First three assets have appreciated 21% over development cost
Pacific Oak Capital Advisors, a sponsor, and Pacific Oak Capital Markets, manager and distributor of real estate-focused alternative investment programs, announced the close of Pacific Oak Opportunity Zone Fund I, LLC (the “Fund”) with approximately $118 million in total assets.
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Launched in 2019, the Fund was formed to invest in, develop, redevelop and manage a diversified portfolio of institutional quality commercial real estate assets with an emphasis on multifamily properties located in Qualified Opportunity Zones in the United States.
The Fund is currently invested in three multifamily properties at different stages of completion and lease-up and is seeking additional investments to further diversify the portfolio. As of the Fund closing, the Fund’s portfolio was valued at $118 million, a 21% appreciation over the development cost of the portfolio. The first two properties are in the Phoenix area. Imperial Apartments is a low-rise, suburban multifamily property comprised of 140 units and located east of downtown Phoenix. Construction of the property was completed in the latter half of 2021. St. Ambrose Apartments is a low-rise, suburban-style multifamily property comprised of 241 units and is expected to be completed during the third quarter. The last property, The Byway, is 20 minutes from Portland, Oregon. The garden-style, suburban multifamily property is comprised of 173 apartment units and 10,000 square feet of complementary retail space. The multifamily portion was completed in the fourth quarter of 2021 and the retail space is expected to be completed by the end of the second quarter.
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“Lease-up rates and rental levels at both Imperial and The Byway have been strong and ahead of our initial projections,” said Peter McMillan, co-founder of Pacific Oak Capital Advisors. “We remain broadly optimistic about the market fundamentals for multifamily and the Fund will continue to seek additional investment opportunities while maintaining our discipline on deal selection.”
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