114 OPPORTUNITY ZONE MAGAZINE | ISSUE 2 • VOLUME 2
square feet of new mixed-use space , breaking ground in 2021 . Eagle OZ offers investors a venue to participate in this wave of financial and social upside with the added bonus of OZ incentives .
Eagle OZ projects a 20 % annualized 10-year return ( post tax adjusted IRR ) with 6 % interim cash distributions . Current market value of Eagle OZ units is $ 350,000 per door , while our cost is $ 300K , so we are coming out of the gate with value creations . In 10 years , our exit plan is to sell these units as condos to homebuyers . We are currently raising $ 20 million for Eagle OZ Fund II .
Specifically , Eagle OZ is building 264 multi-family units across infill vacant lots , delivering 283,000 sq . ft . of new living space for more than 1,300 people , without displacing anyone , with a target 20 % affordability ratio . Part of our business plan has always been to improve quality of life for our tenants and Eagle OZ is pleased to provide features that improve living comfort and safety in Bronzeville , as measured by IRIS and impact standards . We are creating at least 150 new construction jobs and 10 new permanent jobs , drawing at least 25 % from the local labor pool , and at least 10 % of our construction work is subcontracted to minority owned businesses .
TELL US ABOUT THE NATIONAL HERITAGE AREA ACT IN RELATION TO YOUR PROJECT ?
Bronzeville is before Congress to be named a National Heritage Area because of its historical significance as a hub of Black culture leaving an outsized footprint on America . The likes of Nat King Cole , Gwendolyn Brooks and Louis Armstrong , amongst many others , found fame here . If the Bronzeville-Black Metropolis National Heritage Area Act is approved by Congress , National Park Service will be engaged to maintain Bronzeville , directing public funding to tell this nationally important story and preserve its remaining buildings and traditions . Eagle OZ is honored to do its part to revitalize this important corner of American history .
$ 10 billion of catalytic growth happening in Bronzeville , while delivering stable cash returns during the 10 year holding period .
• Minimal risk and downside with new construction of multi family in a submarket of the nation ’ s three largest city where there in strong demand by renters and homebuyers , with limited supply of new housing .
• Contribute to the establishment of better housing quality standards in Bronzeville , which has already been set in motion by other local developers .
WHAT DID IT MEAN FOR YOU TO WIN AND HOW DID THE PARTICIPATION IN THE COMPETITION HELP WITH YOUR FUNDRAISING ?
Winning this competition provided validation that Eagle OZ is truly setting in motion a long-lasting positive change . Positive change has always been a primary reason for doing what we do in Chicago . It is very satisfying to receive recognition for Eagle OZ ’ s efforts to use the OZ incentives for what they were intended to do . Our hope is that this award will draw more investors to place their capital gains in Bronzeville , and specifically Eagle OZ . Our marketing is focused on the $ 10 billion catalytic growth and 55K new jobs happening here , as a means to draw investors , as it ' s a great
HOW WOULD YOU DESCRIBE YOUR COMPANY ?
We are a local team that has been in the business of developing affordable housing in Chicago for many years . When the OZ came to our backyard we jumped at the opportunity to use these unprecedented tax incentives to drive much needed private capital into our home market . Our main office is located just south of Bronzeville with our team of 15 local people managing Eagle OZ construction and operations . We are a boutique OZ fund focused on this one small submarket of Chicago .
WHAT DO YOU HOPE TO ACHIEVE WITH YOUR PROJECT ?
• Direct private capital into the revitalization of Chicago ' s Historic Bronzeville stimulating more positive change by creating jobs and converting vacant infill land into stable and affordable living space to cater to the influx of people moving here .
• Above-market financial upside with direct exposure to the
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