Real estate investment firm Pinnacle Partners has completed a $90 million commitment to its 12th Qualified Opportunity Zone Fund (QOF), already using its equity to fund four multifamily projects across four states. Commercial Observer reported that the company is investing in
Leo Bakker, co-founder and managing partner of Pinnacle Partners, said the fund was founded two-and-a-half years ago and raised primarily through high-net-worth individuals and wealth advisory channels.
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Bakker added that this is the first fund Pinnacle Partners has established to invest in more than just single-asset projects.
“Our first 10 projects were single-asset funds. Basically we have to take the money we raise and invest it in qualified opportunity funds, but we put it in Washington and California (into single-asset funds). 10 times,” Bakker told CO. “The fund has four assets. We chose to do a multi-asset fund outside of Washington and California because many investors were looking to diversify their portfolios.”
To achieve this goal, Pinnacle Partners has invested $90 million in four projects in North Carolina, Colorado, Arizona, and Tennessee.
The company plans to open Revival on Platte, a 200-unit market-rate apartment complex in Denver next April, and has acquired 75 percent of Reve Noda Junction, a 68-unit built-for-sale townhome community in Charlotte. It is planned to be rented. , in the coming months.
The new OZ Fund will help build a 107-unit built-for-sale community planned for the Phoenix suburb of Avondale and a 300-unit apartment building next to the $2.1 billion Tennessee Titans football stadium planned for downtown. It also plans to provide funding for development. Nashville.
Jeff Feinstein, co-founder and managing partner of Pinnacle Partners, said in a statement: “We are thrilled to close on the financing of these four projects that will provide much-needed housing solutions in growing markets across the country. I’m excited to be able to do it.”
All four residential projects associated with the company’s 12th QOF are expected to be fully funded within 30 days, Bakker said.
“When you increase capital in an Opportunity Zone, it’s not on a capital call basis,” Bakker explained. “Essentially, we raise money as people realize the benefits. So all the money we raise is typically funneled downstream into projects either immediately after we raise it or shortly thereafter. is.”
Brian Pascus can be reached at bpascus@commercialobserver.com.
