SkyBridge Capital, an alternative investment firm co-founded by Anthony Scaramucci, and EJF Capital, a hedge fund and private equity fund manager, have launched SkyBridge-EJF Opportunity Zone REIT. The REIT has a mandate to invest in U.S. Treasury-certified opportunity zones, which are low-income communities where recycled capital gains can receive favorable tax treatment.
The offering is structured as a private, non-traded REIT available to accredited investors at a minimum investment of $100,000 with 1099 tax reporting and quarterly distributions. SOZ REIT is expected to be diversified by geography, property type, and developer, focusing on both new development and redevelopment real estate projects. It began accepting investments from accredited investors as of December 1, 2018.
“We launched the SkyBridge-EJF Opportunity Zone REIT in response to demand from investors, who correctly see the OZ program as a chance to potentially generate attractive returns while having a positive societal impact,” said Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital. “We worked with EJF to structure the product in an investor-friendly way to democratize access to this historic incentive.”
Opportunity Zones were passed into law with bipartisan support as part of the Tax Cuts and Jobs Act of 2017. The program was established to stimulate economic development in distressed communities across the country by offering potentially significant tax benefits to investors that make long-term investments in qualified opportunity zones.
To be eligible for the program, census tracts must have a 20 percent poverty rate or median family income of less than 80 percent of the surrounding area. Governors then chose 25 percent of eligible tracts in their state to be certified by the Treasury Department as Opportunity Zones.
“Our team’s expertise in real estate and related investments, along with our relationships with regional and community banks, gives us an edge in sourcing and developing investment opportunities across multifamily, industrial, and hospitality,” said Neal Wilson, co-founder and COO of EJF Capital. “We partnered with SkyBridge on opportunity zones because they understand the needs of mass affluent investors.”
SkyBridge Capital is a global alternative investment firm with $9.6 billion in assets under management or advisement. The firm manages multi-strategy funds of hedge funds and customized separate account portfolios, and provides hedge fund advisory services.