Virtua Partners, the Scottsdale-based private equity firm, has broken ground on 90-unit apartment complex located in a Tempe, Arizona opportunity zone.
Over the course of approximately 16 months, the unused infill lot at 1980 East Broadway Road will be developed into a multifamily complex that offers entry-level housing to the community, Virtua said. The project is being financed through equity invested by Virtua opportunity zone funds, as well as a construction loan placed by Virtua Credit Corporation.
The project is Virtua Partner’s first residential project to be partially funded through the opportunity zone program and will consist of 36 one-bedroom, 45 two-bedroom and nine three-bedroom units accompanied with parking and a fitness center.
Virtua Partners and its affiliates will oversee the construction and long-term management of the property.
“One of the most exciting aspects of this development is that it lives up to the social impact measures that the opportunity zone program was designed to promote,” says Quinn Palomino, CEO of Virtua Partners. “We’ve worked to ensure that a portion of the units designed are workforce housing and we’ve held detailed discussions with local and state officials to make sure this project meets the needs of the local community.”
As part of the groundbreaking ceremony held on the project site on June 12th, Virtua Partners hosted a roundtable policy discussion with local and state officials and addressed the need to establish a national reporting system to gauge the social impact of every opportunity zone development, the company said.
“We don’t just want to check the boxes and call it a success,” said Palomino. “The opportunity zone program offers investors and developers a chance to make a real difference in communities thanks to the associated tax benefits. “
She added, “While we work diligently to provide investors with compelling and attractive investment opportunities, we also make sure each project will substantially improve the local community we build in. Our opportunity zone projects are a testament to that commitment.”
Virtua Partners and its affiliates sponsor a variety of investment funds and commercial real estate projects across the United States and currently have more than 16 million square feet of assets under management or development.