OZ FundHub Connect features USG Realty Capital

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 USG Realty Capital was founder and CEO Greg Genovese. 

USG realty Capital

USG Realty Capital took the stage to present their Opportunity Zone offering, Investor’s Choice. USG has raised over $2 billion investment equity, and over $4.5 billion in assets acquired in their over 30 years in business. Their latest offering will be their 4th OZ fund since 2019. CEO Greg Genovese explained that there are several factors that contribute to what they believe is the ‘USG difference’. First, USG is national in scope, but primarily considering projects in infill areas that tend to be more recession resilient. Second, the infill projects they are interested in are typically smaller, in the $20-50 million range. Projects of this size have several advantages:  the ability to leverage more competition between lenders, projects are typically built faster and cash flow positive sooner. USG focuses on working with local and regional developers who are area experts, and they typically pre-purchase key materials so they don’t get a surprise by a supply chain issue or jump in pricing. USG takes an asset management approach, where they comanage the project with developer partners. Greg stated that this helps keep USG aligned with their investors. 

USG believes that the Investor’s Choice structure offers the best of all worlds to investors. It offers multi-project diversification options with single-project concentration. With Investor’s Choice, investors can choose which USG projects their investment funds. USG will offer asset management oversight of the developers and the projects, third party regulatory compliance and social impact reporting. The fund target is $50 million, with a $50,000 minimum commitment. 

Currently, USG has several project options open to investment in the Investor’s Choice portfolio and pipeline. Current options include senior living in Bristol, Connecticut; new multifamily housing in Houston, Texas and multifamily housing in Tacoma, Washington.