Origin Amasses $105M for Opportunity Zone Fund
Private equity real estate firm Origin Investments launched a Qualified Opportunity Zone (QOZ) fund before Thanksgiving, and amassed $105 million in commitments from 425 investors in 17 hours. In contrast to firms raising blind capital for QOZ funds, Chicago-based Origin has three multifamily opportunity zone projects under contract—one in Denver and two in Charlotte.
QOZs were established in 2017’s Tax Cuts and Jobs Act to incentivize long-term investment in economically distressed areas via favorable tax treatment. However, said Origin’s Michael Episcope, “the QOZ tax benefit doesn’t change the fundamentals of sound real estate investing. These projects need to pass the same scrutiny as developments in non-QOZ areas, and be able to produce viable, risk-adjusted returns.”
Episcope added that finding qualified investments that can provide a solid return is another challenge. “Even though the U.S. has over 8,700 QOZs, 90% of them aren’t ready for redevelopment capital today,” he said.
Pictured: Origin Investments headquarters
For comments, questions or concerns, please contact Paul Bubny