Caliber Launches New Qualified Opportunity Zone Fund Merger Program
Caliber (NASDAQ: CWD) has launched its new Qualified Opportunity Zone Fund Roll-Up (QOF Roll-Up) program, offering a solution for investors struggling to realize the full benefits of these complex investment vehicles. The program has completed its first merger, resulting in a $14 million increase in managed capital for Caliber's existing QOF, bringing the total managed capital in Caliber's two QOFs to over $225 million.
The QOF Roll-Up program aims to help investors who have created smaller 'family funds' but face challenges in deploying funds into qualified projects. Caliber, as an early adopter of QOFs, is well-positioned to deploy new QOF capital into potentially attractive projects, particularly in distressed real estate properties.
Caliber's two QOFs, CTAF I and CTAF II, target investments in diversified real estate portfolios across high-growth Southwest U.S. opportunity zones. The company has already earmarked a portion of the new capital for its Canyon development project in Central Phoenix, planning to convert a Class A office building into a multifamily complex.
Caliber (NASDAQ: CWD) ha lanciato il suo nuovo programma Qualified Opportunity Zone Fund Roll-Up (QOF Roll-Up), offrendo una soluzione per gli investitori che faticano a realizzare i pieni benefici di questi complessi strumenti di investimento. Il programma ha completato la sua prima fusione, con un aumento di $14 milioni nel capitale gestito per il QOF esistente di Caliber, portando il capitale totale gestito nei due QOF di Caliber a oltre $225 milioni.
Il programma QOF Roll-Up si propone di assistere gli investitori che hanno creato ‘fondi familiari’ più piccoli, ma affrontano difficoltà nell'impegnare i fondi in progetti qualificati. Caliber, essendo un pioniere dei QOF, è ben posizionata per investire nuovo capitale QOF in progetti potenzialmente interessanti, in particolare in proprietà immobiliari in difficoltà.
I due QOF di Caliber, CTAF I e CTAF II, mirano a investire in portafogli immobiliari diversificati nelle zone di opportunità del Southwest statunitense ad alta crescita. L'azienda ha già destinato una parte del nuovo capitale per il suo progetto di sviluppo Canyon a Central Phoenix, con l'intenzione di convertire un edificio per uffici di Classe A in un complesso multifamiliare.
Caliber (NASDAQ: CWD) ha lanzado su nuevo programa Qualified Opportunity Zone Fund Roll-Up (QOF Roll-Up), ofreciendo una solución para los inversores que luchan por aprovechar los beneficios completos de estos complejos vehículos de inversión. El programa ha completado su primera fusión, resultando en un aumento de $14 millones en capital gestionado para el QOF existente de Caliber, llevando el capital total gestionado en los dos QOF de Caliber a más de $225 millones.
El programa QOF Roll-Up tiene como objetivo ayudar a los inversores que han creado fondos 'familiares' más pequeños, pero enfrentan desafíos para desplegar fondos en proyectos calificados. Caliber, como pionero en los QOF, está bien posicionado para desplegar nuevo capital QOF en proyectos potencialmente atractivos, particularmente en propiedades inmobiliarias en dificultades.
Los dos QOF de Caliber, CTAF I y CTAF II, tienen como objetivo invertir en carteras inmobiliarias diversificadas en zonas de oportunidad de alto crecimiento en el suroeste de EE. UU. La empresa ya ha asignado una parte del nuevo capital a su proyecto de desarrollo Canyon en Central Phoenix, planeando convertir un edificio de oficinas de Clase A en un complejo multifamiliar.
칼리버(NASDAQ: CWD)가 새로운 자격 기회 구역 펀드 롤업(QOF Roll-Up) 프로그램을 출시하여 이러한 복잡한 투자 수단의 모든 이점을 실현하는 데 어려움을 겪고 있는 투자자들을 위한 솔루션을 제공합니다. 이 프로그램은 첫 번째 병합을 완료하여 칼리버의 기존 QOF에 대해 1400만 달러 증가한 관리 자본으로 이어졌으며, 칼리버의 두 QOF에서 관리되는 총 자본은 2억 2500만 달러 이상에 이릅니다.
QOF 롤업 프로그램은 더 작은 '가족 펀드'를 만든 투자자들을 돕고자 하며, 자격을 갖춘 프로젝트에 자금을 배분하는 데 어려움을 겪고 있습니다. QOF의 초기 채택자로서 칼리버는 새로운 QOF 자본을 잠재적으로 매력적인 프로젝트, 특히 어려운 부동산에 배치할 수 있는 좋은 위치에 있습니다.
칼리버의 두 QOF, CTAF I과 CTAF II는 미국 남서부의 고성장 기회 구역에서 다양화된 부동산 포트폴리오에 대한 투자를 목표로 합니다. 이 회사는 새로운 자본의 일부를 중앙 피닉스의 카니언 개발 프로젝트에 이미 지정했으며, A급 사무실 건물을 다가구 복합단지로 전환할 계획입니다.
Caliber (NASDAQ: CWD) a lancé son nouveau programme Qualified Opportunity Zone Fund Roll-Up (QOF Roll-Up), offrant une solution aux investisseurs peinant à réaliser l'intégralité des avantages de ces véhicules d'investissement complexes. Le programme a terminé sa première fusion, entraînant une augmentation de 14 millions de dollars du capital géré pour le QOF existant de Caliber, portant le capital total géré dans les deux QOF de Caliber à plus de 225 millions de dollars.
Le programme QOF Roll-Up vise à aider les investisseurs qui ont créé de plus petits 'fonds familiaux' mais rencontrent des défis pour déployer des fonds dans des projets qualifiés. Caliber, en tant que précurseur des QOF, est bien positionné pour déployer du nouveau capital QOF dans des projets potentiellement attrayants, en particulier dans des propriétés immobilières en difficulté.
Les deux QOF de Caliber, CTAF I et CTAF II, ciblent des investissements dans des portefeuilles immobiliers diversifiés à travers des zones d'opportunités à forte croissance du sud-ouest des États-Unis. L'entreprise a déjà prévu une partie du nouveau capital pour son projet de développement Canyon à Central Phoenix, avec le projet de transformer un immeuble de bureaux de classe A en un complexe multifamilial.
Caliber (NASDAQ: CWD) hat sein neues Qualified Opportunity Zone Fund Roll-Up (QOF Roll-Up) Programm gestartet, um eine Lösung für Investoren zu bieten, die Schwierigkeiten haben, die vollen Vorteile dieser komplexen Investitionsvehikel zu realisieren. Das Programm hat seine erste Fusion abgeschlossen, was zu einem 14 Millionen Dollar Anstieg des verwalteten Kapitals für Calibers bestehenden QOF geführt hat, sodass das insgesamt verwaltete Kapital in Calibers zwei QOFs über 225 Millionen Dollar liegt.
Das QOF Roll-Up Programm zielt darauf ab, Investoren zu unterstützen, die kleinere 'Familienfonds' erstellt haben, jedoch Herausforderungen beim Einsatz von Mitteln in qualifizierte Projekte gegenüberstehen. Caliber, als früher Anwender von QOFs, ist gut positioniert, um neues QOF-Kapital in potenziell attraktive Projekte, insbesondere in belastete Immobilien, zu investieren.
Calibers zwei QOFs, CTAF I und CTAF II, zielen auf Investitionen in diversifizierte Immobilienportfolios in hochwachstumsfähigen Opportunity Zones im Südwesten der USA. Das Unternehmen hat bereits einen Teil des neuen Kapitals für sein Canyon-Entwicklungsprojekt in Central Phoenix eingeplant, wobei die Umwandlung eines Bürogebäudes der Klasse A in einen Mehrfamilienkomplex vorgesehen ist.
- Launched new QOF Roll-Up program to attract additional investment
- Completed first merger, increasing managed capital by $14 million
- Total managed capital in Caliber's two QOFs now exceeds $225 million
- Potential for increased recurring annual asset management fees
- Planned conversion of Class A office building to multifamily complex in Phoenix
- None.
Insights
Caliber's launch of the QOF Roll-Up program is a strategic move that could significantly impact its financial position. The
- Increased recurring annual asset management fees
- Potential for higher AUM and performance fees
- Enhanced ability to deploy capital into attractive projects
The program addresses a market need for smaller QOFs struggling with deployment or project completion, potentially positioning Caliber as a leader in QOF consolidation. The planned conversion of the Canyon development in Phoenix aligns with high-growth market trends, particularly given its proximity to major developments like the Metrocenter Mall redevelopment and the TSMC campus. However, investors should note that real estate development carries inherent risks, especially in the current economic climate with fluctuating interest rates and construction costs.
Caliber's QOF Roll-Up program is an innovative solution in the Opportunity Zone space. By merging smaller, potentially struggling funds, Caliber can leverage its expertise and scale to more effectively deploy capital and manage projects. The acquisition of the Canyon development in Central Phoenix is particularly noteworthy:
- Converting Class A office to multifamily aligns with current market demands
- Proximity to
$850 million Metrocenter Mall redevelopment and planned light rail extension enhances location value - Nearness to TSMC campus could drive strong rental demand
The mid-2025 construction start allows time for market conditions to potentially improve. Caliber's in-house development and construction management capabilities are important for assessing and improving mid-stream projects, which could be a significant advantage when absorbing other QOFs. However, the success of this strategy will depend on Caliber's ability to effectively manage a rapidly growing portfolio and navigate the complexities of multiple opportunity zone projects simultaneously.
Raises
QOFs offer investors the ability to reduce and eliminate short and long-term capital gains tax liabilities by investing in a professionally managed real estate fund that completes new developments that are impactful to the communities within each zone. According to the Economic Innovation Group, thousands of QOFs have been created since the program was enacted in 2017. Many participating investors were advised to create “family funds”, which are smaller funds held by the investor and their family members. Some of these investors have found it challenging to deploy those funds into qualified projects that comply with the program’s rigorous guidelines.
“Caliber’s new QOF Roll-Up program is an excellent option for existing QOFs, including single-asset or single-family funds,” said Chris Loeffler, CEO of Caliber. “Many of these funds have investment capital to deploy but lack access to quality investment targets. Additionally, some funds have made investments and are facing challenges to finish their projects. As one of the first firms in
Currently, Caliber manages two QOFs, CTAF I and Caliber Tax Advantaged Opportunity Zone Fund II, LLC (CTAF II), both of which are equity funds targeting investments in a diversified portfolio of real estate properties and real estate-related equity investments in select opportunity zones located in high-growth markets across the
Jade Leung, Caliber’s CFO, stated, “This and future contributions through the QOF Roll-Up program offer an attractive new path to grow Caliber’s managed capital, in addition to traditional fundraising, with potentially larger investments per transaction. The merger immediately increases Caliber’s recurring annual asset management fees. As the capital is deployed into projects, it will also increase the firm’s assets under management (AUM) and potential to generate performance fees through a carried interest in projects.”
Caliber has already targeted a portion of this new capital for its newly acquired Canyon development project in
About Caliber (CaliberCos Inc.)
With more than
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the Company’s public offering filed with the SEC and other reports filed with the SEC thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241001141816/en/
Caliber:
Victoria Rotondo
+1 480-295-7600
Victoria.Rotondo@caliberco.com
Media Relations:
Stephanie Forshee
Financial Profiles
+1 310-622-8230
SForshee@finprofiles.com
Source: Caliber
FAQ
What is Caliber's new Qualified Opportunity Zone Fund Roll-Up program?
How much capital did Caliber (CWD) raise with its first QOF Roll-Up merger?
What is the total managed capital in Caliber's Qualified Opportunity Zone Funds after the merger?
What project is Caliber planning with the new capital from the QOF Roll-Up program?
