$250 million equity fund to invest in a diversified portfolio of real estate properties & related equity investments in select opportunity zones in Southwest US
CaliberCos Inc., a fully integrated alternative asset manager and investment sponsor, today announced that it has launched Caliber Tax Advantaged Opportunity Zone Fund II, LLC (the “Fund”), a $250 million equity fund targeted to invest in a diversified portfolio of real estate properties and real estate-related equity investments in select opportunity zones located in high-growth markets across the Southwest U.S.
Caliber will seek to acquire assets for the Fund at a discount to perceive current market values through its proprietary acquisition platform. The Fund will pursue opportunistic real estate investment strategies, which include new development, new construction, adaptive re-use, and substantial renovations of existing assets or business operations. The Management team at Caliber sees a unique opportunity in the current market, where asset prices are expected to fall and capital constraints may offer attractive entry points into certain developments.
The Fund’s anticipated first investment is expected to be made into The Riverwalk Development, located in the Salt River Pima Maricopa Indian Community (SRPMIC), adjacent to Scottsdale, Ariz. This project offers exposure to a nearly 80-acre mixed-use commercial development in one of the most desirable locations in the state. Other projects under consideration for inclusion in the Fund include two multifamily developments in Mesa, Ariz., a mixed-use medical complex under development in SRPMIC, adjacent to Scottsdale, Ariz, and a series of Behavioral Health Hospitals, structured as build-to-suit investments, throughout the United States.
“In today’s uncertain environment, investors are increasingly looking for opportunities to reduce their tax liabilities and potentially interesting alternative long-term investment opportunities,” said Chris Loeffler, Chief Executive Officer of Caliber. “Our extensive experience as a commercial real estate developer coupled with the deep relationships we’ve built in established opportunity zone markets helps us to deliver on both needs. Our team has already identified a robust pipeline of attractive projects that was cultivated through the deployment of over $180 million in equity from our first qualified opportunity zone fund. We believe this new Fund offers a compelling combination of investment returns, tax savings, and community impact.”
Caliber was one of the first firms in the country to create a Qualified Opportunity Zone Fund (QOF) and, today, is among the top 7% of QOF managers ranked by equity amounts raised according to Novogradac Opportunity Zones Investment Report. QOFs offer investors the ability to reduce and eliminate short and long-term capital gains tax liabilities by investing in a professionally managed real estate fund and completing new developments that are impactful to the designated communities within each zone. Created in late 2017 as part of the Tax Cut and Jobs Act, these funds help stimulate economic growth in distressed communities across the country. Investors who hold the fund longer than 10 years will receive their capital gains from the growth of their QOF investment tax-free.
Caliber’s first QOF, the Caliber Tax Advantaged Opportunity Zone Fund, LP, was closed to new investments on June 30, 2022. It raised more than $184 million and invested in 16 properties and one business, all in Arizona and Texas. The first fund is now seeking to optimize cash flows on the projects it holds and find other existing QOFs across the country that may be seeking a merger into a larger fund for diversification purposes. Today, Caliber is believed to be one of the largest Opportunity Zone investors in the Southwest region.
If you’re interested in learning more about our CTAF II Fund, please connect with us at [email protected]
The Wealth Development Company – is a middle-market alternative asset manager and fund sponsor with over $600 million in assets under management and $2.2 billion in assets under development. The Company sponsors private funds and private syndications. It conducts substantially all business through CaliberCos Inc., a vertically integrated asset manager delivering services that include investment formation and management, real estate development, construction management, acquisitions and sales. Caliber delivers a full suite of alternative investments to an $11 trillion investor market that includes high-net-worth individuals, qualified investors, family offices, registered investment advisors, broker-dealers, and institutions. Caliber’s middle-market specialty allows the Company to compete with agility and speed in an evolving arena for alternative investments. Additional information can be found at Caliberco.com and CaliberFunds.co.
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The information contained herein is general in nature and is not intended, and should not be construed, as accounting, financial, investment, legal, or tax advice, or opinion, in each instance provided by Caliber or any of its affiliates, agents, or representatives. The reader is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances, desires, needs, and requires consideration of all applicable facts and circumstances. The reader understands and acknowledges that, prior to taking any action relating to this material, the reader (i) has been encouraged to rely upon the advice of the reader’s accounting, financial, investment, legal, and tax advisers with respect to the accounting, financial, investment, legal, tax, and other considerations relating to this material, (ii) is not relying upon Caliber or any of its affiliates, agents, employees, managers, members, or representatives for accounting, financial, investment, legal, tax, or business advice, and (iii) has sought independent accounting, financial, investment, legal, tax, and business advice relating to this material. Caliber, and each of its affiliates, agents, employees, managers, members, and representatives assumes no obligation to inform the reader of any change in the law or other factors that could affect the information contained herein.