The SmartCap Group, a real estate investment firm founded by former Microsoft executives Tim Shoultz and Joe Ollis, has launched the SmartCap Opportunity Zone Fund LLC, a $15 million Reg D fund that plans to invest in qualified opportunity zones.
The Tax Cuts and Jobs Act of 2017 established the opportunity zone program to stimulate economic development in distressed communities across the country by offering potentially significant tax benefits to investors that make long-term investments in qualified opportunity zones. There are currently more than 8,700 designated opportunity zones in the U.S. and its territories.
According to a report by Geekwire, the SmartCap Opportunity Zone Fund’s first project will be a 12.5-acre industrial development north of Seattle in Arlington, Washington. Shoultz told the publication that SmartCap plans to raise $10 to $10.5 million for the project, most of which has already been committed.
According to a filing with the Securities and Exchange Commission dated December 31, 2018, the fund has a minimum investment of $25,000 and has raised $1.1 million in investor equity.
The Smartcap Group manages more than 450,000 square feet of commercial real estate investments with a primary focus on value-add office, warehouse and retail properties located in Washington and Colorado.