Grubb Properties, a commercial real estate firm and opportunity zone fund sponsor, has closed its 2021 Grubb Qualified Opportunity Fund LLC with $152 million raised. According to the company, the fund raised $63 million from investors in December alone.
This brings the total raised across the three funds in its qualified opportunity fund series to $370 million. Grubb plans to consolidate its 2019, 2020 and 2021 qualified opportunity funds into a private real estate investment trust, dubbed the Link Apartments Opportunity Zone REIT.
The REIT was approved by shareholders in late 2021 and is expected to launch in the first quarter of 2022.
The firm’s primary strategy is to provide essential housing through its Link Apartments brand, which are geared to those earning between 60 percent and 140 percent of area median income. There are currently 19 communities stabilized or under construction across the country, totaling 4,935 multifamily units, with 16 additional communities in the pipeline.
“Providing essential housing through Link Apartments directly addresses the serious housing shortage facing the country today,” said Clark Spencer, managing director of investments, and manager of the qualified opportunity fund series. “We believe Link Apartments achieves the goals of the opportunity zone legislation, improving communities without introducing excessive gentrification impacts, while providing a compelling investment opportunity.”
The REIT will launch with the 15 communities previously owned by the three qualified opportunity funds, including the recently announced Link Apartments developments in Los Angeles and Oakland, California and Queens and Hempstead, New York.
Grubb Properties, founded in 1963, is a real estate fund manager focused on the essential housing space through its Link Apartments brand.