ARLINGTON, Va.--(BUSINESS WIRE)--EJF Capital LLC (“EJF”) and Holland Partner Group (“HPG”) today announced the development of a mixed-use project in downtown Vancouver, Washington. The project, known as Block 10 (the “Project”), is situated on approximately one-acre in an area certified as an “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA offers investors tax benefits to invest into Opportunity Zones with the aim of spurring economic growth in lower income areas.
The Project boasts 110 multi-family units, 79,000 gross square feet of office space on top of a podium deck with roughly 10,100 square feet of retail and 113 parking spaces. 20% of the multi-family units will be set aside as workforce housing. Additionally, Block 10 will include a robust amenity package shared between the multi-family and office tenants, including a fitness center, co-working space, bike room, and amenity deck on top of the podium deck on the third level.
Holland Construction, HPG’s construction division, expects to break ground in July 2020 and plans to complete the Project in the Spring of 2022. The Project is estimated to create hundreds of construction jobs. Bank of the West is providing construction financing.
A Prized Location
“Block 10 is a spectacular project, situated in the heart of downtown Vancouver on one of the city’s last remaining undeveloped blocks,” said EJF Co-CEO, Neal Wilson. “It is a prized location that is within walking distance of an array of amenities including numerous restaurants and bars, retail, entertainment and offices. We are pleased to partner with HPG, one of the developers with the most units under construction on the West Coast.”
“We are thrilled to have collaborated with the City of Vancouver and be partnering with EJF to make this dream become a reality,” said Clyde Holland, HPG’s CEO and Chairman. “Block 10 has sat vacant for too long, but soon it will become part of a vibrant hub of activity. We see so much potential and are proud to call it our new headquarters.”
A Hidden Gem
Asheel Shah, EJF’s Senior Managing Director and Head of Real Estate Development, called Block 10 a “hidden gem.”
“It will be the ideal place to live, work, and relax with its convenient location to Esther Short Park and the scenic Columbia River Renaissance Trail. It is located near major highways, I-5 and I-205 and just minutes from downtown Portland. The trip to Portland International Airport from Block 10 is easier than traveling from downtown Portland,” Shah said.
Market Strengths
Downtown Vancouver is experiencing substantial in apartment and condo development. HPG is close to completing a fourth tower – a 118-unit multi-family development with 2,200 square feet of space for restaurants or retail space and several ground-floor loft and live-and- work units – at Vancouvercenter, a mixed-use project. In addition, downtown Vancouver has an estimated 19 apartment buildings and condos that are either being planned or in the construction phase totaling 2,029 units. Vancouver’s population is growing and since the state of Washington has neither personal nor business income tax, companies are relocating to the city, according to information published by the Columbia River Economic Development Council.
Separately, there is more investment along the Columbia River, including a $1.5 billion waterfront revitalization. Also, the old Boise Cascade facility, which at one time was a sawmill and manufactured pulp and paper products, is undergoing a transformation.
“Downtown Vancouver is a city on the rise,” Wilson concluded. “We look forward to the groundbreaking and to partnering with HPG on a project that will have a positive impact on the downtown area and local community.”
About EJF Capital
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of March 31, 2020, EJF manages approximately $6.3 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its strategy to invest in Opportunity Zones.
EJF formed the EJF OpZone Fund I LP (the “Fund”) to take advantage of certain benefits provided by the TCJA. Benefits to U.S. taxable investors include the ability for investors to (1) defer the recognition of recent capital gains for federal income tax purposes until 2026 (treatment of capital gains varies by state), (2) reduce the amount of capital gains recognized in 2026 by 10% (for investors investing by 2021), and (3) eliminate any federal capital gains tax generated from investments in the Fund (for investors in the Fund at least ten years). As of June 30, 2020, the Fund had approximately $197 million in cumulative subscriptions and has closed on seven investments, including Block 10, comprised of four multi-family projects, one industrial logistics park, one mixed use project and one hotel project. If you would like more information on the Fund, please visit https://ejfopzone.com or contact EJF Investor Relations at investorrelations@ejfcap.com.
About Holland Partner Group
Holland Partner Group is a fully-integrated real estate investment company with two decades of experience and more than 800 team members. Recognized as the most consistent and reliable delivery mechanism in the real estate industry, HPG’s vertically integrated platform consists of five operating companies with expertise in development, construction, acquisition, redevelopment, and property management. Maintaining an unwavering focus on the most exceptional markets and properties, HPG has demonstrated success time and time again on projects in the most high-growth Western U.S. markets including Seattle, Portland, Los Angeles, Denver, San Diego, and the San Francisco Bay Area.