NORF Opportunity Zone Fund closes ‘on record raise’
By: CityBusiness staff reports February 18, 2020 0
New Orleans Redevelopment Fund has closed its latest real estate investment fund, aimed at development in ‘Opportunity Zones,’ to new investors.
The NORF 3 Opportunity Zone Fund “had a strong investor fundraise in the low eight figures that will enable NORF to continue its strategy of impactful investments in blighted properties that are transformative to neighborhoods,” said Cullan Maumus, development director of NORF. “In partnering with our investors, we are fulfilling our vision in providing positive returns for our partners and our community. We were very impressed with the considerable interest we had from potential OZ investors that we are already in the works for a new NORF 4 Opportunity Zone Fund.”
NORF’s initial OZ projects include the former Warwick Hotel at 1315 Gravier St., a 12-story commercial building shuttered since Hurricane Katrina. The 130,000-square-foot building, located across from City Hall, will be converted into apartments, which was its original use.
NORF also has acquired an adjacent lot at 380 S. Liberty St. with plans for a high-rise structure to support offices near the Charity Hospital, which is being redeveloped.
380 s liberty
NORF also acquired a warehouse at 455 S. Galvez St. in Mid-City near the medical district and plans to convert the historic building into a food hall concept.
NORF will also be re-developing a blighted historic building in downtown Houston with plans for mixed-use multifamily and ground floor retail, a news release said.
These projects are using federal and state Historic Tax Credits, and potentially New Markets Tax Credits and other tax incentives, the release said.
NORF, in existence since 2013, completed over 50 Historic Tax Credit projects in New Orleans within its first two private equity real estate investment funds. The organization plans to focus on redeveloping those types of properties in OZs, which were created by the Tax Cuts and Jobs Act of 2017 to incentivize investors to re-invest capital gains in economically distressed areas.