Muinzer, a vertically integrated real estate investment firm, has purchased four assets near Purdue University. The acquisitions include campus adjacent student-housing apartment buildings located at 414 Vine Street and 422 Vine Street in West Lafayette, Indiana for $2.6 million. The firm also purchased 400 Main Street, a former Salin Bank branch location, and 400 Ferry Street, an opportunity zone development site, both located in Lafayette, Indiana.
“These off-market acquisitions represent a natural expansion of our platform near Purdue University,” said Marc Muinzer, founder of Muinzer and its affiliate South Street Capital. “It demonstrates our ability to source high-quality property investments at favorable values in submarkets near global demand drivers. We are seeking to make additional purchases that expand our existing position as the largest apartment owner and land owner near Purdue.”
Muinzer and T2 Capital Management are preparing to launch a qualified opportunity zone fund in the second half of 2019. The fund will focus on ground-up developments and redevelopments near engineering, aerospace and technology-based education centers and regional innovation hubs. Muinzer and T2 have been joint venture partners on multiple projects on and around the Purdue campus since 2010.
Opportunity zones represent a provision of the Tax Cuts and Jobs Act of 2017. Investments in opportunity zones provide potential tax benefits including the deferral of current capital gains, tax deductions on current gains and no capital gains on appreciation if the investment is held for 10 years. Investors can use capital-gains proceeds from any asset class, not just real estate, to capture these potential benefits.
In the fourth quarter of 2018, Muinzer completed its first opportunity zone development site acquisition by purchasing 53 S. 2nd Street in Lafayette, Indiana.
Muinzer has offices in Chicago and West Lafayette and owns commercial and residential real estate throughout the Midwest.
T2 Capital Management is an opportunistic, privately held real estate investment firm based in Chicago that has invested $600+ million since its founding in 2011.