HACKENSACK, N.J.--(BUSINESS WIRE)--18 SQUARED GP, LLC (“18 Squared”) and CAPZONE IMPACT INVESTMENTS LLC (“CapZone”), have closed an equity investment in a new U.S. Department of Veterans Affairs (“VA”) Outpatient Clinic in Albert Lea, Minnesota. The Albert Lea VA Clinic provides primary care, mental health services, tele-medicine, and other healthcare services to United States Veterans. The terms of the investment were not disclosed.
18 Squared and CapZone formed the Opportunity Zone Fund 1 – Government Series (the “Fund”) to invest in U.S. Department of Veterans Affairs clinics and hospitals and other government-related real estate projects in Opportunity Zones nationwide. The Albert Lea VA clinic is the first facility in a portfolio of VA-leased properties within the Fund that are expected to be closed over the next 12 – 24 months. 18 Squared and CapZone say future Fund investments will focus on VA medical education and training campuses (“METC”) and off-base military housing for U.S. military bases.
“18 Squared is proud to partner with CapZone Impact Investments on the first of many Qualified Opportunity Zone projects,” said Mark Germain, General Partner of 18 Squared. “CapZone’s deep expertise and proprietary deal flow in Opportunity Zones aligns well with 18 Squared’s stringent investment criteria and focus on new tax-incentivized real estate projects.”
“CapZone’s partnership with 18 Squared accelerates funding and economic growth to Opportunity Zone projects that support Government and military facilities throughout the nation,” said Al Puchala, CapZone’s Chief Executive Officer. “This investment in a new U.S. Department of Veterans Affairs healthcare facility is the first of several in our pipeline of Opportunity Zone investments, which will support public sector facilities, residential properties near military bases and workforce housing for military contractors.”
Opportunity Zones are a federal economic and community development tax benefit, added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. As enacted by 26 USC 1400Z-1, a “Qualified Opportunity Zone” is a low-income census tract that is designated as a Qualified Opportunity Zone. Equity investments in Opportunity Zones can drive attractive tax-free returns for investors provided certain conditions are met.
About 18 SQUARED GP, LLC
18 SQUARED GP, LLC is a privately-owned real estate private equity firm focused on non-correlated, income producing real estate investment opportunities in multifamily development and workforce housing. 18 Squared has a specialized portfolio of properties which include workforce housing, value-add multifamily rental units, commercial industrial properties, and Opportunity Zone projects throughout the U.S. For more information about 18 SQUARED GP, LLC, please visit www.18squared.com.
About CAPZONE IMPACT INVESTMENTS LLC
CapZone Impact Investments LLC is a leading national Opportunity Zone investment platform focused on sourcing and deploying ESG plus Resilient equity investments that drive social impact at scale to benefit low-income communities. CapZone was founded in early 2018 as an innovative investment model to connect profits to purpose in Opportunity Zones. CapZone invests in Environmental, Social and Governance plus Resilience investments in real estate, sustainable infrastructure, and job creating operating businesses. For more information about CapZone Impact Investments LLC, please visit www.capzonegroup.com.