UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1-U
CURRENT REPORT PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933
January 16, 2024
(Date of Report)
NV REIT LLC
(Exact name of registrant as specified in its charter)
| Delaware | | 88-4084839 |
(State or other jurisdiction of
incorporation or organization) | | (IRS Employer
Identification Number) |
5227 N. 7th Street
Phoenix, AZ | | 85104 |
| (Address of principal executive offices) | | (Zip Code) |
602-714-1555
Registrant’s telephone number, including area code
Class A Shares
(Title of each class of securities issued pursuant to Regulation A)
Item 9. Other Events
Change to Investment in Venture on 17th LLC
On August 24, 2023, the Company published Supplement No. 3 indicating that the Company had invested in Venture on 17th LLC, an Arizona limited liability company (the “Project Entity”). Since then, the nature of the Company’s investment in the Project Entity has changed from a limited liability company interest to a debt instrument with the following terms:
| 1) | The Company loaned a total of $546,000 to the Project Entity, representing the full amount invested in the Project Entity so far. |
| | | |
| 2) | The loan matures on the earlier of December 26, 2026, or upon the sale or dissolution of the real estate project owned by the Project Entity. |
| | | |
| 3) | The loan bears interest at 15% per year. |
| | | |
| 4) | Interest is payable monthly, with all principal and accrued interest due at maturity. |
Change to Investment Strategy
The Company has updated the section in the Offering Circular captioned “Investment Strategy” to provide as follows:
The Company intends to invest in the following types of multifamily projects:
| ● | Projects that are stabilized and produce positive cash flow – typically turn-key properties (“Type A Projects”); and |
| ● | Existing projects where we believe we can add significant value and ground-up projects – typically properties in need of development and construction (together, “Type B Projects”). |
The Company plans to invest approximately 80% of its capital in Type A Projects and 20% in Type B Projects.
All investments in Type B Projects will be made in the form of “mezzanine debt.” By that we mean loans with the following characteristics:
| ● | An interest rate of approximately 15% |
Mezzanine loans may also be made to Type A Projects. However, mezzanine loans will not make up more than 20% of our total assets.
We plan to acquire 10 - 15 Type A Projects and hold them for 10 years or more. We intend to acquire projects that will yield an annual cash-on-cash return of between 5% and 7% and appreciate in value by approximately 4% per year.
The Company’s overall strategy is:
| ● | Identify properties that are producing strong cashflow in the Company’s target markets; |
| ● | Purchase and maintain properties while increasing rents to match the market rates and optimize cash flow; and |
| ● | Participate in value-add and ground-up projects with strong projected internal rates of return. |
The Company might also purchase, build, or invest in other kinds of properties, beyond multifamily properties, so long as such properties are generating positive cash flow or can be made to generate positive cash flow once built and stabilized.
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on January 16, 2024.
| | NV REIT LLC |
| | | |
| | By: | Neighborhood Ventures, Inc., as Manager |
| | | |
| | By | /s/ Jamison Manwaring |
| | | Jamison Manwaring, Manager |
DATED: January 16, 2024
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