Hope your week is going well! In this edition of Ascent Insights, you’ll find a market update, read about our first exit, and much more!

State of the Market Update

Renting is on the rise once again! According to Globe St, multifamily demand continues to grow. “In May, the average length of time that a rental unit sat empty fell to 26 days, the shortest duration since August 2022, according to a Marcus & Millichap report. It also noted that new lease applications per unit increased in the last two months, and the velocity of lease renewals per unit also grew.”

Company Updates

We’re thrilled to announce our first exit! After just 20 months (originally planned as a 5-year hold), Pearland has been sold! We will be getting an 18% IRR and approximately a 1.32x equity multiple. I’d take those returns any day, but they are especially exciting considering the current market. Remember that if you want to defer taxes, you can roll your returns over to our current deal.

We extend our gratitude to all of you for joining us on this journey. Your support and trust have been instrumental in our success!

Deal Update

Our current, active deal for Cabana Encanto is already filled! Just 19 spots left! Because this will likely be our only deal in 2023, and since there are so few great deals in the market as a whole right now, we are adjusting our tiers for Encanto! 

But wait… there’s more! Because there is so much economic volatility, we went back to the seller and asked for a larger discount. We want the deal to be as low risk as possible for our investors, and one of the biggest determinants of that outside the debt is the purchase price. After some tough negotiations, we were granted an additional $2.5 million discount, which will raise your returns by about 1%! 

What we’re up to!

Pranay recently joined Dr. Bradley Block on the Physician’s Guide to Doctoring podcast where they discuss Ascent’s latest investment opportunity, Cabana Encanto. In this episode, they discuss the reasons behind choosing Arizona, specifically Goodyear, population, and job growth in the area, and how it aligns with Ascent’s investment strategy. Click here to listen and find out why Dr. Block and so many other physicians have decided to invest in this deal.

Education Corner: Ascent was born from a place of education, so we want to continue that practice by sharing helpful, relevant tidbits of knowledge in each newsletter.

Did you know?

When people talk about ‘Class A, B, or C’ properties, they’re referring to the general quality and location of a building. Class A is top-tier, think prime location and high-quality construction. Class B is a bit older but still good quality, and Class C is typically older with more potential maintenance issues.

Have a friend or family member interested in passive real estate? Send them this quick quiz to see if it makes sense for their portfolio!

Team Highlight:

• We’re proud of our small and mighty team!
• This week we’re featuring TWO of our founders because they both just returned from epic trips with their families.
• Mith and his family had a fantastic trip to Mexico and Costa Rica. Despite the fact that they all caught the flu!!
• Peter and his family just got back from exploring South Korea and Japan for the past few weeks!
• Which vacation would you choose? Hard to pick! Except for the flu part, that’s a hard pass.

Thank you!

Let us know if there is anything specific you want to hear about in our newsletters, any educational components, or particular information, we’re happy to oblige! Simply message us and let us know.

We’re honored to bring incredible deals to our amazing investors and wouldn’t be able to do this without you.