital gains taxes and preserving upside exposure to future appreciation.

“This UPREIT exchange underscores the utility of creative, tax-efficient structures for owners and investors alike,” said Jamison Manwaring, Co-founder & CEO of Neighborhood Ventures. “Flagstaff’s supply constraints and strong renter demand make it a durable market. Adding Venture at Route 66 strengthens the REIT’s cash flow and diversification while giving our investors the benefit of tax-deferred growth and immediate monthly income.”

Key transaction highlights:

• Property: Venture at Route 66 — 24 units, fully renovated and fully occupied
• Structure: Section 721 UPREIT exchange; acquisition valued at $5.5M
• Investor Outcome: Original investors captured a 12% preferred return and converted holdings into NV REIT partnership units, deferring capital gains taxes.
• REIT Impact: NV REIT now holds four stabilized, income-producing multifamily assets across Arizona.
• Income & Upside: Asset immediately contributes cash flow; investors participate in 80% of property appreciation reflected in NV REIT net asset value (NAV). NV REIT currently distributes a 5% annual dividend (paid monthly), with potential upside as the portfolio grows.

“We designed NV REIT for 2 reasons. 1) To have an option to hold our best performing assets long term. 2) to offer liquidity and tax-efficient exits for our project investors while building a diversified, high-quality portfolio for long-term shareholders,” said John Kobierowski, Co-founder & President of Real Estate. “This transaction is a win on both counts. It preserves investor value, adds a high-quality Flagstaff property to our REIT, and reinforces our disciplined acquisition approach.”

As a real estate market, Flagstaff remains an attractive target for NV REIT given its rapid population growth and limited land for new development. The market’s supply constraints, strong employment base, and proximity to outdoor recreation support durable rental demand and long-term appreciation potential.

NV REIT is actively pursuing additional UPREIT and direct acquisitions across the Sunbelt and Mountain West, targeting stabilized, cash-flowing multifamily assets where disciplined capital and hands-on management can drive performance and shareholder value.

For more information on Venture on Route 66, visit neighborhood.ventures.

Prospective investors should bear in mind that past performance is no guarantee of future results and that there can be no assurance that projects will achieve projected results.

In addition, actual future conditions may require actions that differ from those contemplated at this time, and prospective investors are cautioned not to place undue reliance on these projections. This presentation includes certain non-GAAP financial measures. Certain statements such as “believes”, “anticipates”, “plans”, “intends”, “expects”, “target” “preferred” and words of similar import constitute forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

About Neighborhood Ventures

Neighborhood Ventures is an online real estate investment platform that offers both accredited and non-accredited investors across the nation the opportunity to invest in multifamily properties. The business revitalizes underperforming properties into stabilized, cash-flowing assets that create lasting positive impacts in their communities while delivering strong returns for investors.

Find the latest information on investment opportunities and progress updates on all projects at neighborhood.ventures.

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Original Press Release.