Alpha Capital Partners, a Pittsburgh-based real estate investment and development firm, announced that its opportunity zone fund has purchased a parcel of land to develop a 300-unit multifamily community in Nashville, Tennessee.
As previously reported, Alpha Opportunity Zone Fund I has a target raise of $250 million and disclosed capital commitments of $95 million when the fund launched in October 2018.
The site is located at 1501 Herman Street in downtown Nashville, within walking distance of Amazon’s Nashville Yards expansion that is creating 5,000 new jobs in the area. The project is located within the Marathon Village, a retail entertainment destination housing about 40 creative office tenants.
“We are excited to have acquired the first project in our opportunity zone fund,” said Thomas McGahan, managing director of investments for Alpha Capital. “The location of this project is a significant win given its proximity to affluent residential neighborhoods and modern retail concepts. We believe having connectivity to these areas will be highly beneficial in generating stable cash flow and a great valuation at exit.”
The opportunity zone tax incentive program was passed in December of 2017 as part of the Tax Cuts and Jobs Act. The program encourages investment in low income communities designated as qualified opportunity zones by allowing investors to defer recognition of taxes on their recently realized capital gains. Capital gains from stocks, bonds, real estate or other assets can be invested into qualified opportunity zone funds.
Alpha Capital Partners develops, acquires, and manage student-housing and multifamily communities in secondary and tertiary markets. The firm currently owns 30+ properties across the United States.