CRE N Illinois

New venture, Decennial Group, looking to raise $1 billion for opportunity zones

New venture, Decennial Group, looking to raise 1 billion for opportunity zo,ph01

Scott Goodman, founding principal of Farpoint Development, Bob Clark, founder and CEO of Clayco, and Shawn Clark, president of CRG, have launched Decennial Group. The Chicago-based real estate and energy investment and development joint venture is targeting $1 billion in Opportunity Zone investments.

Opportunity Zones, created through the 2017 tax reform legislation, trade capital gains tax incentives for economic development in distressed communities. Decennial’s vertically integrated, developer-builder platform is positioned as an early leader in this new marketplace, just as the IRS prepares to finalize the program’s regulatory framework.

“Revitalizing neighborhoods and generating strong returns for investors has been at the core of my work for decades, and those same principles are at the heart of the Opportunity Zones program and its incentives,” said Goodman. “Decennial will make smart, long-term investments throughout the country, but we will begin by capitalizing on deep relationships and an already strong pipeline of deals in the Heartland, where we have unparalleled investing experience.”

Decennial Group derived its name from its 10-year approach to investment and development, which positions neighborhoods for transformative, long-term, and inclusive growth. The real estate investment and development platform focuses on commercial, industrial, multifamily and energy projects located in Opportunity Zones, particularly throughout America’s heartland.

The team behind Decennial has unique real estate and energy investment, development, construction and regulatory expertise. Goodman previously founded Sterling Bay, one of Chicago’s leading real estate investment and development firms that spearheaded the revitalization of the West Side of Chicago. He is the lead developer for Burnham Lakefront, located in a recently designated Opportunity Zone that encompasses over 100 acres near Chicago’s McCormick Place convention center.

A vital component and differentiator from other Opportunity Zone funds is Decennial’s renewable energy strategy. This strategy is led by David Pavlik, co-founder and principal of 11 Million Acres, which has structured over $2 billion in renewable energy and infrastructure projects. According to Pavlik, “our capital structure enables us to take advantage of renewable energy financing and tax credits, ensuring our assets are designed for the next generation energy economy.”

The partnership with Clayco and CRG—Clayco’s real estate development and investment company—adds a unique feature to Decennial’s investment and development capabilities, leveraging CRG’s experience in the development of more than 8,000 acres of land and over 187 million square feet of industrial warehouse, corporate headquarters, research and development facilities and multi-family real estate projects valued at more than $11 billion.

“Few Opportunity Zone investment platforms have the ability to manage all aspects of the investment and development life cycle from deploying private equity capital to underwriting strong deals to developing and managing the projects in these communities. CRG provides both development and site selection expertise as well as a full-service, design-build group able to act quickly on great OZ opportunities around the country,” said Bob Clark. “We all have a deep commitment to enhancing and growing communities. Our partnership with the Decennial Group is a perfect opportunity to create jobs and deliver a great product.”

Steve Glickman, founder and CEO of Develop LLC in Washington, DC, will serve as senior advisor to the management team. Glickman is also the co-founder and former CEO of the Economic Innovation Group, the architect of the Opportunity Zones program. Glickman’s expertise structuring Opportunity Zone funds and transactions, as well as his relationships in the Opportunity Zone marketplace, provide Decennial an important advantage in navigating the complicated rules and regulations to maximize the program’s tax incentives.

“Decennial is executing exactly the type of place-based impact strategy for long-term value investing envisioned by Congress when it created this bipartisan program, and we have the expertise to make profitable, inclusive investments that will have a transformative positive impact on communities all over the country,” said Glickman.

Decennial’s team also includes Dan Gilman in New York, a private equity veteran who heads investments for Decennial’s funds, as well as John Krappman in Los Angeles, a seasoned real estate investor who heads underwriting and acquisitions.