ARLINGTON, Va.--(BUSINESS WIRE)--EJF Capital LLC (“EJF”), a global alternative asset management firm, today announced the successful closing of its inaugural Opportunity Zone investment fund, EJF OpZone Fund I LP (the “Fund”) with approximately $280 million1 in investor subscriptions and commitments.
The Fund, which launched in August 2018 in response to the federal Tax Cut and Jobs Act of 2017, aims to take advantage of the resulting tax benefits for investing in lower income census tracts known as “Opportunity Zones.” There are more than 8,700 Qualified Opportunity Zones across the U.S.
“The Opportunity Zone investment strategy is a good fit for EJF given our focus on regulatory driven investment ideas combined with our industry expertise in financials and real estate,” said Neal Wilson, Co-CEO of EJF. “The real estate team here at EJF has done an excellent job creating a diversified portfolio of Opportunity Zone investments focused on multifamily and industrial development.”
Asheel Shah, Head of Real Estate Development at EJF, added, “We are very pleased with the confidence shown in EJF by the investors in the Fund, many of whom invested more than once. The Fund’s investor base is comprised of numerous high-net-worth investors, RIAs and broker dealers, corporations, a leading private bank, and a state pension fund.”
The Fund has closed on eight investments to date including development projects in Washington, D.C., Florida, California, Washington state, South Carolina, and Maryland. Four of the projects are now completed and leasing up, three are under construction and one is in final regulatory approvals with construction expected to commence this year. Of the $280 million of capital commitments raised, approximately $219.0 million has been committed to these eight projects and EJF expects to identify and close on additional Opportunity Zone investments by the end of 2021.
About EJF Capital
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of December 31, 2020, EJF manages approximately $5.9 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its strategy to invest in Opportunity Zones.
1 Includes undrawn capital of approximately $26 million.