US: Pinnacle Partners and Trilogy Investment Company have launched a new Opportunity Zone Fund to capitalise three BTR communities.
The schemes are in Decatur, Georgia; Augusta, Georgia; and Huntsville, Alabama. With nearly 500 homes planned across these projects in Qualified Opportunity Zones, the fund aims to revitalise these communities with new housing while also intending to offer substantial tax incentives to investors.
“This tax-advantaged real estate fund is targeting strong risk-adjusted returns, fueled by long-term positive trends in these markets with an exciting in-demand asset class,” said Jeff Feinstein, managing partner at Pinnacle Partners. “In fact, the Fund’s launch is timely for investors looking for more tax-efficient strategies as they complete their year-end tax planning. We believe this is a great opportunity for investors who can manage the risk and liquidity.”
“The Pinnacle/Trilogy BTR OZ Fund is a groundbreaking initiative that will channel significant investments into underserved areas, foster community development and seek to offer attractive returns to investors,” added Jason Joseph, CEO and managing partner of TIC.
The Pinnacle/Trilogy BTR OZ Fund launch follows Pinnacle Partners’ successful closing of two BTR projects with Trilogy Investment Company through Pinnacle Partners OZ Fund VIII. This closing includes a townhome development in the NoDa submarket of Charlotte, North Carolina, and Avondale Station, a single-family home development in Avondale, Arizona.
“This growing relationship with Trilogy has allowed us to be their co-GP investment partner for their upcoming pipeline of BTR projects,” said Feinstein. “We collectively have such conviction of the BTR asset class; moving forward with three curated projects in a new Opportunity Zone fund is the perfect next step.”
The Pinnacle/Trilogy BTR OZ Fund is now open to “accredited investors seeking to take advantage of tax benefits of investing in Qualified Opportunity Zones while diversifying their investment portfolio”.
