Rise48 Equity

I invested $50K through Turbine Capital into Rise at Suncrest (formerly La Serena Apartments), a 160-unit Class B+ multifamily value-add in Tempe, AZ. Rise48 Equity and McKenna Capital were the deal sponsors. The business plan was straightforward: acquire an off-market property from a mom-and-pop owner who'd held it for 22 years without pushing rents, do full interior "platinum level" renovations ($16,500/unit), and capture significant loss-to-lease. The deal terms were solid: $50M purchase price ($312,500/unit), $29.3M equity raise, target 15.1% IRR, 1.95x equity multiple, 5.3% average annual cash flow. The debt was a fixed-rate seller-carry loan at 4.40% with 5-year interest-only and no prepayment penalty. That financing alone made this deal stand out — in a market where floating rate debt was destroying multifamily sponsors, Rise locked in fixed-rate seller financing at 60% LTV with zero prepay. That's exceptional structuring. Rise48 is vertically integrated — they run Rise48 Communities as their in-house property management arm. After investing in Highland Park & Penn (which used third-party PM), I've come to deeply appreciate operators who control their own PM. When the same team that buys the asset also manages, renovates, and leases it, there's accountability at every level. Communication from Rise48 has been among the best I've experienced across my entire portfolio. Monthly updates with photos, financial reporting, and property-level detail. When things are going well, they tell you. When there are challenges, they tell you that too. They are very open. Now, the broader context: Rise48 has had a rough vintage. Several of their other deals got caught with adjustable-rate debt at the worst possible time, and some are underwater. I think they got caught off guard by the rate environment. But Suncrest — with its fixed-rate seller financing — has been one of the few Rise deals that's doing okay. Rise48's exited track record before this cycle was exceptional: a weighted average actual IRR of 70.5% and 2.11x equity multiple across 1,159 units and 11 exits, with an average hold of just 17.7 months versus a projected 60 months. Deals like Paseo 51 delivered a 124% IRR. The team knows how to execute when the market cooperates. Lesson for other LPs: Debt structure is everything. This deal survived because of fixed-rate seller financing. Other Rise deals in the same vintage with floating-rate bridge debt are struggling. When you're evaluating a multifamily deal, the single most important question after "who is the operator?" is "what does the debt look like?" Fixed vs. floating, LTV, IO period, rate cap cost, maturity date — these details will determine whether your deal survives a rate shock. I would continue investing with Rise48. They're good people, they communicate transparently, and I believe they've learned from this cycle. A few deals went bad, but the operator's integrity is intact.

Zach, Bikran and the Rise48 team have been great at finding deals and executing on their business plans. They put together solid prospectuses and if I have questions they hop on and dive into the details. I've done 8 deals with them over the last 4 years and I continue to utlize Rise48 for my residential real estate investing needs. I find their vertically integrated approach to sourcing, marketing, and rennovating be a great way to optimize returns. I find their investment classes to be satisfactory and better than what I can find elsewhere.

I've made at least 3 investments with them. They always communicate clearly, provide documents on time for year end taxes, make payments regularly and consistently, and a first rate operation. They have also diversified beyond their base in AZ to other high growth markets. Finally, they have also not made a capital call, while others have. Waiting for some liquidity to add to my portfolio with Rise48.

I have invested with Rise 48 for three years and invested in three separate deals, none have gone full cycle. In my mind Rise48 sets the standard on how to communicate with investors. I frequently use their investment packets, marketing material, updates, PPM's, etc. as standards when comparing other operators. More importantly, they have met (even slightly exceeded) all investment committed returns (so far). What is less publicized is the more you get to know Zach and his leadership team, the clearer it is to see the high morals and expectations set for the organization. I would recommend Rise specifically for any LP's new to syndication investing who might want a "safer" proven asset class, cash-on-cash returns more comparatively on the modest side and in a highly organized team who only focuses on one type of deal and never leaves their swim lane.