Aegon Real Assets US, an affiliate of Aegon Asset Management – a global investment manager with $386 billion in assets under management/advisement, has closed on its first multifamily residential real estate development located within a designated opportunity zone.
The $60 million development, a joint venture between Aegon RA and a subsidiary of Kemper Corporation, is located in downtown Sacramento, California, one of 34 metro areas that Aegon RA’s analysis has deemed “an attractive opportunity zone market.”
This deal is the first development within the company’s opportunity zone investment strategy, which was launched in January 2019.
Aegon RA has more than 30 years of experience in financing, developing and managing multifamily residential assets within economically-distressed communities across the US by utilizing low-income housing tax credits.
The firm has acquired more than $4.8 billion of tax credit real estate private equity investments since 1987 and helped create more than 120,000 units of affordable housing in 50 states. Aegon RA manages 430 LIHTC partnerships and has funded $7.7 billion in multifamily loans since 2007.
“Aegon RA currently manages a $2.7 billion portfolio of multifamily assets located in OZs, which positions us as a uniquely qualified OZ sponsor,” said Philip McAndrews, head of real estate equity.
The 2017 Tax Cuts and Jobs Act created a new incentive to encourage investment in economically distressed areas, and there are more than 8,700 census tracts designated as opportunity zones. Such investments can defer, reduce and eliminate some of an investor’s capital gains tax liability.