On August 19th, OZ FundHub hosted our first OZFH Connect Multi, a new format for our pitch session webinar that features three different Opportunity Zone funds going head to head. If you missed it, you can watch video highlights on our OZFH Video page.
For our August webinar, we were honored to have Silicon Real Estate legend Tom Tognoli as a guest host. Tom is currently a partner at an early stage Venture Capital firm, and he previously co-founded and sold the largest real estate firm in the Silicon Valley (Top 10 in the nation), Intero Real Estate Services, to Berkshire Hathaway. Tom is also a seasoned real estate investor and developer, and an OZ investor. Presenting for our participating fund was Caliber Co. was CEO Chris Loeffler.
Caliber closed their previous Opportunity Zone fund in June, and promptly began fundraising for their next offering in July. Caliber’s motto is to provide wealth development for the middle market of OZ projects. The middle market typically means smaller projects, in the $100-500 million range, that tend to fly under the radar of larger investment institutions. Chris also cited other benefits of the middle market as the opportunity for scaled costs, greater project diversification and an entrepreneurial deal platform.
Caliber currently has roughly $3.5 billion under management and assets under development. Their fund, called CTAF II (Caliber Tax Advantaged Opportunity Zone Fund II) is a co-investment structure to invest directly in a mixed use fund. Structuring it in this way makes this style of investment available to a broader market. The Caliber team plans to adjust the strategy as needed for upcoming legislative changes to the OZ program. Since Caliber is vertically integrated, they act as the developer, construction manager and real estate broker on their own projects. This cuts down on costs and fees on projects, making them more streamlined and cost effective.
Caliber is an impact investment company, with an opportunistic strategy of buying land and developing it or taking on adaptive mixed-use projects. Based in Scottsdale, Arizona, their investment focus has been on sunbelt states including Arizona, Colorado, Nevada, Utah and Texas. With CTAF II, they plan to increase geographic diversification. CTAF II has a $250 million target, with a $100,000 minimum investment. Caliber is currently in escrow with an 80-acre mixed use development in Scottsdale, called The Riverwalk Vertical Development. They are also planning on other projects that will encompass multifamily housing, new medical offices and assisted living communities.