A crowdfunding platform is piling into Opportunity Zones.
CrowdStreet is launching a $20 million fund that will target new developments and redevelopments in small and mid-market designated Opportunity Zones, the Oregon-based firm said Monday.
The firm did not specify in which cities it is looking to place investor capital. However, the targets do not appear to be major gateway markets.
“These markets are up-and-coming metro areas with population and job growth rates that, in many cases, are outpacing larger 24-hour cities such as New York and San Francisco,” said CrowdStreet’s Ian Formigle in a statement.
The fund will be managed through CrowdStreet Advisors, the company’s registered investment advisory service that administers real estate investments for its clients.
Numerous Opportunity Zone-related funds have popped up over the last year and a half, seeking to capitalize on the program that provides long-term investors significant tax benefits for pouring capital into designated regions, most of which are distressed.
Starwood Capital Group and Brookfield Asset Management are among the firms that also launched massive Opportunity Zone funds for projects across the country.
CrowdStreet said it also has raised equity on its marketplace for six projects located in Opportunity Zones. Since its launch in 2014, the firm said it has crowdfunded $700 million in capital through its platform for real estate projects across the country.