CaliberCos Inc., a sponsor of non-traded alternative investments, has launched Caliber 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’s first fund, the Caliber Tax Advantaged Opportunity Zone Fund, LP, closed in June 2022 after raising more than $184 million in investor equity, 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 opportunity zone funds across the country that may be seeking a merger into a larger fund for diversification purposes.”
Caliber said that the new fund will seek to purchase assets at a discount to perceived current market values through its acquisition platform. These include opportunistic real estate investments, such as new development, new construction, adaptive re-use, and 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 company said in a statement.
The fund’s anticipated first investment is The Riverwalk Development, a nearly 80-acre mixed-use commercial development located in the Salt River Pima Maricopa Indian Community, bordering Scottsdale, Arizona. Other projects under consideration include two multifamily developments in Mesa, Arizona, a mixed-use medical complex under development in the Salt River Pima Maricopa Indian Community, and a series of Behavioral Health Hospitals, structured as build-to-suit investments, throughout the United States.
“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,” said Chris Loeffler, chief executive officer. “We believe this new fund offers a compelling combination of investment returns, tax savings, and community impact.”
The opportunity zone program was created in late 2017 as part of the Tax Cut and Jobs Act to stimulate investments in distressed communities nationwide by offering potentially significant tax benefits to investors, particularly those who hold their investments long term.
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.