How to Syndicate an Apartment Deal in Arizona: A Sponsor Guide
On this page
To syndicate an apartment deal in Arizona, you form the deal LLC (or register an outside LLC with the Arizona Corporation Commission), raise under Rule 506(b) or 506(c), and file a Form D notice with a $250 fee through NASAA's EFD, generally within 15 days of your first Arizona sale. Arizona then has a short 5 day nonpayment notice for tenants and a property tax system with a 5% yearly cap on taxable value.
This is the Arizona version of our general syndication guide. It covers what changes when the building, the investors or both are in Arizona. It is general information, not legal advice.
What is the Arizona Rule 506 notice filing?
Arizona treats Rule 506 interests as federal covered securities and wants a notice. You file the SEC Form D copy and the fee through the NASAA Electronic Filing Depository (EFD) for the Arizona Corporation Commission's Securities Division. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $250, with no separate late fee listed. The common state deadline is 15 calendar days after the first sale in the state. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings for the framework and blue sky fees by state for every state.
How do you form the deal LLC in Arizona?
Arizona LLCs are formed by filing Articles of Organization with the Arizona Corporation Commission, which also names a statutory agent; the published filing fee is $50. An LLC formed elsewhere that will own Arizona property files a Foreign Registration Statement, published at $150, with a certificate of good standing from its home state. Rules on publication, annual reports and fees have changed over the years, so read the Commission's current LLC filing guide before you file rather than relying on an old checklist. Choosing the state of formation is covered in forming an LLC for a syndication and foreign qualification in the property state.
What Arizona landlord and tenant rules should a sponsor know?
The Arizona Residential Landlord and Tenant Act (A.R.S. 33-1301 and following) governs most apartment leases. For nonpayment, a landlord gives a 5 day notice to pay or the tenancy ends (33-1368); for other material lease breaches, a 10 day notice to cure applies. A security deposit is capped at one and a half months' rent (33-1321) and must be returned, with an itemized list of deductions, within 14 business days after the tenancy ends. Arizona also bars local governments from adopting rent control (33-1329). Eviction cases move quickly in justice court, so the sponsor should make sure the manager knows each deadline. See rent control laws for apartment investors.
How does Arizona property tax work when an apartment building sells?
Arizona values property two ways. Full cash value follows the market, while limited property value, which sets the taxable base for most levies, can rise no more than 5% a year (Arizona Constitution, Article 9, Section 18). A sale does not reset limited property value by itself, but the assessor can use the sale as evidence of full cash value. A large gap between the two is common in a rising market, so ask for the parcel's current figures from the county assessor before you underwrite taxes. Appeals follow a county deadline after the valuation notice. See property tax reassessment in apartment underwriting and appealing property tax on an apartment building.
Does Arizona tax the deal LLC or its investors?
Arizona taxes income earned in the state, so a nonresident investor's share of the LLC's Arizona income may need an Arizona return, and a pass through entity may have to withhold for nonresident owners. Ask your CPA early. The investor side is in state tax returns for nonresident syndication investors.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), with verified accredited investors only. Investors fund by wire into escrow. By default DoorRaise files the property's state notice; on new deals, the first investor from another state pays that state's filing fee by card when they sign, and later investors from that state pay nothing. See pricing or how it works.
FAQ
How much is the Arizona Rule 506 notice fee?
$250, per NASAA's fee schedule. EFD shows the final amount before you pay.
When is the Arizona notice due?
Generally 15 calendar days after the first sale to an Arizona investor. One filing covers the offering.
How long is the Arizona nonpayment notice?
5 days under A.R.S. 33-1368.
Does a sale raise Arizona taxable value by more than 5%?
Limited property value rises no more than 5% a year, but a sale is evidence of full cash value, so confirm both figures with the county assessor.
Sources
- Arizona Corporation Commission: Securities Division
- NASAA: Form D fee schedule
- Arizona Corporation Commission: LLC filings
- Arizona Corporation Commission: LLC fee schedule
- Arizona Revised Statutes, Title 33, Chapter 10
- Arizona Department of Revenue: property tax
This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.