EJF Capital seeks better luck with second Opportunity Zone Fund

Company’s first such fund raised $280M of $500M target

National /
Apr.April 14, 2021 09:00 AM
EJF Capital Co-CEO Manny Friedman (EFJ)

EJF Capital Co-CEO Manny Friedman (EFJ)

Manny Friedman’s EJF Capital is launching another Opportunity Zone fund after falling short of its expectations for its first.

EJF will launch its second Opportunity Zone fund this week, targeting industrial and multifamily developments.

The firm closed its first such Fund in January, with $280 million raised of a $500 million goal. It launched the fund in 2018.

Through the fund, EJF has completed five developments, including multifamily projects in Washington, D.C., Jacksonville, Florida, and Vancouver, Washington. It has invested in a hotel development in Oakland, California and two industrial properties in Hardeeville, South Carolina. It has additional projects under construction.

In addition to starting its own fund, EJF had also partnered Anthony Scaramucci’s SkyBridge Capital in 2018. Scaramucci planned to set up the fund as a real estate investment trust with EJF as the fund’s subadvisor. It was seeking to raise $3 billion from investors.

Scaramucci called Friedman “one of the exemplary investors of his generation.”

But the partnership dissolved after a few months. SkyBridge’s president Brett Messing said there were concerns from distribution partners about EJF’s lack of experience managing real estate funds.

In late 2019, Scaramucci told The Real Deal that the firm only raised $30 million for its Opportunity Zone fund and lowered its investment target to $300 million.

The Opportunity Zone program, born out of the 2017 tax overhaul, gives real estate developers and investors generous tax breaks for investing in one of 8,700 designated areas across the country. It was pegged as the new best thing for real estate investors since the 1031 exchange. But after much hype, developers had trouble finding suitable projects that made sense to invest in.

The program has also come under scrutiny from watchdog groups and Congressional Democrats as being a tax break for the rich. Many Opportunity Zones developers said that they would have built their projects regardless of the tax incentive.

EJF, which manages $5.9 billion in assets, declined to comment on its latest fund. It is unclear how much money the firm is seeking to raise.





    Related Articles

    arrow_forward_ios
    Bridge Investment Group Executive Chairman Robert Morse and Candlelight Village (Bridge, Candlelight Village)
    Bridge Investment purchases manufactured homes community for $30M
    Bridge Investment purchases manufactured homes community for $30M
    Rendering of Bronzeville Lakefront Development & Farpoint Principal Scott Goodman
    Farpoint-led team at Michael Reese megaproject lands anchor tenant for innovation center
    Farpoint-led team at Michael Reese megaproject lands anchor tenant for innovation center
    Chicago Community Loan Fund Chief Operating Officer Bob Tucker and a rendering of Ogden Commons
    Chicago lags behind other big cities in Opportunity Zones projects
    Chicago lags behind other big cities in Opportunity Zones projects
    Peppercorn Capital founder Phil Denny and the development site at 1217 W. Washington Boulevard (Credit: Google Maps)
    Peppercorn Capital lists West Loop development site to focus on Opportunity Zone investments
    Peppercorn Capital lists West Loop development site to focus on Opportunity Zone investments
    From left: 548 Capital managing partner A.J. Patton, partner Erica Johnson and director of acquisitions Charles Cole (Credit: iStock)
    Opportunity Fund eyes $100M for
    solar-powered affordable housing
    Opportunity Fund eyes $100M for
    solar-powered affordable housing
    DAX Real Estate managing partners Daniel Hedaya and Max Seibald with 7500 South South Shore Drive
    New York investor asking $20M for apartments in “appreciating” South Shore
    New York investor asking $20M for apartments in “appreciating” South Shore
    From left: A rendering of the Burnham Lakefront, Mayor Rahm Emanuel, former Governor Bruce Rauner, and a map of Opportunity Zones in Chicago (Credit: Getty Images; Map by Haru Coryne)
    How a $2B redevelopment site in Chicago landed in a federal Opportunity Zone: A TRD investigation
    How a $2B redevelopment site in Chicago landed in a federal Opportunity Zone: A TRD investigation
    Opportunity Zones venture looking to raise $1B for projects in “America’s Heartland”
    Opportunity Zones venture looking to raise $1B for projects in “America’s Heartland”
    Opportunity Zones venture looking to raise $1B for projects in “America’s Heartland”
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...