Pinnacle Partners Closes First Multi-Asset Opportunity Zone Fund, Raising $90 Million
Real estate investment management firm Pinnacle Partners announced the closure of its 12th qualified opportunity zone fund, Pinnacle Partners Opportunity Zone Fund VIII, which launched in January 2022 and secured $90 million of its $200 million equity target, according to filings with the U.S. Securities and Exchange Commission.
The fund invested in four residential development projects: a market-rate multifamily community in Denver and another in Nashville, Tenn.; one build-to-rent single family home community in Avondale, Ariz.; and one build-to-rent townhome community in Charlotte, N.C.
“Though our 12th fund, this represents an entirely new chapter for Pinnacle Partners in this being our first multi-asset fund,” said Leo Backer, co-founder and managing partner at Pinnacle Partners. “We work on behalf of our investors to identify what we believe to be institutional-quality projects, sourced through exclusive relationships, that offer portfolio diversification in addition to substantial tax advantages.”
- In Denver, Pinnacle and joint venture partner Mortensen expect to complete the Revival on Platte in April 2025. The 200-unit, market-rate apartment complex within Denver’s Sun Valley neighborhood is adjacent to Denver’s Stadium District Master Plan.
- In Charlotte, a 68-unit, build-to-rent townhome project called Reve NoDa Junction with partner Trilogy Investment Co. is now approximately 75% leased.
- In Avondale, a suburb outside Phoenix, Pinnacle and development partner Trilogy Investment Co. expect to go vertical on a 107-unit build-to-rent single-family community in the first quarter of 2025.
- In Nashville, Pinnacle Partners and partner Stillwater Capital are planning a 300-unit apartment development adjacent to the new Tennessee Titans Stadium and Oracle world headquarters.
“We’re excited to close on the funding for these four projects that will deliver much needed housing solutions in growing markets around the country,” said Jeff Feinstein, co-founder and managing partner of Pinnacle Partners. “This successful fundraise is further evidence of the confidence our investors have in Pinnacle Partners.
Created through the Tax Cuts and Jobs Act of 2017, opportunity zone tax incentives spur economic growth and job creation in communities while providing investors with a series of tax incentives. Investors with capital gains from any source may reinvest their proceeds into a qualified opportunity zone fund, defer their tax liability until the end of 2026, enjoy tax-efficient cash flow by using depreciation (without recapture), and earn tax-free appreciation if the new investment is held for at least 10 years.
The company is working on its next qualified opportunity zone fund focused on build-to-rent opportunities in the Southeast, which has identified three shovel-ready development projects with Trilogy Investment Co. as co-general partners.
Pinnacle Partners and its subsidiaries have invested approximately $270 million of equity across 17 projects that consist of more than 2,400 multifamily units, and two historic adaptive re-use office buildings. The company raises capital through the family office, high-net worth, and registered investment adviser channels.
Click here to visit The DI Wire directory page.
