OZ Pitch Day - July 20, 2023
Pinnacle Partners’ Spokane OZ Projects Move Forward
Opportunity Zone investment firm Pinnacle Partners is partnering with Spectrum Development Solutions on a 160-unit apartment building in Spokane’s University District. The four-story building will have a footprint of more than 100,000 square feet and feature a mix of studios, one-bedroom, two-bedroom, and three-bedroom units.
Amenities will include a basketball court, fitness center, and clubhouse. The development is located along the Spokane River in close proximity to Gonzaga University.
Construction is slated to start in the spring, with a summer 2024 completion date.
Pinnacle Partners is providing financing for the project, with construction costs estimated at $25 million. Pinnacle is currently raising $100 million in OZ equity for its eighth Qualified Opportunity Fund, which will invest in approximately four multifamily projects.
“We’re pleased to be part of a project that addresses Spokane’s incredible demand for housing that’s attainable to both students and the urban-workforce community,” said Leo Backer, co-founder and managing partner at Pinnacle Partners. “It’s another example of how Opportunity Zones help support the housing needs close to urban centers like Spokane.”
Not only is the project eligible to receive Opportunity Zone funding, but it is also located in Spokane’s Multifamily Tax Exemption Zone. Together, the two programs pack a powerful punch, delivering mutually beneficial economic incentives for the City and the real estate developer and their investors.
“The fact that it’s within an Opportunity Zone as well as a tax-exemption zone really made the economics more viable in that location,” said Jake McKinstry, principal of Spectrum Development Solutions LLC.
Spokane is home to 10 of the 139 Opportunity Zones in Washington state.