EAGLE OZ PROJECT TAKES HOME AMERICA ’ S MOST IMPACTFUL PROJECT AWARD
115 story to justify parking money for 10 years with the added OZ benefits , offering the compelling promise of great financial and social upside , and enabling Eagle OZ to continue to actualize our agenda of job creation and housing quality improvement .
WHAT ADVICE WOULD YOU LIKE TO GIVE OTHER COMPANIES COMPETING IN UPCOMING COMPETITIONS ?
You need to be able to measure and communicate the impact made by your company . You need to be passionate about this impact and about your project , and be able to communicate that you are setting positive change in motion .
HOW MUCH HAVE YOU RAISED TO DATE IN YOUR OZ FUND ? HOW IS DEAL FLOW LOOKING SO FAR THIS YEAR ?
We have raised $ 5 million through our personal network . In an effort to reach the larger OZ investing public and complete our $ 20 million raise for Eagle OZ Fund II , we are about to launch a marketing campaign to RIAs . We have commissioned a third-party due diligence report to provide assurances to new investors who have yet to invest with us . We have also engaged a registered broker to assist with the capital raise . There seems to be ample OZ capital out there . Hopefully these efforts will help us reach full subscription by the end of the year and allow us to build out Eagle OZ ' s business plan .
HOW DID THE PANDEMIC IMPACT YOUR BUSINESS STRATEGY ?
Our business plan has only strengthened with the pandemic as demand for our rental product has increased . Eagle OZ buildings are near Lake Michigan and parks . We also build spacious low rise walk up units that feel like you are living in a house . These features all gained more appeal in the past year . The only real challenge that surfaced during the pandemic for us was slow down with building permits and construction finance . We also need to deal with higher construction material costs .
WHAT ARE SOME CURRENT TRENDS YOU ARE SEEING IN THE OZ MARKET ?
I ' m not really exposed to the OZ market at large . We are very focused on our own business and submarket . We don ' t see other OZ investors in Bronzeville .. There are no large tracts of land for big projects which I think is a deterrent to other OZ developers . We overcome this obstacle , achieve scale and create a compelling Opportunity Zone project by assembling many smaller infill parcels into a single Fund , allowing OZ investors to gain exposure to the $ 10B catalytic growth happening around these OZ tracts - exposure that otherwise would not be available to the OZ investor , or any investors for that fact .
WHAT DO YOU THINK OPPORTUNITY ZONES CAN ACCOMPLISH FOR DISTRESSED AREAS ?
Incentivize and direct private capital into these distressed areas to push revitalization forward with a domino effect leading to economic growth and betterment of the distressed area , drawing even more private capital which would have otherwise gone elsewhere . OZ incentives can also make these opportunities more economically viable . Awareness of the OZ impact shines a bigger light on the importance of social impact for those OZ investors who otherwise might not have considered impact as a criterion for investment .
WHAT DO YOU THINK WE CAN EXPECT FROM THE NEW BIDEN ADMINISTRATION WHEN IT COMES TO OZS ?
We are hoping that the Biden administration will extend the tax deferral period beyond 2026 . Perhaps a trailing date tied to the date of OZ investment , instead of a hard date .
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