USG Realty Capital has created a joint venture with OZI Group to launch an investor-directed, multi-asset opportunity zone investment platform, which will debut their first opportunity zone fund this month.
Through the proprietary investor-directed platform, accredited investors can choose as much diversification or project concentration as they please. The USG/OZI Opportunity Zone Platform has several projects and developer partners identified for the platform rollout and expects between five to 10 projects in total, each needing approximately $10 million to $15 million in investment equity. The platform is focused on multifamily, senior living, storage and manufactured housing asset classes.
“We aim to deliver better asset manager alignment with opportunity zone investors, versus the more common developer-driven funds, in which the developers also serve as the asset manager and therefore create a dynamic that is ripe for conflicts of interest,” said Greg Genovese, CEO of USG/OZI Opportunity Zone Investment Platform and founder of USG Realty Capital. “During the heart of the COVID-19 pandemic, these conflicts of interest became all too evident. We’ve developed an investment platform that allows the sponsor and asset manager to work amicably and collegially with the various developer partners, and puts us, the sponsor, squarely on the side of the investor as the asset manager, to serve as their advocate.”
Candidate opportunity zone projects will be run through the proprietary USG/OZI Opportunity Zone Investment platform screening process and due diligence filter, which includes, among many other factors, studying asset class and demographic recession resiliency as well as long-term profitability.