Courtesy of RiazCapital.

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NEW YORK CITY- Riaz Capital, a development,construction and property management firm based in Oakland,California, has zeroed in on its $100 million capital commitmentgoal for its Opportunity Zone fund, securing an estimated $75million in capital commitments. The funding will support theconstruction of 12 new housing developments in Oakland OpportunityZones.

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When Riaz's team went on the road to raise funding, the firmquickly figured out what worked and what didn't in investor pitchmeetings. Simply communicating the need for affordable housing inunderserved areas and the Opportunity Zone-tax benefits wouldn't beenough, Riaz Taplin, principal of Riaz Capital, tellsGlobeSt.com.

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But pairing that with how Riaz's investment thesis would takeactionable steps to alleviate the area's homeless crisis and caterto the area's demographics, captured investor attention anddollars. "We expressed that we have a real solution to a realproblem," Taplin said.

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Thus far, the fund, dubbed the ABD OzoneFund, has allocated proceeds forits Affordable By Design business modelfor acquisitions, design and the eventual management of anestimated 2,000 housing units.

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The ABD model targets the housing needs of Bay-Areaprofessionals earning between $40,000 and $120,000. The area has anestimated shortfall of 408,000 units that are considered affordableto this target demographic.

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Riaz Capital currently has seven development sites in OaklandOpportunity Zones, offering low-risk returns. Once completed, thesmall-site developments will provide housing to an estimated 2,161Oaklanders, with average monthly rents of $1,675, residences thatare below 30 percent of the average monthly income in the area.

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.