MIAMI-DADE COUNTY, FLORIDA
SF QOZ FUND I
A qualified opportunity zone fund
SFQOZ FUND Acquires large land assemblage in Arts & Entertainment District
AS FEATURED IN
OVERVIEW
SF QOZ Fund I, LLC, is a private real estate investment fund, formed primarily for the purposes of qualifying as a “qualified opportunity zone fund” (QOF) and investing in unimproved or improved real estate located in “qualified opportunity zones” (QOZ) in Miami-Dade County, Florida. Specifically, the Fund is targeting properties in submarkets that have significant possibilities for capital appreciation, such as properties requiring ground-up development, redevelopment, or repositioning, with an emphasis on land entitled for multifamily rental and mixed-use development or existing class-c multifamily assets.
TARGET MARKET
Miami-Dade County, Florida
Miami-Dade County is home to approximately 2.8 million residents and is part of the Miami MSA (South Florida), which has a population of more than 6.3 million residents. Miami welcomes more than 16 million visitors each year, and has one of the highest percentages of well-educated, foreign-born populations of any metropolitan area in the U.S.
HISTORICALLY LOW VACANCY
On average, occupancy rates in Miami have hovered around 96% over the past few decades, and occupancy rates in 2022 increased to 97.5%.
COMMITMENT TO QOZ PROGRAM
Local leaders and community stakeholders are committed to the QOZ Program and prioritizing market-rate and workforce multifamily development projects.
RAPID GROWTH
Miami is projected to lead all major U.S. markets in employment growth as a percentage of the existing labor count. Over 57 companies relocated or expanded into Miami in 2022, with 150 companies following suit within the next few years.
INCREASE DEMAND FOR MULTI-FAMILY HOUSING
With the limited availability of new apartments and the increasing costs of single-family home prices in Miami, 75% of renters in Miami renewed their lease in 2022. On average, 32 prospective renters competed for vacant apartments and apartments remained vacant for only 25 days (the lowest number of days among all major cities in the U.S.).
INVESTMENT STRATEGY
INVESTMENT APPROACH
The Fund will use a disciplined investment approach that combines the experience of the Development Sponsors and the Fund Sponsors experience with a structure that emphasizes thorough market research, stringent underwriting standards, an extensive down-side analysis of the risks of each investment and active and aggressive management strategies.
STRATEGIC SUBMARKETS
The Fund is targeting sites in the Little Haiti, Little River, Hialeah, and Edgewater submarkets that are ideally situated within walking distance to various amenities, businesses, and restaurants, as well as Brightline stations, which will provide density bonuses, waivers of ad-valorem taxes, beneficial RTZ zoning, reduction in parking requirements, and other Transit-Oriented Development benefits available under the Zoning Code of Miami-Dade County, Florida, and the Miami 21 Zoning Code.
GROUND-UP DEVELOPMENT/VALUE-ADD
The Fund is targeting either unimproved or improved real estate. After acquisition, the Development Sponsors will facilitate the development, redevelopment, and construction of a mixed-use multifamily development on such parcels through renovation and repositioning of any existing improvements or by way of ground-up development.
QUALIFIED OPPORTUNITY ZONE PROGRAM
“Extremely tight Class C availability has underscored interest for lower-tier rentals, particularly in the metro’s more affordable submarkets. Assets in areas like Little Havana, North Beach, Hialeah-Miami Lakes, Miami Gardens-Opa-locka and Homestead-South Dade are sought after, with first-year returns that still provide margins above elevated borrowing costs.”
– Marcus & Millichap 2023 Multifamily Investment Forecast
QOZ PROGRAM OVERVIEW
- Established in December 2017, as part of Public Law 115-97 (commonly known as the “2017 Tax Cuts and Jobs Act” (TCJA))
- Encourages social advancement and private investment in economically distressed or underdeveloped communities throughout the U.S. by providing tax incentives to investors for investing capital into these communities through qualified opportunity zone funds (QOF)
- Miami-Dade County, Florida has 67 census tracts designated as qualified opportunity zones (QOZ), which are home to over 352,000 residents
QOZ INVESTOR INCENTIVES
EXAMPLE QOZ INVESTMENT TIMELINE
DEVELOPMENT SPONSORS
McCaffery Interests is a nationally recognized full-service real estate company with a reputation for approaching business with honesty and tenacity while producing a quality of work that exceeds the industry benchmark.
McCaffery has over 31 years of experience, $3 billion in real estate assets developed, and over 20 million square feet of assets under management. McCaffery has a long legacy of building and transforming properties that have become the centerpieces of neighborhoods.
Grand View Development Company is a vertically integrated commercial real estate company. Grand View has over 30 years of commercial real estate development experience and developed over $2 billion in commercial real-estate properties throughout the U.S., including in Florida.
Kobi Karp Architecture & Interior Design is an award-winning international firm renowned for redefining the Miami skyline. With over 30 years of experience and a $120 billion global portfolio, they provide the visionary design and technical excellence central to our transformative real estate developments. Their innovative approach ensures each project becomes a landmark of resilient, world-class design within Miami’s most promising Opportunity Zones.
FUND SPONSORS
DAVID S. COHEN
David Cohen is the co-founder of the Fund and the owner of Cohen Law Firm, PLLC, and Cohen Property Law Group, PLLC. David has extensive experience representing individuals, mid-size and small-size corporations in partnership and limited liability company law. He regularly advises clients that range from start-up ventures to large companies to nonprofit/charitable tax-exempt organizations and professional corporations. David has over 16 years of commercial real estate and private equity experience.
David is a member of the Washington State Bar Association and the State Bar of Texas.
LIAM T. KRAHE
Liam Krahe is the co-founder of the Fund and the managing attorney of Cohen Property Law Group, PLLC, a national commercial real estate and securities law firm based out of Miami, Florida. Liam has extensive experience representing clients in complex commercial real estate transactions including leasing, financing, acquisitions and dispositions, joint ventures, syndications, and operations. Liam regularly advises developers and property owners in the purchase, sale, and development of commercial real estate, including retail shopping centers, office buildings, multifamily and mixed-use projects, and hotel and hospitality transactions.
Liam is a member of the International Council of Shopping Centers (ICSC), the Urban Land Institute (ULI), the Florida Bar, and the Pennsylvania Bar Association.
CONTACT US
SF QOZ Fund I
1221 Brickell Avenue
Suite 900 - #274
Miami, Florida 33131