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Griffin Capital Closes Second Qualified Opportunity Zone Fund

Griffin Capital Company LLC, a privately-held alternative asset manager, reported that the Griffin Capital Qualified Opportunity Zone Fund II L.P. closed in the fourth quarter of 2021.

Griffin Capital Company LLC, a privately-held alternative asset manager, reported that the Griffin Capital Qualified Opportunity Zone Fund II L.P. closed in the fourth quarter of 2021 after raising more than $585 million of investor equity.

On behalf of the fund, Griffin Capital executed joint venture agreements with seven multifamily developers to construct 12 multifamily communities in 11 qualified opportunity zones, consisting of more than 4,000 residential units with a total development cost of more than $1.2 billion.

In September 2020, Griffin Capital closed its first opportunity zone fund after raising approximately $460 million of equity. Collectively, the two funds, in concert with their 10 joint venture development partners, will develop 21 multifamily communities across the United States representing more than 7,300 residential units and approximately $2.2 billion of development cost.

The company noted that, in 2021, it was recognized by Novogradac & Company as a leading investment manager in the qualified opportunity zone space by ranking in the top 1 percent of capital raised for such investments.

“We believe the robust capital formation to date is a positive reaction to a well-formulated investment strategy and our curated identification of compelling investment opportunities – independent of the potential tax benefits accorded investors via the [qualified opportunity zone] legislation,” said Kevin Shields, chairman and chief executive officer of Griffin Capital. “Given the current dynamics in the multifamily market and our view of the long-term demand for rental housing in our target markets, we are as confident in our ability to execute our strategy today as we were when we formulated our first [qualified opportunity zone] fund in 2019.”

Eric Kaplan, president of Griffin Capital Private Equity, explained that the company continues to be “very constructive” on the long-term performance of the multifamily sector “due to strong secular-growth trends underpinning future demand for rental housing, the sector’s high historical correlation between rental rate growth and inflation and its cyclical resiliency, as exhibited through the COVID-19 pandemic and previous economic cycles…”

Griffin Capital is an alternative investment asset manager headquartered in El Segundo, California. Founded in 1995, the firm has owned, managed, sponsored or co-sponsored investment programs encompassing approximately $20 billion in assets.

The company’s alternative investments include three groups of products: non-traded real estate investment trusts (REITs), interval funds in the company’s Institutional Access fund family, and tax advantaged strategies, including Delaware statutory trusts and opportunity zone funds.

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