Caliber, a sponsor of qualified opportunity funds, has purchased the lease rights for 100 acres of land to begin developing The Riverwalk Development project, located in the Salt River Pima Maricopa Indian Community.
The property is located alongside the 101 Freeway from Talking Stick Way on the south to Via de Ventura on the north in a qualified opportunity zone. The company says their current plans include splitting the almost 100 acres into seven parcels where mixed-use entertainment, retail, restaurants, hotels, event venues and immersive art attractions will be featured.
The land lease includes the underlying leases for the existing Hampton Inn and Topgolf entertainment venue.
“This is a terrific opportunity to develop a premier entertainment and multi-use destination in Scottsdale, working closely with the [Salt River Pima Maricopa Indian Community],” said Chris Loeffler, chief executive officer of Caliber. “Investing in opportunity zones enables us to create compelling community impact while also delivering attractive returns and tax savings for our investors.”
Approximately 78 acres of the project will be one of the first investments by Caliber’s Tax Advantaged Opportunity Zone Fund II LLC, 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 said this fund also seeks to provide equity for vertical development on this site, in partnership with developers or for Caliber sponsored developments.
“This area will become the epicenter of entertainment for all age groups in Scottsdale and one of the top visited areas in the state once this development is complete,” said Chris Camacho, president of the Greater Phoenix Economic Council.
Caliber is among the top 7% of qualified opportunity fund managers ranked by equity amounts raised, according to Novogradac Opportunity Zones Investment Report.
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 is a middle-market alternative asset manager and fund sponsor with approximately $2.2 billion in assets under management and assets under development. The company sponsors private funds and private syndications, and conducts substantially all business through CaliberCos Inc., an asset manager that provides investment formation and management, real estate development, construction management, acquisitions and sales.