Bernstein Cos. Launches Opportunity Zone Fund

BETHESDA, MD—Locally-based Bernstein Cos., is joining the ranks of companies forming Opportunity Zone funds to take advantage of their favorable tax status.

Bernstein Cos., which among other activities is currently in the process of building the new global headquarters for Marriott International here, is partnering with OPZ Capital, an Opportunity Zone Fund manager, to launch OPZ Bernstein.

OPZ Bernstein, a subsidiary of The Bernstein Cos., will be led by Craig Bernstein, who is the founder of OPZ Capital, and The Bernstein Cos.’ Stefan Kershow, who is executive director of Structured Finance.

OPZ Bernstein is launching their first fund, the “OPZ Bernstein Opportunity Zone Fund I,” on Feb 1, 2019. The firm is in the process of raising capital from accredited investors and will be deploying the capital across the country. The portfolio will be diversified both geographically and by product type, with a core focus on multifamily development in urban locations.

Adam Bernstein, president of The Bernstein Companies, highlighted not only the tax advantages of these funds but also their social mandate. “Moving forward, we look to provide our investors with compelling risk adjusted returns, that are not only tax efficient, but also positively impact the communities in which we invest,” he says.

Although the final regulations for Opportunity Zones are not in place yet, interest in these vehicles has been sky high. The Bernstein Cos. says it received numerous inquiries from investors and possible development partners about Opportunity Zones.

The company also has the infrastructure to operate an Opportunity Zone fund and has a track record in deploying capital into the census tracts that make up the Opportunity Zones, according to Craig Bernstein. “Over the past 15 years, The Bernstein Cos. has successfully allocated over $1.5 billion into New Market Tax Credit transactions across 40 states, a majority of which overlap with the recently approved Opportunity Zones,” he says.