TOP 25 FUND MANAGERS / DEVELOPERS
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MICHAEL MCMAHON
RXR REALTY
Michael McMahon serves as EVP , tax director for RXR Realty , a position he has held for nearly 25 years . He is a NYS licensed CPA , with an MBA in taxation . As a member of the Real Estate Roundtable ’ s Opportunity Zone Working Group , he provided written comments and had in-person meetings with Treasury regarding the program , with many of the group ’ s comments incorporated into the final regulations . In his role as tax director , McMahon handles tax and investor relation matters for RXR ’ s first QOZ Fund , which in 2019 raised nearly $ 500M of equity , all of which has been successfully invested into several transformative projects throughout the New York tri-state area .
WHAT KIND OF TRENDS AND NEW INVESTMENT AREAS DO YOU THINK QOFS WILL FOCUS ON IN 2022 ?
To date , many QOFs have naturally focused on multifamily development in primary and top-tier secondary markets . Once that “ low-hanging fruit ” is gone , I think you ’ ll see more development in the remaining secondary and tertiary markets . I also believe that many people are trying to figure out ways to get around the NNN restrictions in Opportunity Zones , so I think you ’ ll begin to see industrial and other traditional NNN users go to a modified gross form of lease when leasing space in Opportunity Zones .
LEONARD O . MILLS
VERTE OPPORTUNITY FUND
The Verte OZ Funds are managed by Dr . Leonard Mills , who has over 30 years of experience in asset selection and portfolio management . He earned a B . S . in mathematics , a Ph . D . in economics and is a Chartered Financial Analyst ( CFA ). Mills spent over 15 years as Head of Portfolio Analytics and Research for Fannie Mae ’ s direct portfolio . Later , he was a principal at Unison Investment Management . He founded his own investment advisory firm in 2016 specializing in venture capital investing and fund management . His first fund , Verte Capital , focused on the cannabis industry and related technologies . The second fund is the Verte Opportunity Fund , which opened in 2020 , uniquely combining venture capital , sustainable investing and Opportunity Zone benefits .
WHAT KIND OF TRENDS AND NEW INVESTMENT AREAS DO YOU THINK QOFS WILL FOCUS ON IN 2022 ?
2022 will be another year of growth and expansion in the Opportunity Zone activity . The investor base will continue to broaden with smaller investors being willing and able to add OZ investments to their portfolios ; more public offerings of QOFs will be seen . As seen in 2021 , the growth rate of QOFs investing in OZ businesses will out-pace the growth rate of OZ real estate investing . I also see the range of OZ businesses continuing to expand by stage of development and across more industries .
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