Fund I

---

Size: $10m

Location: South Central Los Angeles

Minimum Investment: $50k

Our vision is to utilize the tax benefits of the Qualified Opportunity Zone legislation to build multifamily units in low income areas to provide much needed housing in Los Angeles. This approach will maximize both returns for investors and social and economic good for the city. 

According to the California Statewide Housing Assessment1.8 million new housing units will need to be constructed by 2025 to meet the rising demand in California. Current development rates fall short of this by 125% annually: 180,000 units are needed to meet demand and the state is currently producing less than 80,000. The largest demand is in Southern California, where 61% of the Californian population lives. 

There is also a need for development in urban centers rather than continued sprawl. Sprawl decreases quality of life and reduces opportunities for future generations in terms of job opportunities and education. Los Angeles has also effectively reached the natural limits of expansion due to the mountains and ocean that surround it. For this reason urban in-fill is the most advantageous option for new housing units.

–The bulk of the fund is aimed at providing low-income and permanent supportive housing in Los Angeles. Using HUD housing through Measure H funding we are able to provide favorable returns while doing an immense social good. These projects should also satisfy requirements under the Community Reinvestment Act.

–Zephyr’s primary focus is on small projects that are able to be completed within 6-9 months of purchasing the land. This ensures that we will comfortably meet the ‘significant improvement’ test necessary for the QOZ tax benefits while also enabling these projects to generate income in a shorter time frame.