$250M Alpha Capital Opportunity Zone Fund Acquires Nashville Development Site
Alpha Capital Partners of Bridgeville, PA reports that its Opportunity Zone fund has purchased 1501 Herman St. and is planning to develop a 300-unit multifamily project there, according to Jide Famuagun, CEO of Alpha Capital.
NASHVILLE—A $250-million Opportunity Zone fund launched six months ago has made its first deal—the purchase of a qualified Opportunity Zone parcel in Downtown Nashville.
Alpha Capital Partners of Bridgeville, PA reports that its Opportunity Zone fund has purchased 1501 Herman St. and is planning to develop a 300-unit multifamily project there, according to Jide Famuagun, CEO of Alpha Capital.
Company officials tout the property’s location within walking distance from the Amazon’s Nashville Yards expansion that is creating 5,000 new jobs in the area. The project is within the Marathon Village, a premier retail entertainment destination housing approximately 40 creative office tenants.
No financial terms of the land deal or the ground-up development project were released.
Thomas McGahan, CFA, managing director of investments for Alpha Capital says, “We are excited to have acquired the first project in our Opportunity Zone Fund. The location of this project is a significant win given its proximity to affluent residential neighborhoods and modern retail concepts. We believe having connectivity to these areas will be highly beneficial in generating stable cash flow and a great valuation at exit.” McGahan manages the Opportunity Zone fund.
Alpha Capital Partners’ Famuagun adds, “Our team is excited about the opportunity in a prime location. Alpha’s development and construction teams are up and running with project execution and we are looking forward to delivering a 300-unit multifamily community Downtown Nashville, a very strong growth market.”
When Alpha launched the Opportunity Zone fund in October 2018, the firm stated that the fund had a target of raising $250 million and at that time had already received funding commitments of $95 million.
The real estate investment firm develops, acquires and manage student-housing and multi-family communities in secondary and tertiary markets. Alpha Capital currently owns more than 30 properties in growth markets across the United States.