Alpha Capital Partners Seals 2nd Opportunity Zone Deal

The private equity real estate investment firm is adding a 342-bed student housing community to its Opportunity Zone portfolio and plans to reposition the property, which is located near the University of Louisiana at Lafayette.
University Place. Rendering courtesy of Alpha Capital Partners

Alpha Capital Partners has chalked up the second deal under its $250 million Opportunity Zone strategy by acquiring a 342-bed student housing community in Lafayette, La. The property, University Place, marks Alpha’s 10th student housing asset and brings the company’s platform to more than 2,100 student beds under management.

The real estate investment and development firm launched its Opportunity Zone Fund with a target raise of $250 million last October, aiming to take advantage of the federal tax incentive program. The new fund clinched its maiden acquisition in March, picking up a land parcel to develop a 300-unit multifamily property in Nashville, Tenn.

The latest purchase involves the nearest student housing property to the University of Louisiana at Lafayette, which has an enrollment of more than 17,000. Located within a Qualified Opportunity Zone (QOZ) at 200 Oakcrest Drive, University Place features a significant number of one- and two-bedroom units. Amenities include a 24-hour fitness center, swimming pool, cybercafé and access to a private pedestrian bridge connecting to the adjacent campus.

Alpha Capital Partners plans to reposition and rebrand the asset and improve the resident experience through a value-add strategy, CEO Jide Famuagun said in a prepared statement. He noted that the project would be supported by “significant capital” made possible by the Opportunity Zone program.

$30B in funds chasing QOZ properties

A host of real estate industry players have rolled out funds targeting Opportunity Zone investments after the QOZ program was created as part of the 2017 U.S. tax overhaul. NKF Research told Multi-Housing News that funds nationally are looking to raise an estimated total approaching $30 billion, although a good portion of this money has yet to be raised and may not materialize.

Investment sales volume in Opportunity Zones reached a peak of $60 billion in 2018, up 94 percent from five years earlier, as investors are increasingly moving beyond the coastal gateway markets in search of yields, according to NKF.

Alpha Capital Partners focuses on student housing, multifamily and medical offices in secondary and tertiary markets. The private equity real estate investor owns and manages a growing portfolio of more than $300 million in net assets across the U.S.

The company recently purchased a 228-unit multifamily community north of Cincinnati from URS Capital Partners, according to Yardi Matrix.