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Third Griffin Capital OZ Fund Closes After Raising Nearly $600 Million

Third Griffin Capital OZ Fund Closes After Raising Nearly $600 Million. Griffin Capital, qualified opportunity zone fund, equity raise, multifamily,

Griffin Capital Company LLC, a private real estate investment manager, announced the Griffin Capital Qualified Opportunity Zone Fund III LP has concluded its capital raise, having successfully raised approximately $586 million of investor equity. The fund has identified a portfolio of seven multifamily properties comprising 2,398 units and an estimated total project cost of $802 million.

In September 2020, Griffin Capital announced it had closed its first qualified opportunity zone fund, having raised approximately $460 million of equity.

In January 2022, Griffin Capital announced it had closed its second qualified opportunity zone fund, having raised approximately $585 million of equity.

Collectively, the three qualified opportunity zone funds have developed or are in the process of developing 27 multifamily communities representing approximately 9,500 residential units and $3.1 billion of development cost.

“We are humbled by the confidence our partners and investors place in our opportunity zone fund strategies. We believe the robust capital formation to date reflects a well-formulated investment strategy and our ability to execute our business plan of curating diversified portfolios of compelling multifamily development opportunities independent of the potential tax benefits afforded investors through the opportunity zone fund legislation,” said Kevin Shields, chairman and co-chief executive officer of Griffin Capital.

“Given the current dynamics in the multifamily market and our view of the long-term demand for rental housing in our target markets, we are as confident in our ability to execute our strategy today as we were when we formulated our first opportunity zone fund in 2019,” added Shields.

“We continue to be very constructive on the long-term performance of the multifamily sector due to strong secular-growth trends underpinning future demand for rental housing, the sector’s high historical correlation between rent growth and inflation and its cyclical resiliency. Our focus on identifying sustainable growth markets that will continue to need additional housing, and executing our development strategy by partnering with best-in-class institutional developers provides a unique access point for the investors we serve,” added Nick Rosenthal, co-chief executive officer of Griffin Capital.

“Our ability to deliver additional housing supply in high-demand markets, generating long-term job creation and additional economic stimulus to the communities in which we invest is the intersection of capital formation and impact investing. The opportunity zone fund investment strategy provides investors, with whom we invest alongside, the opportunity to constructively redeploy hard-earned capital in a structure that drives a meaningful and positive long-term economic impact with the potential to also yield a compelling investment outcome. As investment managers and investors, we are inspired to deliver to the market an investment strategy in which all stakeholders can potentially experience an outstanding outcome,” concluded Rosenthal.

Founded in 1995, Griffin Capital has owned, managed, sponsored, or co-sponsored investment programs encompassing more than $23 billion in assets. The company’s senior executives and employees have co-invested over $300 million in various investment verticals, aligning Griffin Capital’s interest with those of its investors.

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