New Orleans Redevelopment Fund (NORF), a real estate developer and sponsor of private placement offerings, has launched the NORF 3 Opportunity Zone Fund with a capital raising goal of $30 million. The sponsor plans to commit 15 percent of the fund, up to $4.5 million.
The federal opportunity zone program was established as part of the Tax Cuts and Jobs Act and offers capital gains tax relief for new investments in certain economically distressed areas nationwide that are designated as qualified opportunity zones.
NORF has identified properties in New Orleans, Baton Rouge, Houston, San Antonio and is targeting additional areas of the Gulf South, with a focus on multifamily, mixed-use commercial, and hotel/hospitality projects.
Founded in 2013, NORF invests in distressed neighborhoods and specializes in the re-use of historic buildings and urban infill. The company sponsors two private equity real estate investment funds and claims to have redeveloped more than 250,000 square feet of blighted property valued at nearly $40 million, returned 191 residential units to commerce, and completed 40 historic tax credit projects.
The NORF 3 Opportunity Zone Fund, the company’s largest fund to date, is offered to accredited investors with capital gains in need of deferral.