Fifth Third Bank Names Decennial Group as Partner in Illinois for QOZ Investments
The initiative is part of a $100-million strategy announced last Friday by Fifth Third Bank to invest in Qualified Opportunity Zones across the nation
CHICAGO—Fifth Third Bank National Association, which is headquartered in Cincinnati, will partner with locally-based Decennial Group to invest $30 million in Qualified Opportunity Zones in Chicago and the Midwest.
The initiative is part of a $100-million strategy announced last Friday by Fifth Third Bank to invest in Qualified Opportunity Zones across the nation. Fifth Third reported last week it would partner with National Equity Fund, an affiliate of the Local Initiatives Support Corp. with a $25-million commitment and Raymond James with a $25-million commitment.
The bank also announced yesterday that it has committed $20 million in a partnership with Fallbrook Multifamily of Calabasas, CA in Qualified Opportunity Zone developments for its Fallbrook Opportunity Zone Fund II.
A host of state and city dignitaries were on hand for the bank’s announcement in Chicago on Monday, including Chicago Mayor Lori E. Lightfoot, Illinois Gov. JB Pritzker and officials with World Business Chicago.
Mitchell Feiger, regional chairman and CEO of Fifth Third Bank, Chicago, said, “With this agreement in place, Decennial Group is working to immediately identify qualified development opportunities in Chicago and other Midwest markets. The group’s goal is to deploy Fifth Third’s capital and accelerate market activity in order to create high-quality, affordable housing. Fifth Third expects to make a substantial commitment to Illinois with this program.”
Mayor Lightfoot said the new Fifth Third Bank, Decennial Group partnership expands the city’s INVEST South/West program and is expected to make $20 million available for investment in the city’s West and South sides.
Fifth Third Opportunity Zone investment projects that are currently being considered include the redevelopment of affordable and workforce housing with a minimum of 51% of the units are targeted to families with income at or below 80% of the area median income; forming a partnership with a housing authority organization to bring a grocery store to a food desert; investment in neighborhoods that are part of larger strategic growth initiatives in various cities; community centers for public housing residents and creating a commercial kitchen for use by small business entrepreneurs.
The $100-million nationwide investment will be used in three investment categories: affordable housing; workforce housing and other community priorities for multifamily development; and certain non-residential or mixed-use real estate serving a particular community need, as well as projects that contribute to local job and business growth.
The first projects from the Fifth Third Opportunity Zone investments will be announced during the second half of 2020.