Pinnacle Partners Opportunity Zone Fund VIII

Fund Overview

Pinnacle Partners has sourced a robust pipeline of new OZ projects to create a diversified multi-asset fund portfolio comprised of very select identified projects with premier developers in selected growth markets.


The General Partner has formed Pinnacle Partners Opportunity Zone Fund VIII, LP (the Fund) to invest in multifamily projects in carefully selected top OZ markets in the U.S.

EQUITY OFFERING
$100M+
TARGET RETURN
10-12% irr

before tax  benefits

TARGETED NUMBER OF PROJECTS IN THE FUND
*4 PROJECTS

*potential of up to 6 projects

ATTRACTIVE POTENTIAL TAX ADVANTAGE
300 bps 

increase in IRR (estimated)

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Fund Details

Pinnacle Partners Opportunity Zone Fund VIII, LP (the “Fund”) is a qualified opportunity zone fund (a “QOF”) under IRC Section 1400Z-2 (the “Code”) raising $100M+ . The Fund is a Multi-Asset, diversified, specified, 10-year QOF, with a top management team having over three years of QOF management with nine successful prior projects. 


The sole sponsor of the offering of limited partnership interests in the Fund is the Fund’s general partner, Pinnacle OZ GP, LLC (the “General Partner”), a newly formed Delaware limited liability company controlled and majority owned by Pinnacle Partner Management LLC. Pinnacle Partner Management LLC and affiliates (collectively, “Pinnacle Partners”) will provide the General Partner with the personnel, facilities and pipeline to enable the General Partner to serve as the Fund’s general partner.

Investment Highlights

OUTSTANDING PIPELINE requiring $100M+ of investment OZ capital for high quality OZ projects


INVESTORS FIRST: The General Partner is targeting strong risk adjusted returns of 10-12% IRR net to investors by providing one of the most competitive fee structures in the Opportunity Zone marketplace, sourcing compelling opportunities, and partnering with best-in-class developers


CURATED, TARGETED PORTFOLIO: Our robust pipeline of new opportunities has aligned to produce our first multi-asset fund creating a diversified portfolio of very select identified assets with premier developers in a variety of growth markets with significant upside


NOT A ” BLIND FUND”: Unlike other OZ capital aggregator funds, we are sizing capital to capitalize discrete set of projects, not blind pool


VISIBILITY INTO FUND’ S INVESTMENTS: The General Partner is providing its investors with transparency and visibility into the fund’s investments at every step of the way


DEAL REVIEW: Our investors will have complete transparency on each project similar to our original single asset underwriting focus


CO- INVEST AND SIDE- CAR PARALLEL INVESTING rights provided

Fund Strategy

The Fund will invest joint venture equity in a portfolio of institutional quality multifamily properties located in selected Qualified Opportunity Zones.

  1. Multifamily assets offer investors the potential for consistent operating performance which can lead to attractive risk-adjusted returns
  2. Income producing real estate with fixed price debt has historically been shown as a hedge against inflation
  3. PP Fund VIII managers will seek to construct a diversified investment portfolio consisting of multiple well-located assets 
  4. The managers target markets with the following long-term positive trends: population growth, income growth, educational attainment, employment growth, and housing spend relative to income

Fund Leadership

LEO BACKER

Managing Member

Leo is a Founder and Managing Partner of Pinnacle Partners where he leads developer partnerships,  project sourcing, real estate due diligence, and serves on the investment committee. Leo is the Co-  Managing Member of the General Partner.

Leo had a 35 year career in corporate real estate brokerage representing tenants and buyers across the U.S.   His tenant representation practice along with years of development experience with site acquisition, project underwriting, and leasing adds tremendous value to Pinnacle’s project  selection process. Leo was involved with the early planning and development of Seattle’s South Lake Union submarket as he was advising Paul Allen’s real estate company, Vulcan Northwest.  This included the first phases of Amazon’s HQ relocation, and UW Medicine Research Center.

JEFF FEINSTEIN

Managing Member

Jeff is a Founder and Managing Partner of Pinnacle Partners where he leads investor relations and  operations management. Jeff is the Co-Managing Member of the General Partner.

Jeff has been an active real estate and venture investor. He was an advisor to Schuster Realty  Partners, real estate private equity fund and responsible for fundraising and investor relations. Jeff has provided management and consulting services to early stage startups, including establishing go-to-market strategy for companies such as Backtrace, Volometrix and Extrahop.

JILL HOMAN

Managing Director

Jill Homan is a Managing Director of Pinnacle OZ GP, LLC where she co-heads developer partnership, leads real estate due diligence, and serves on the investment committee.

Jill has more than fifteen years’ experience in real estate development totaling almost $500 million in capitalization. She has co-developed projects in Opportunity Zones and successfully raised and closed OZ capital. In addition, she has applied her knowledge of emerging communities and expertise in policy and real estate to advise investors and family  offices on the OZ incentive. She earned MBA and MPP degrees from Duke University.

Highly Engaged Advisory Board

The GP advisory board members represent a diverse and highly engaged group of experts who have significant experience across commercial real estate, Opportunity Zone policy and corporate governance.

A-P HURD

SkipStone

A-P Hurd is the president of SkipStone, a consulting firm that provides real estate\and planning  services to private and public clients.

A-P is the former president of Touchstone, a real estate development company that built nearly  3M SF of office, retail, hotel and residential space between 2007 and 2017 and won the national  Developer of the Year award in 2016.  A-P is also faculty member and Runstad Fellow in the  College of Built Environments at the University of Washington, where she teaches a course on  land economics and public policy.

MOLLIE FADULE

Cephas Partners

Mollie is a senior leader in the commercial real estate industry with significant experience in real  estate, private equity and real estate/construction technology. She’s recognized as a thought  leader with expertise and experience with institutional investors across multiple property types  and companies representing over $10b. She’s the Chief Financial and Investment officer at JPI, a  developer, builder and investment manager of Class A multifamily assets with a 30-year history  having developed over 100,000 units. She is also Co-Founder and a Partner of Cephas Partners,  a private equity firm specializing in alternative investments with a focus on real estate related  opportunities - formed in 2012 to assist affiliates of The Blackstone Group. In her work with  Blackstone, Mollie managed investments, co-invested and acted as a board and IC member. Prior to Cephas Partners, Mollie was a VP at Bank of America Merrill Lynch in the Real Estate  Principal Investments group in New York. She also served as an analyst in the Real Estate Group  at UBS Investment Bank -- also in New York.

GLYN AEPPEL

Glencove Capital, LLC

Glyn Aeppel is Founder, President and CEO of Glencove Capital, a boutique and lifestyle  hospitality investment and advisory company. Glencove is the only woman-owned and operated  hospitality investment firm in the U.S.

Since its founding in 2010, Glencove Capital has invested in hotels and restaurants, all in  partnership with high net worth investors and developers. Most recently, Glencove launched  a lifestyle hospitality investment platform – the first investment is in a European brand – MOB  HOTEL-OF-THE-PEOPLE – based in Paris.

Aeppel has spent many years as a senior corporate executive raising capital, asset managing,  and investing in hotel companies and assets for major corporations including Marriott,  Interstate Hotels, Le Meridien, Fairmont Hotels and Resorts and Loews Hotels.

Prior to founding Glencove, Aeppel served as a partner and Chief Investment Officer of Andre  Balazs Properties.

In addition to oversight of Glencove, Aeppel serves as a board member of Simon Property Group  (NYSE:SPG), AvalonBay Communities (NYSE:AVB), Exclusive Resorts, Gilbane, Inc. and Concord  Hospitality Enterprises. She is also chairman of the Advisory Board of 1843 Capital, an early stage  female-founded technology venture firm.

Aeppel holds an MBA from Harvard Business School, and a BA Honors from Principia College.  She was born in South Africa and has also lived in Europe, Bermuda and the United States.

WALT SMITH

Avenue5 Residential

Active in the property management industry since 1986, Walt was one of the three founding  principals of HSC Real Estate, serving as its president from 2001 until it was acquired by Riverstone  Residential Group in 2008. At the time of the Riverstone transaction, HSC provided property  management and ancillary services for more than 34,000 apartment homes in California and  the Pacific Northwest. Walt became CEO of Riverstone in 2009 and provided strategic vision and  leadership for its portfolio of more than 800 managed properties and 4,500 associates. During  his four-year tenure, Walt fostered a vibrant and collaborative company culture, significantly  expanded the ancillary services platform, and drove substantial income and unit growth that  ranked Riverstone as the second largest management company in the United States.

In 2014, Walt and the legacy HSC partners formed Avenue5 Residential to manage their 7,000 unit  Investors Capital Group portfolio in the Western United States. Avenue5 Residential, a solutions-  based portfolio management services company, commenced third-party management services  for the multifamily industry in November 2015.

Today, Avenue5’s portfolio has grown to more than 440 properties and 84,000 units across 15  states, managed by over 2,100 associates. The company appeared on the Puget Sound Business  Journal’s list of fastest-growing private companies in Washington for the past three years.

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