Clearwater fund wants to raise $40M to chase opportunity zone deals throughout the Southeast, including Tampa, and the Southwest
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Apr 20, 2020

A Clearwater-based opportunity zone fund wants to raise up to $40 million to invest in real estate deals throughout the Southeastern and Southwestern U.S., with a focus on mixed-use, multifamily, self-storage and hotel properties located in opportunity zones.

Opp Zone Capital LLC said it has launched OZC–Southern US RE QOF Qualified Opportunity Fund, which is authorized to raise up to $40 million. Opportunity zones are federally designated areas with tax perks for investors and developers who invest there. Taxpayers who incurred a capital gain and wanted to invest in an opportunity zone for tax breaks typically face a 180-day deadline to do so. Because of the coronavirus pandemic, the IRS has extended any capital gains deadline that fell between April 1 and July 15 to July 15.

As the fund manager, OZC's roster includes professionals with experience in real estate fund management, tax and audit, portable storage, franchising, hospitality, health care and financial services.

OZC says it will target development projects, new construction projects nearing completion and value-add deals across the different property sectors. Here's a breakdown of what the fund will pursue:

Hospitality: Both value-add and new construction hotel projects in secondary and tertiary markets in the South. The fund is looking for hotels near universities and hospitals, in cities that seem likely to have an increase in tourism in the near future.

"Our hope is that targeting newly constructed properties will benefit the fund from a cash flow perspective, since we can eliminate the extended time period that would otherwise take place during construction," the fund said in a statement.

Self-storage: The fund plans to develop self-storage facilities in secondary and tertiary markets in the South.

"The experience and history of our development partners (including the development partner) with obtaining permits, requesting zoning changes and having projects approved in difficult localities for self-storage usage is why we believe we will be able to successfully execute on our acquisition strategy," the fund said in a statement.

Multifamily: OZC will also pursue development projects on the multifamily side, in secondary and tertiary markets showing positive trends for the multifamily sector — increased job creation rates, downward-trending vacancies and rents on the rise.

"We expect to locate land in these regions at below market rate prices through the acquisition of off-market properties for the ground-up development of our units," the fund said.

OZC was co-founded by Jeanine Warhurst Blake, who was senior vice president of global partnerships for PODS and daughter of PODS founder Peter Blake. She will serve as chief operating officer and general partner, overseeing day-to-day operations as well as contracting and managing employees and consultants.

Blake has also launched two business ventures of her own: Express Medical Transporters of Tampa Bay, which was a Florida-based non-emergency medical transport company that she grew and sold off in 2010, and a “red bag service" hazardous waste disposal company that focused on the pharmaceutical industry.

Co-founder Edmon Rakipi will serve as chief investment officer and general partner. Rakipi's resume includes the hospitality and restaurant world as well as financial services and retail. He met and worked with Blake at EMTTB. His responsibilities are expected to include "developing both short-term and long-term investment objectives, sourcing and evaluating investment opportunities, supervising team personnel for purposes of conducting due diligence and underwriting prospective projects, leading acquisitions and dispositions, managing and allocating capital across the fund’s investments, and overseeing the fund’s compliance with the Opportunity Zone incentive program," according to the fund.