Origin Investments, a real estate private equity firm headquartered in Chicago, announced the final closing of Origin Qualified Opportunity Zone (QOZ) Fund I, with aggregate capital commitments of $265 million from more than 800 investors. Origin projects that the $265 million raised will equate to more than $1 billion of multifamily development projects it will own and manage.
Given the combined demand for qualified opportunity zone investments and the success of its QOZ Fund, Origin is finalizing plans to launch a second QOZ Fund later this year.
“There continues to be an incredible demand for investment funds focused on qualified opportunity zones,” says Michael Episcope, Co-CEO, Origin Investments. “At Origin, we remain hyper-focused to source opportunities across carefully selected target markets that meet our disciplined acquisition criteria and return requirements. Our investments stand on their own, based on the merit of the opportunity. The QOZ tax benefits represent an added benefit, not a rationale for investment.”
Origin’s QOZ Fund I is a diversified private real estate fund with a strategy to acquire sites within qualified opportunities zones for the purpose of developing new, or significantly expanding existing multifamily projects across the U.S. Like its other investment activities, Origin primarily targets 14 fast-growing metropolitan areas throughout the U.S.
To date, the QOZ Fund has committed approximately $100 million of equity in five different developments with an aggregated construction value of $375 million. The remaining capital is expected to be deployed into an additional 4-5 projects making the overall QOZ Fund I portfolio a total of 9 or 10 properties. Origin expects those commitments to be announced over the next six to nine months.
The five projects that currently comprise Origin’s QOZ Fund include:
· Union at Roosevelt—an existing 80-unit complex in Phoenix that is being expanded with the development and construction of Phase 2 which will include an additional 105 units. The completion date is projected to be in early 2022.
· Forth at Navigation—a 300-unit joint venture development with Marquette Properties in Houston. The project is currently in its lease-up phase.
· The Rosie—a 202 unit complex that is being developed in Chicago in a partnership with CEDARst. The project is currently in the lease-up phase.
· Trailside NoDa—a 330-unit transit-oriented development in Charlotte, NC. The project is expected to break ground in August and will be completed in mid-2023.
· Fiona—a 321-unit development in Colorado Springs (Pikes Peak), CO that is a joint venture with Greystar. The project is currently under development with completion set for mid-2023.
“The true constant across these investments is that we are partnering with preeminent development platforms, from regional developers with a strong presence in the individual markets, to some of the largest multifamily investment and development firms in the country,” adds Dave Welk, Managing Director of Acquisitions, Origin Investments. “The systematic construction of the Fund portfolio is being well-executed; the performance of the Fund will speak for itself.”