M31 Capital, a real estate investment firm, announced that its affiliate Morpheus General Partner LLC has launched its first opportunity zone fund, the Morpheus Qualified Opportunity Zone Fund 1, to invest in qualified opportunity zones located in the Greater San Francisco Bay area.
The fund plans to invest across a range of properties, including off-market multifamily housing, mixed-use properties, empty or neglected apartment buildings, unoccupied offices and vacant land located in opportunity zones designated by the Governor of California and the U.S. Department of the Treasury. The Greater San Francisco area is currently home to 80 opportunity zones.
“Qualified opportunity zone funds offer tremendous potential for investors who are seeking to realize the tax benefits of reinvesting their capital gains from other investments, while contributing to positive economic development in local communities that have been left behind,” said Taylor Lembi, CEO of M31 Capital. “Morpheus 1 will help address the severe residential housing shortage impacting the entire Bay Area by bringing more affordable living options for our city’s residents in underserved markets near job centers.”
M31 Capital said that it has managed more than $3 billion of real estate transactions across the San Francisco Bay Area since inception, and that the firm’s network of brokerage relationships will be made available to the fund through the general partner.
Opportunity zones were created by The Tax Cuts and Jobs Act of 2017 to provide investors with potentially significant tax advantages with the goal of stimulating economic development in certain underserved communities designated as qualified opportunity zones.
M31 Capital is comprised of five affiliated companies that provide a range of real estate services including property management, general contracting, utility management, property advisory, mortgage banking, automated rental marketing and tenant screening for landlords, leasing agents, and property management companies.