Pinnacle Partners Launches $100 Million Opportunity Zone Investment Fund
Highly curated Opportunity Zone multifamily fund to focus on emerging markets
SEATTLE–(BUSINESS WIRE)–A subsidiary of leading Opportunity Zone investment firm Pinnacle Partners, in partnership with Opportunity Zone advisory firm Javelin 19 Real Estate, has launched Pinnacle Partners Opportunity Zone Fund VIII, a highly curated multifamily Opportunity Zone (OZ) fund investing in a minimum of four select real estate projects in Opportunity Zones in emerging U.S. markets, such as Denver, Bozeman, Mont., Nashville, Salt Lake City, Phoenix, Austin and Dallas. The Fund is targeting $100 million in investments.
Created with the Tax Cuts and Jobs Act of 2017, Opportunity Zone tax incentives spur economic growth and job creation in communities while providing investors with a series of tax incentives, including deferral of rollover of capital gains of any kind until 2026, a 10% discount on the capital gains tax due in 2026 if the investment is made by December 31, 2021, and elimination on post-investment gains if the investment in the fund is held for 10 years.
“We believe that Opportunity Zones stand as one of the most compelling tax legislations ever passed by the U.S. government and represent a once in a generation opportunity for investors seeking to manage their capital gains tax liability and potentially recognize the strong longer-term returns that can come from strategic multifamily property investments,” said Pinnacle Partners Managing Partner Jeff Feinstein. “Pinnacle Partners endeavors to identify institutional-quality real estate projects, sourced through exclusive relationships, that can offer our investors diversification and substantial tax advantages.”
“Our combined teams have focused on Opportunity Zone investing since the legislation passed,” said Javelin 19 Real Estate Managing Partner Jill Homan. “Based on that experience, we’ve been able to work directly with leading real estate developers working on promising projects in Opportunity Zones around the country.”
“We designed our approach to project selection to help investors realize returns while also enjoying the tax advantages of Opportunity Zone investing. We are very excited about the potential of the diversified group of properties that will ultimately be in the Pinnacle Partners Opportunity Zone Fund VIII,” said Pinnacle Partners Managing Partner Leo Backer.
About Pinnacle Partners
Pinnacle Partners has been an early mover and leader in Opportunity Zone real estate investing. The firm and its subsidiaries have invested more than $130 million in OZ equity across nine projects that consist of approximately 1300 multifamily units, and two historic adaptive re-use office buildings.
With more than 35 years of experience, Pinnacle Partners seeks best-in-class partners with track records of delivering and operating successful projects. To learn more about Pinnacle Partners, visit pinnacleoz.com and follow the company on LinkedIn.
About Javelin 19 Investments
Javelin 19 Investments is focused on making strong risk adjusted investments with best-in-class partners in Opportunity Zones and providing the highest quality Opportunity Zone advisory services to real estate investors, developers, and companies throughout the United States. The Managing Partner has over $500M of real estate development and investment experience.
Forward-Looking Statements
Some of the statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. The forward-looking statements are based on the Fund’s and Pinnacle Partners’ beliefs, assumptions and expectations, taking into account all information currently available to them. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Fund or Pinnacle Partners or are within their control. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, including (1) changes in political, economic or industry conditions; (2) the impact of increased competition; (3) the impact of legislative and regulatory actions and reforms, including OZ-related; (4) the performance of the Fund’s investments; and (5) Pinnacle Partners’s ability to attract and retain key employees.
The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks, you should refer to the risks applicable to the Fund as described in the Fund’s Confidential Private Placement Memorandum. The forward-looking statements included in this release are made only as of the date hereof. The Fund and Pinnacle Partners undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
Contacts
Elliot Golan
Allison+Partners, on behalf of Pinnacle Partners
818-571-0540
[email protected]
