Round Hill Capital Invests in first qualified opportunity zone workforce housing development in Fort Lauderdale, Florida
Round Hill Capital is investing in a workforce housing development project located in the Progresso Village district of Fort Lauderdale, Florida, which qualifies as an Opportunity Zone under the Tax Cuts and Jobs Act of 2017 (“TCJA”). TCJA provides tax incentives for certain long-term investments intended to create economic growth in areas where it is most needed.08 April 2019
Round Hill Capital Invests in First Qualified Opportunity Zone Workforce Housing Development in Fort Lauderdale, Florida as Part of Expanding its Commitment to U.S. Housing Market
Round Hill Capital, a leading global real estate investment, development and asset management firm, today announces that it is investing in a workforce housing development project located in the Progresso Village district of Fort Lauderdale, Florida, which qualifies as an Opportunity Zone under the Tax Cuts and Jobs Act of 2017 (“TCJA”). TCJA provides tax incentives for certain long-term investments intended to create economic growth in areas where it is most needed.
This development, which will comprise a building called The SIX13, represents the first in a series of investments that are planned under a new joint venture between Round Hill Capital and Affiliated Development, a Fort Lauderdale-based real estate development firm. The JV is actively pursuing and developing a significant multifamily housing portfolio in underserved areas within South Florida, as well as workforce housing projects in other Qualified Opportunity Zones. This investment forms part of Round Hill Capital’s Environmental Social and Governance (“ESG”) Strategy, demonstrating its commitment to targeting opportunities that bring about a positive social impact.
The SIX13 will consist of 142 moderately-priced rental units and targets residents who have been priced-out of the downtown Fort Lauderdale market. The SIX13 will offer high quality amenities and facilities, including an elevated pool deck, fitness room with yoga/cycling studio, community room, co-working facility, rooftop observation deck, private dog park, free bike usage, hi-speed wi-fi and full-time concierge. The building will also include 5,900 sq ft of ground floor retail space and 197 garage parking spaces. Located two blocks west of Fort Lauderdale’s fastest-growing Flagler Village neighbourhood, The SIX13 is also near the new Fort Lauderdale Brightline Station, which provides public transportation access to downtown Miami and downtown West Palm Beach in approximately 30 minutes. The SIX13 is expected to open by Summer 2020.
In November 2018, Round Hill Capital closed on its first U.S. investment, The Exchange at North Haven, a high-quality, 411-unit inner suburban apartment community located in the Brookhaven/Chamblee neighbourhoods of Atlanta, GA. This represented the start of an ongoing program of investment in the U.S. to grow a significant multifamily housing portfolio, focused on stable, attractive, income-producing assets.
In partnership with the Fort Lauderdale Community Redevelopment Agency, The SIX13 development project received $7 million in gap financing, helping to enable the joint venture partnership to offer high-quality apartments at a reasonable and attainable rate. City National Bank are providing a construction loan of $19.3 million.
Rob Reiskin, Senior Managing Director, Head of Americas at Round Hill Capital, said:
“We are proud to be supporting the growing Fort Lauderdale community in Florida by providing residents with much-needed, high-quality, reasonably-priced housing options. The SIX13 is exactly the type of investment that the Opportunity Zone program is intended to generate – South Florida is an attractive region with strong demographics and a highly skilled workforce that has been increasingly priced out of the region.
“This investment, which will help to create economic growth, is consistent with Round Hill Capital’s track record of investing in and operating quality residential accommodation assets and we are enthusiastic about our strong pipeline of investment opportunities in the U.S. housing market.”
Michael Bickford, Founder and CEO of Round Hill Capital, commented:
“We are excited to be expanding our presence in the U.S. and continue to identify acquisition opportunities backed by attractive investment fundamentals and strong future growth drivers, while helping to generate long term economic benefits to areas and communities that most need it.
“As one of Europe’s largest owners and managers of residential real estate, we look forward to bringing our significant expertise and resources to this area for the benefit of the communities where we operate, sophisticated investors and our best-in-class development and operating partners.”
About Round Hill Capital
Round Hill Capital is a leading global real estate investment, development and asset management firm. Since inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 110,000 residential units and student housing beds. Round Hill Capital is a responsible landlord of assets offering housing to a range of occupants, from students through to senior citizens.
Round Hill Capital has an established track record of generating high risk-adjusted returns and invests in and asset manages real estate on behalf of some of the world’s leading institutions and private investors.