Origin Investments Closes $300M Fund

Rendering of AVA Madison in suburban Nashville. Image courtesy of Origin Investments

Chicago-based real estate fund manager Origin Investments has closed its Origin Qualified Opportunity Zone Fund II after raising more than $300 million. The equity has already been put to work investing in seven ground-up multifamily rental developments totaling more than 2,500 units in five communities.

Origin anticipates that when fully invested, the QOZ Fund II portfolio will include several additional ground-up rental developments with a total portfolio construction value of at least $500 million.

This is the second Opportunity Zone fund closed by Origin. Origin The firm’s Qualified Opportunity Zone Fund I raised more than $264 million. The fund manager has raised more than $585 million between the two Opportunity Zone funds and an independent sidecar Qualified Opportunity Zone offering and committed to 18 ground-up multifamily rental communities totaling more than 6,269 units with a construction value exceeding $1 billion. With that level of fundraising, Origin ranks in the top 2 percent of Opportunity Zone managers that report equity raised, according to Novogradac’s proprietary industry research.

Rendering of RISE St. Augustine in Jacksonville, Fla. Image courtesy of Origin Investments

Based on ongoing investor demand and a robust development pipeline, Origin is planning to launch its third Opportunity Zone fund, Origin Qualified Opportunity Zone Fund III, in the next 60 to 90 days.

Michael Episcope, Co-CEO Origin Investments, said in a prepared statement that the firm’s ability to raise more than $564 for opportunity zone fund developments is a testament to a perpetual demand for investment vehicles that seek to produce returns along with unique tax advantages. Episcope said Origin has been a consistent leader in sourcing viable ground-up development opportunities in fast-growing target markets. Since its founding in 2007, the private real estate manager has executed more than $2.8 billion in real estate transactions.

Fund II projects

The projects that have received investments from Origin’s Qualified Opportunity Zone Fund II are located in Atlanta, Colorado Springs, Colo., Nashville and Jacksonville and Tampa, Fla.:

• Edgehill Commons – a 740-unit rental community that is being developed in phases in downtown Nashville with joint venture partner Marquette Properties.
• Two Rivers Ranch – a $70 million, 256-unit multifamily community that will be developed in Tampa with joint venture partner Roers Cos.
• 500 Sawtell – a 1,600- multifamily community that will be developed in phases in downtown Atlanta with joint venture partner Kaplan Residential.
• Elan Rio Grande – a $70 million, 207-unit multifamily rental property located in Colorado Springs that is being developed with joint venture partner Greystar.
• RISE St. Augustine – a $99.1 million, 272-unit build-for-rent residential community in Jacksonville being developed with joint venture partner RISE.
• AVA Gainesville – an $86 million, 231-unit BFR residential community in suburban Atlanta being developed with TWO Capital Partners.
• AVA Madison – an $84.8 million, 199-unit BFR residential community in suburban Nashville also being developed with TWO Capital Partners as a joint venture.

Last month, Origin and TWO Capital Partners announced the Atlanta and Nashville area BFR projects along with a third near Charlotte, N.C., called Ava Matthews. Combined, the three properties will total 523 units. Ava Matthews will cost approximately $55.7 million and offer 163 residences, of which 100 will be apartments. The project will also offer 37 detached single-family homes and 26 townhomes.

Origin has also worked in the past with RISE. Last year, the firms partnered for the second time to build Horizon at Sereno, a 320-unit multifamily development in Tampa, Fla.