PITTSBURGH, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Alpha Capital Partners announced the launch of Alpha Opportunity Zone Fund I. The investment strategy will focus on student and multifamily real estate projects within qualified opportunity zone tracts established through the Tax Cuts and Jobs Act of 2017.
Managed by Thomas McGahan, CFA, the Fund will leverage Alpha’s core competencies, over what could be multiple real estate cycles given the longer-term time horizon, to deliver a solid, risk-adjusted return profile. It will target property investments within qualified opportunity zones in Pittsburgh and Houston alongside Alpha Capital’s already strong, secondary market footprint. Thomas McGahan said, “We are excited at the prospect of what the opportunity zone framework provides in enabling us to translate our historical track record into an even more favorable return profile given the unprecedented tax benefits.” With a minimum investment of $100K and a target of raising $250M, the Fund is well on its way with commitments of $95M.
The opportunity zone tax incentive program was passed in December of 2017 as part of the Tax Cuts and Jobs Act. By investing in opportunity zones, the program encourages investment in low income communities by permitting individuals and entities alike to defer recognition of taxes on their recently realized capital gains. Unlike a 1031 exchange, gains do not need to be of “like kind”; capital gains from stocks, bonds, real estate or other assets can be invested into qualified opportunity zone funds. The new regulations state that through a step up in basis investors will receive tax relief of 10% after 5 years, 15% after 7 years and a frictionless exit after 10 years.
When asked about the launch Jide Famuagun, CEO of Alpha Capital, said, “Providing students with affordable housing is something that we feel passionately about at Alpha Capital.” He continued, “When we began looking into the program earlier this year we were surprised to learn that 40% of our student housing properties already fell within designated tracts. By continuing to follow our investment strategy of strict upfront screening, disciplined underwriting, and precise execution of property level operating plans, I anticipate strong results.”
About Alpha Capital Partners:
Alpha Capital Partners is a Pittsburgh-based real estate investment firm that acquires student-housing, multi-family and medical offices in secondary and tertiary markets. The company is a leader in the middle-market space and has delivered higher-than-expected margins and risk-adjusted returns. Alpha Capital Partners is continuously growing its portfolio and currently owns 29 properties in growth markets across the United States.
For additional information, visit www.alphacapitalpartners.com
IR Contact:
Aly McCaffrey
Investor Relations Manager
Alpha Capital Partners, LLC
832-789-1794
alyson@alphacapitalpartners.com