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 11:30 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
    Interstate Industrial Park at 6555-6557 Garden Road (Google Maps, iStock)
    Koda Interstate buys Riviera Beach industrial park for $13M
    Koda Interstate buys Riviera Beach industrial park for $13M
    From left: Ronald Fieldstone, Scott Meyer, Carlos Rodriguez Jr., Logan Gans, Stevan Pardo and Jaime Sturgis (Twitter, iStock/Illustration by Alexis Manrodt for The Real Deal)
    Opportunity Zone investors pour in ahead of key deadlines
    Opportunity Zone investors pour in ahead of key deadlines
    Citywalk Apartments at 415 Northwest Ninth Street (Courtesy of The Porosoff Group)
    Multifamily complex in Overtown Opportunity Zone hits market for nearly $12M
    Multifamily complex in Overtown Opportunity Zone hits market for nearly $12M
    BH3 co-founders Daniel Lebensohn and Greg Freedman (BH3, iStock)
    Legal battle erupts over BH3’s public-private Delray Beach project inside Opportunity Zone
    Legal battle erupts over BH3’s public-private Delray Beach project inside Opportunity Zone
    Rendering of the project, Richard Paul Richman, Deme Mekras and Elliot Shainberg
    Richman plans senior housing on Allapattah Opportunity Zone property
    Richman plans senior housing on Allapattah Opportunity Zone property
    1550 Northeast Miami Place with Jordan Gimelstein (Credit: DWNTWNRealtyAdvisors,LLC)
    Development site in Miami’s A&E District asks $21M
    Development site in Miami’s A&E District asks $21M
    21440 Biscayne Boulevard and listing broker Jonathan Molano
    Opportunity Zone site in Aventura hits market, could trade for $100M, broker says
    Opportunity Zone site in Aventura hits market, could trade for $100M, broker says
    Alex Zylberglait of Marcus & Millichap and 2020 Northeast 163rd street
    Argentine investor nabs North Miami Beach Opportunity Zone property
    Argentine investor nabs North Miami Beach Opportunity Zone property
    arrow_forward_ios

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

    Loading...