Opportunity Zone Magazine is pleased to announce the Top 25 Opportunity Zone Fund Managers/Developers. The distinguished winners are active in the Opportunity Zone industry.
Frank Austin
Propel Opportunity Fund
With over 20 years of experience in real estate, finance and construction, Frank Austin is committed to providing consistent, strong returns to investors while empowering undeserved communities through strategic development that contributes to neighborhood revitalization and job creation. He has invested countless hours in community development and outreach programs, including developing neighborhood revitalization strategies, and creating and presenting workshops to help residents better their communities and lives. In 2015, Austin received the iconic “Iron Eyes Cody Award” presented by Keep America Beautiful. He was also awarded the Jacqueline Kennedy Onassis National Nobel Prize Award for Outstanding Public Service Benefiting Local Communities, and the Presidential Lifetime Service Volunteer Achievement Award.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
In 2022, the investment strategy of investing into a self-directed captive fund where investors have their own capital gain and projects will continue in an upward trend. We will see a notable rise in the trend for investment into agriculture projects located in rural areas and farming communities. Given the robust demand for investment in the mining industry, which includes the production of minerals, it is expected to gain the interests of investors. Although investing in mining can be highly volatile, they often make good long-term investments with high returns. A continuation of the new trends with crypto will carry over into 2022.
Craig Bernstein
OPZ Capital
Craig Bernstein is a principal of OPZ Capital, a Washington, D.C.-based advisory management firm that provides consulting services to family offices and ultra-high-net-worth investors. Recognized as one of the nation’s leading Opportunity Zone Fund managers, Bernstein has previously spoken at the Global Institutional Real Estate Forum, National Council of Real Estate Investment Fiduciaries and NYU Stern School of Business. With over 20 years of real estate experience, he recently co-developed a mixed-use Opportunity Zone project in Charlottesville, Virginia. Prior to founding OPZ Capital, Bernstein was the chief investment officer and director of real estate for a single-family investment office.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
2021 ended on a high note with the S&P 500 closing near record highs and global private equity transactional volume exceeded $2 trillion for the first time in history. As we enter the new year, we expect investors to continue to have an insatiable appetite for Opportunity Zone Fund investments. Working on behalf of high-net-worth investors, we are constantly looking to identify unique investment strategies that are capable of delivering compelling risk-adjusted returns. As an example, one such Opportunity Zone Fund investment strategy that we are particularly excited about for 2022 is the conversion of distressed hotels into rental apartments.
Alex Bhathal
RevOZ Capital
Alex Bhathal is co-founder and managing partner of RevOZ Capital, a leader and early adopter in Opportunity Zone real estate investing. In 2019, Globe St. honored RevOZ as the inaugural “Opportunity Zone Investor of the Year.” Bhathal is also co-owner and executive director of Sacramento Basketball Holdings, which owns the Sacramento Kings, Golden 1 Center and Downtown Commons entertainment and sports district; senior operating partner of Rx3 Growth Partners, a consumer growth fund; and a board member for Mark IV Capital, Aspyr Holdings and the California Coast Chapter of YPO. Bhathal earned his bachelor’s degree from UCLA, MBA from USC, and is completing the Presidents Program in Leadership at Harvard Business School.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Now that the OZ marketplace has grown and stabilized, we expect to see a greater variety of investment made in 2022. To date, multifamily development in major cities has seen the most investment. Going forward, we expect to see increased activity in other asset types like hotels, office and retail, along with more diverse geographies. Outside of real estate, we expect to see OZ investment in operating businesses accelerate.
Garett Bjorkman
CIM Group
Garett Bjorkman is a managing director in the Portfolio Oversight Group. He leads Portfolio Oversight for CIM’s private real estate debt and Opportunity Zone investment strategies. Prior to joining CIM, Bjorkman worked at various real estate private equity firms, holding positions in investments, capital markets and investor relations. Bjorkman earned a bachelor’s degree in business administration with concentrations in real estate and international business from Denver University.
David Coelho
Bridge Investment Group
David D. Coelho serves as a partner and the chief investment officer of the Bridge Opportunity Zones strategy. Coelho is a member of Bridge’s Executive Administration Group and the Investment Committee of the General Partner. He has over 20 years of experience in real estate and finance. He has completed over $10.0 billion of investment transactions and has advised on over $20 billion of public and private market mergers and capital markets transactions. Coelho joined Bridge from NorthStar Asset Management Group where he was a managing director focused on equity investments. Coelho received his bachelor’s degree in accounting from Syracuse University and his MBA from the Wharton School of the University of Pennsylvania with a concentration in finance.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
In 2022, I expect to see a continuation of strong investment in multifamily properties in Qualified Opportunity Zones. The program has served as an incredible catalyst for the creation of housing in under-invested communities and I believe that we will see more of that in 2022. Another trend that I anticipate is an enhanced focus on workspaces in multifamily properties as companies and industries embrace a long-term hybrid work strategy for employees.
Louis Dubin
Redbrick LMD
Louis Dubin is a managing partner of Redbrick LMD. Dubin has invested over $1 billion of equity in U.S. based real estate investments and acquisitions with a gross value of approximately $3 billion. He has completed over 30 real estate developments and investments. He is a past winner of Institutional Investor’s Real Estate Deal of the Year. Since 2003, Dubin has been a member of the NY State Common Retirement Fund Real Estate Committee. He is currently Chairman of the Governor’s Workforce Board of the state of Maryland. He is an active board member of the Patton Veteran’s Project and on the committee for the Steers Center for Real Estate at Georgetown University.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
I believe we will see many QOFs stick to large single-asset class funds in 2022. While some investors lean toward diversification, many are comfortable with a particular asset class or look for a developer with expertise in one particular category. And with us all still learning how the pandemic will affect long-term trends in how people live, work and shop, many investors are exercising caution on mixed assets. With that said, I expect that most developers will remain hesitant on building new office spaces, unless they are able to pre-lease and build to a client’s specifications.
Jill Homan
Javelin 19
Jill Homan is the president of Javelin 19 Investments, an Opportunity Zone focused real estate investment and advisory firm, and managing director of Pinnacle Partners, a multifamily focused Opportunity Zone fund. She has more than 15 years of experience in real estate development, totaling almost $500 million in capitalization. Homan has partnered with Pinnacle Partners on a $100 million highly curated Opportunity Zone fund. In addition, she is co-developing projects in Opportunity Zones and has successfully raised and closed OZ capital. She earned MBA and MPP degrees from Duke University, focusing on finance and authoring a thesis on urban revitalization.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
I think Qualified Opportunity Funds will sharpen our focus even more on high-quality investment opportunities for 2022. With the uncertainty around factors such as inflation, it is even more critical for QOFs to be highly selective of development partners, markets, and assets. The question could be “What do QOFs want to own if there is a downturn,” instead. While I am focused on creating value and growing value for our investors and partners, I also think we should be mindful of the economic and market factors and manage our risk appropriately.
Chris Knoppe
Cbus OZ Funds
Chris Knoppe is president of Cbus OZ Funds in Columbus, Ohio, where he invests to improve local urban neighborhoods in a dramatic and meaningful way through concentrated renovation of distressed housing and mixed-use properties. Investing professionally since 2007, Knoppe has successfully navigated market cycles while executing strategies including distressed property acquisition and repositioning, hard money lending, home building, and fund management. He became enamored by the power of Opportunity Zones shortly after the program’s formation, inspiring him to create a fund structure to amass a portfolio of houses, multifamily, and mixed-use properties while harnessing the power of the OZ incentives.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Real estate will continue to be a key investment segment including housing and industrial, however, I think we’ll see real estate investment expand into broader geographies and project types. As awareness of the OZ incentives grow, my hope is that more focus is given to hyper-local investment. Similarly, I think crowd-funding strategies will grow to allow broader investor participation.
Brandon Lacoff
Belpointe OZ
Brandon Lacoff is the founder, chairman of the board of directors and chief executive officer of Belpointe PREP, LLC, the first and only publicly traded Qualified Opportunity Zone structure on a national securities exchange. Lacoff is also the chief executive officer of Belpointe, a $4 billion multi-asset investment firm based in Greenwich, Connecticut. Lacoff began his finance/accounting/tax career at Arthur Andersen, LLP, then with Ernst & Young, LLP, in their mergers and acquisitions departments. Lacoff holds a Juris Doctor degree and an MBA from Hofstra University and a bachelor’s degree in finance from Syracuse University. He currently serves on the board of two non-profit organizations, The Belpointe Foundation and the Eagle Hill School.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
We believe that 2022 will be the year that Qualified Opportunity Zone Funds will take advantage of Belpointe PREP, LLC’s unique public real estate partnership structure that provides other QOFs with the ability to exit without creating an inclusion event for their investors. This will simultaneously provide an opportunity for QOF sponsors to receive their profits 8 to 10 years earlier than expected, without destroying their investors’ OZ tax benefits, and while providing them with recognized gains from the acquisition of their underlying QOF investments and all the advantages of Belpointe PREP, LLC’s unique public Opportunity Zone structure (greater diversification, NYSE liquidity, lower fees, investor controlled exits, public company reporting and up to a 20% tax deduction benefit.)
Chris Loeffler
Caliber
Chris Loeffler is the CEO and co-founder of Caliber and serves as chairman of the company’s board of directors. As CEO, Loeffler directs and executes global strategy, oversees investments and fund management, and contributes to private and public capital formation. Prior to forming Caliber, he served as a senior associate in the audit and assurance practice for PwC in Phoenix, Arizona. Some of his clients included Honeywell International, Inc., CSK Auto Inc., Verizon Communications, Inc., Republic Services, Inc., Car Wash Partners, Inc., and the Arizona Diamondbacks. Loeffler earned a bachelor’s degree in business administration with a concentration in accounting from California Polytechnic State University, San Luis Obispo.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
QOZ Funds and investors will focus on executing a strategy that maximizes the most valuable tax benefit of the program – an elimination of taxes on the value growth of a QOZ investment after a 10-year hold. Notwithstanding any action from Congress to extend program deadlines, this benefit will be the most important driver for an investor to decide to lock funds up for 10+ years in a limited geographic area. To meet this goal, QOZ fund managers will focus on the most impactful projects we can execute on in an effort to both maximize the financial return for our investors and to make the case to Congress and the American people that this program deserves an extension.
Michael McMahon
RXR Realty
Michael McMahon serves as EVP, tax director for RXR Realty, a position he has held for nearly 25 years. He is a NYS licensed CPA, with an MBA in taxation. As a member of the Real Estate Roundtable’s Opportunity Zone Working Group, he provided written comments and had in-person meetings with Treasury regarding the program, with many of the group’s comments incorporated into the final regulations. In his role as tax director, McMahon handles tax and investor relation matters for RXR’s first QOZ Fund, which in 2019 raised nearly $500M of equity, all of which has been successfully invested into several transformative projects throughout the New York tri-state area.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
To date, many QOFs have naturally focused on multifamily development in primary and top-tier secondary markets. Once that “low-hanging fruit” is gone, I think you’ll see more development in the remaining secondary and tertiary markets. I also believe that many people are trying to figure out ways to get around the NNN restrictions in Opportunity Zones, so I think you’ll begin to see industrial and other traditional NNN users go to a modified gross form of lease when leasing space in Opportunity Zones.
Leonard O. Mills
Verte Opportunity Fund
The Verte OZ Funds are managed by Dr. Leonard Mills, who has over 30 years of experience in asset selection and portfolio management. He earned a B.S. in mathematics, a Ph.D. in economics and is a Chartered Financial Analyst (CFA). Mills spent over 15 years as Head of Portfolio Analytics and Research for Fannie Mae’s direct portfolio. Later, he was a principal at Unison Investment Management. He founded his own investment advisory firm in 2016 specializing in venture capital investing and fund management. His first fund, Verte Capital, focused on the cannabis industry and related technologies. The second fund is the Verte Opportunity Fund, which opened in 2020, uniquely combining venture capital, sustainable investing and Opportunity Zone benefits.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
2022 will be another year of growth and expansion in the Opportunity Zone activity. The investor base will continue to broaden with smaller investors being willing and able to add OZ investments to their portfolios; more public offerings of QOFs will be seen. As seen in 2021, the growth rate of QOFs investing in OZ businesses will out-pace the growth rate of OZ real estate investing. I also see the range of OZ businesses continuing to expand by stage of development and across more industries.
Martin Muoto
SoLa Impact
Martin Muoto is the CEO and managing partner of SoLa Impact, a family of real-estate funds with a double bottom line strategy focused on preserving, rehabbing, and building high-quality affordable housing in Black and brown communities. Muoto’s early vision and his leadership among real-estate funds achieving market returns while delivering true social impact have led to him being featured in various leading publications. Muoto was previously an operating executive at several technology companies and a venture capital partner at Accretive Partners and General Atlantic Partners in New York. He graduated with honors from the Wharton School of Business and the University of Pennsylvania.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Greater accountability for social impact. We look forward to the OZ industry continuing to pay attention to the social impact intention of the OZ program and provide greater reporting and transparency of the impact of their work. We invite other OZ funds to collaborate on developing unifying impact frameworks and metrics, which we believe will highlight the important work that is being done by many OZ funds.
Anthony Nanula
Sinatra & Co.
Anthony Nanula is chief investment officer at Sinatra and Company Real Estate LLC (SCRE), as well as his family’s investment company, Nanco Associates LLC, an investment partner in SCRE. Nanula brings tremendous business management and entrepreneurial acumen to SCRE. He also holds experience in public service, having been elected to the New York State Senate, Comptroller for the City of Buffalo and Deputy Comptroller for the State of New York. Nanula is a graduate of Syracuse University with a dual degree in marketing and supply chain management.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Our area of expertise is ground-up mixed use development and my view is that this segment will continue to be popular, especially in projects that also offer other tax benefits (Brownfield tax credits, etc.) to investors.
Joshua Perttula
Abington Emerson Investments, LLC
Joshua Perttula is the founder, CEO and member of the Investment Committee at Abington Emerson Investments, a private real estate company headquartered in Los Angeles, California. Perttula is also a member of the Board of Trustees of the California State Bar and vice chair of the Blue Ribbon Commission on the Future of the Bar Exam. He is a licensed attorney and real estate broker in the State of California. Perttula graduated with a B.A. in both economics and political science from the University of California, Irvine, and holds a J.D. from the University of California, Hastings College of the Law.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Multifamily residential has been the dominant sector since the inception of the OZ program, but with supply chain issues created by COVID, we have seen substantial demand for industrial projects in 2021. We expect industrial and multifamily to remain strong next year but are being mindful of the specific market fundamentals and absorption. In our opinion, affordable housing will increase in importance for the multifamily projects, while location will remain the most important factor for the industrial sector. Also, many 2019 OZ development projects are expected to be completed in 2022 and it will be interesting to watch the impact of those investments on the communities.
Anthony Rinaldi
Saxum Real Estate
Anthony Rinaldi, as founder and managing principal, oversees all aspects of Saxum’s strategic initiatives and operations, including investment strategy, acquisitions, capital raising, leasing activities, development and the execution and management of the firm’s portfolio. Rinaldi was recognized by Opportunity Zone Magazine as a Top 25 Opportunity Zone Influencer in the Fund Managers category in 2019, 2020 and 2021. Saxum launched its Opportunity Zone Fund in 2018. It was the third fund in the U.S. to launch and has received significant recognition for its first mover position. Rinaldi is a graduate of New York University with a bachelor’s degree in real estate finance. He currently serves on the editorial board for NAIOP’s Development magazine and a co-chair of the Developing Leaders program.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Opportunity Zones will continue to attract a significant amount of capital through 2022. With the majority of investors holding highly appreciated assets, investors will continue to look to diversify their portfolio by leveraging the program to increase their allocations to real estate. In general, industrial assets and housing continue to fuel the majority of the growth in the real estate sector and we will continue to see a significant amount of Opportunity Zone investment being placed within those product types.
Clark Spencer
Grubb Properties
Clark Spencer is a managing director, investments at Grubb Properties, where he leads the company’s Qualified Opportunity Fund program and private wealth capital raising platform. Since its inception, the QOF program at Grubb Properties has raised over $350 million across four funds. Prior to joining Grubb Properties, Spencer worked as a capital markets attorney in New York and North Carolina, where he focused on capital raising transactions, public company reporting, and corporate oversight. He received his J.D. and B.A.s in history and Germanic languages from the University of North Carolina at Chapel Hill.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
I think that QOFs will continue to grow in 2022 now that the program’s roots have been established in communities nationwide, and its early investments will start to deliver and bear fruit. Given the significant housing need in many of these communities, multifamily development, particularly in the essential housing segment, will continue to gain traction. Community engagement will become even more important to ensure that QOFs and developers are enhancing the communities in which they are investing. As the program enters its second phase, I hope to see utilization of new and existing commercial space by operating QOZ Businesses.
Avy Stein
Cresset Capital Management
Avy Stein is co-founder and co-chairman of Cresset Capital. Before launching Cresset, he was CEO and co-founder of Willis Stein & Partners, and co-founder of Lincoln Clean Energy (acquired by I Squared Capital.) Preceding that, Stein held leadership roles at Continental Illinois Venture, Cook Energy, and Cook International. He began his career at Kirkland & Ellis.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
Projects that began development when QOZs first launched are now being delivered and leased, creating new opportunities as the program intended. In these neighborhoods, we expect to see continued growth in multifamily housing, with ancillary retail use, given consumer demand. Additionally, most OZs support this type of land use, making it attractive to investors and developers. We’re optimistic on logistics, as the market shifts to accommodate pandemic-driven changes in how we live, work, and shop. Supply chain woes demonstrate how vital warehouses, shipping hubs, etc. in the right location are. Accordingly, we’re funding our first logistics project in an OZ, which we anticipate will help drive long-term job growth in the region.
Jonathan Tower
Arctaris Impact Fund, LP
Jonathan Tower is the founder and managing partner of Arctaris Impact Investors, LLC and its advisory affiliates and funds, which has raised and manages six impact investment funds. He invests in growth-oriented operating businesses and infrastructure, with heavy emphasis on underrepresented communities. Based in Boston, Massachusetts and founded in 2009, Arctaris has partnered with the Kresge Foundation, Initiative for a Competitive Inner City, and multiple other foundation, federal and state government agency partners to make investments in Opportunity Zones and other underserved areas, with the aim of delivering market-rate returns alongside social impact.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
The OZ program is directing more capital to underserved communities than all the other economic development tools in the shed combined. In 2022, we see QOFs enabling opportunities that blend capital from traditional sources alongside philanthropy, government and community institutions. Arctaris Impact will expand our place-based QOZ programs, already underway in Alabama, Colorado, Connecticut, Maine, Maryland, Michigan, New Mexico, Ohio, and Pennsylvania, with awards to new communities ranging $25-50 million, alongside 20% matches from government and philanthropic partners. Our focus will remain on investment in PE operating businesses, public infrastructure such as broadband fiber and community solar, and affordable housing.
Matthew Wachter
Erie Downtown Development Corporation
Matt Wachter is vice president for finance and development with the Erie Downtown Development Corporation (EDDC). Wachter oversees financial modeling and capital recruitment for a $100 million revitalization of downtown Erie, Pennsylvania. Wachter earned his LL.M. in taxation from Villanova University School of Law, began his career in M&A at KPMG, and practiced corporate law.
What kind of trends and new investment areas do you think QOFs will focus on in 2022?
In 2022, QOFs have a tremendous opportunity to recruit capital from investors eager to redeploy funds from increasingly volatile public markets. OZ-based real estate investments, in particular, have the potential to provide consistent returns for investors eager for stability and motivated to make a positive social impact in the nation’s poorest communities.
Margaret Anadu
Goldman Sachs
David Butler
Argosy Real Estate Partners
Steve Case
Revolution
Erik Hayden
Urban Catalyst LLC
Barry Sternlicht
Starwood Capital Group
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