EJF OpZone Fund I LP, a qualified opportunity zone fund sponsored by alternative investment manager EJF Capital LLC, and Chance Partners LLC have purchased a 284-unit multifamily housing community under development in the San Marco neighborhood of Jacksonville, Florida.
The project, known as San Marco Promenade, is located in a designated opportunity zone and is slated to be completed in the third quarter of 2020.
The federal opportunity zone program was created under the Tax Cuts and Jobs Act of 2017 and offers investors potentially significant tax benefits to invest in lower-income areas known as opportunity zones with the aim of spurring economic growth.
EJF and Chance Partners purchased the project from a majority owned joint venture of the Carlyle Group, one of the world’s largest investment firms. While Synovus Bank provided nearly $29 million of financing to the transaction, additional financial details regarding the transaction were not disclosed.
This is the second project EJF and Chance Partners have embarked upon in the San Marco neighborhood. Last year, the companies announced the development of a two-building, 486-unit multifamily housing community called San Marco Crossing in the historic neighborhood.
“This project will benefit the San Marco neighborhood in many ways, including adding much needed housing inventory for roughly 400 new residents,” said EJF co-chief executive officer Neal Wilson. “We believe the connectivity to Southbank and its nearby healthcare complexes will continue to make San Marco a hub of activity.”
Jacksonville-based Live Oak Contracting is the general contractor for the project.
Chance Partners LLC is a real estate firm specializing in the acquisition and development of infill, multifamily and mixed-use communities. Since 2010, the company has developed or acquired more than $300 million of assets, including multifamily, student housing, hospitality, retail in walkable locations throughout the Southeast.
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of December 31, 2019, EJF manages approximately $7.4 billion across a diverse group of alternative asset strategies.
As of April 15, 2020, the EJF OpZone Fund I LP had approximately $195 million in cumulative subscriptions and has closed on six investments, comprised of four multifamily projects, one industrial logistics park and one hotel project.