CHARLOTTE, NC (January 24, 2022) – Grubb Properties, a leading vertically integrated commercial real estate firm, today announced that it closed the 2021 Qualified Opportunity Fund with $152 million raised. This brings the total raised across the three funds in its Qualified Opportunity Fund program to $370 million.
Grubb’s primary strategy of providing essential housing through its Link Apartments brand has resonated with Opportunity Zone investors since the inception of the Qualified Opportunity Fund series, culminating in $63 million allocated to the 2021 Qualified Opportunity Fund in December alone.
Grubb will consolidate its 2019, 2020 and 2021 Qualified Opportunity funds into a new REIT entity, the Link ApartmentsSM Opportunity Zone REIT, offering investors enhanced diversification and scale. The new REIT entity will scale Link Apartments℠ into a broader set of markets and will relaunch to raise new capital in the first quarter of 2022.
Grubb Properties’ Link ApartmentsSM communities are geared to those earning between 60% and 140% of area median income (AMI). There are currently 19 Link Apartments℠ communities stabilized or under construction across the country, totaling 4,935 multifamily units, with 16 additional communities in the pipeline. The communities offer an amenity-rich living experience to residents who want to live near transit, employment, and entertainment venues. Essential housing and Link ApartmentsSM fill the gap between subsidized and luxury apartments, offering residents desirable apartments in accessible locations.
“Providing essential housing through Link ApartmentsSM directly addresses the serious housing shortage facing the country today,” said Clark Spencer, Managing Director, Investments, and manager of the Qualified Opportunity Fund series. “We believe Link ApartmentsSM achieves the goals of the Opportunity Zone legislation, improving communities without introducing excessive gentrification impacts, while providing a compelling investment opportunity.”
Fund Consolidation to Offer Enhanced Diversification and Scale
In order to better position the Grubb Qualified Opportunity fund program for future opportunities and provide current investors with enhanced diversification, the three existing Grubb Qualified Opportunity funds will be consolidated into a new entity: the Link ApartmentsSM Opportunity Zone REIT. The new $370 million entity was approved by shareholders in late 2021 and is expected to go into effect in the first quarter of 2022.
The new fund shares the investment goals and REIT structure of the previous funds. The REIT launches with the 15 communities previously owned by the three Qualified Opportunity funds, including recently announced Link ApartmentsSM developments in gateway markets in California (Los Angeles, CA and Oakland, CA) and New York (Queens, NY and Hempstead, NY).
About Grubb Properties
Grubb Properties, founded in 1963, is a vertically integrated real estate fund manager focused on the Essential Housing space through its Link ApartmentsSM brand. The company targets residents earning between 60% and 140% of area median income (AMI), directly addressing a growing crisis for essential housing, while providing residents with exceptional living spaces. Grubb Properties maintains a long-term perspective and its careful and measured approach to real estate investment has delivered resilient and impressive returns. Grubb Properties has received numerous sustainability designations and recognitions, and undergoes annual ESG assessments through GRESB. For more information, visit www.grubbproperties.com.
Grubb Properties’ CEO Clay Grubb is the author of the book “Creating the Urban Dream: Tackling the Affordable Housing Crisis with Compassion.”
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