Real Estate investment management firm Pinnacle Partners announced this week the closure of its twelfth Qualified Opportunity Zone Fund (QOF), securing $90 million in investments. The Fund invested in four residential development projects: two market-rate multifamily communities within NFL stadium districts in Denver and Nashville, TN; one build-to-rent single-family home community in Avondale, AZ; and one build-to-rent townhome community in Charlotte, NC.
Created with the Tax Cuts and Jobs Act of 2017, Opportunity Zone tax incentives spur economic growth and job creation in communities while providing investors with a series of tax incentives. Investors with capital gains from any source may reinvest their proceeds into a QOF, defer their tax liability until the end of 2026, enjoy tax-efficient cash flow by using depreciation (without recapture), and earn the greatest benefit of tax-free appreciation if the new investment is held for at least ten years.
“Though our twelfth fund, this represents an entirely new chapter for Pinnacle Partners in this being our first multi-asset fund,” said Pinnacle Partners Co-Founder and Managing Partner Leo Backer. “We work on behalf of our investors to identify what we believe to be institutional-quality projects, sourced through exclusive relationships, that offer portfolio diversification in addition to substantial tax advantages.”
- In Denver, Pinnacle and JV partner Mortensen expects to complete the Revival on Platte, a 200-unit, market-rate apartment complex within Denver’s Sun Valley neighborhood adjacent to Denver’s Stadium District Master Plan in April 2025.
- In Charlotte, a 68-unit, build-to-rent townhome project called Reve NoDa Junction with partner Trilogy Investment Co. is now approx 75% leased.
- In Avondale, a suburb outside Phoenix, Pinnacle and development partner Trilogy Investment Co. expects to go vertical in Q1 2025 on a 107-unit build-to-rent single-family community.
- In Nashville, Pinnacle Partners and partner Stillwater Capital are planning a 300-unit apartment development adjacent to the new Tennessee Titans Stadium and Oracle world headquarters.
“We’re excited to close on the funding for these four projects that will deliver much-needed housing solutions in growing markets around the country,” said Pinnacle Partners Co-Founder and Managing Partner Jeff Feinstein. “This successful fundraise is further evidence of the confidence our investors have in Pinnacle Partners.
The company is actively in the market with its next QOF focused on build-to-rent opportunities in the Southeast, which has identified three shovel-ready development projects with Trilogy Investment Co. as co-general partners.
