Allagash Opportunity Zone CRE Fund I

The Allagash Opportunity Zone CRE Fund I is a highly focused multi-property qualified opportunity fund (“QOF”) that provides investors an opportunity to increase their after-tax wealth through 14%-16% net returns that capitalize on the supply-demand imbalance in workforce housing. The Fund draws upon Allagash Founders’ deep expertise investing into low- and moderate-income (“LMI”) communities to provide quality affordable housing to working-class community members by opportunistically purchasing, intelligently renovating and improving, and then efficiently managing multifamily rental properties. The Fund purchases underperforming properties within the economically thriving mid-Atlantic states at significantly discounted prices to ground-up development costs, even after the costs of the renovation. As a result, the Fund can rent quality apartments that are affordable to the existing members of these working-class communities unable to afford housing in their nearby urban centers while still enabling investors to generate the projected mid-teens Fund net return.

The workforce housing sector is experiencing a crisis resulting from almost 50 years of neglect by capital providers. Housing demand by working-class community members continues to grow throughout the United States, especially in areas experiencing above-trend economic and demographic growth like the mid-Atlantic region. Simultaneously, workforce housing is shrinking due to aging housing stock and often neglectful ownership. For every new unit that comes to market, two units are being lost to age and neglect. Housing experts have focused on large-scale renovation as the best way to begin to correct this growing supply-demand imbalance because the combined purchase and renovation cost basis is still much lower than the cost of developing building new multifamily housing from the ground up. Against this backdrop, Allagash Opportunity Zone Partners (“AOZP”) developed the Allagash Opportunity Zone CRE Fund I.

AOZP designed and manages the Fund to preserve investor capital by investing into the commercial real estate (“CRE”) sector which outperformed most other CRE sectors and other asset classes generally during the Great Recession. Investor risk should also be reduced because workforce multifamily housing properties are currently priced at a significant discount to commercial real estate properties located in higher income areas or in larger metropolitan areas. Additionally, by owning the post-renovation properties at a significantly discounted cost-basis to newly built properties, the Fund seeks to reduce the prospective risk associated with building/renovation by projecting full occupancy from the existing members of the working-class communities in which the properties are located. The Fund does not rely upon potential gentrification to drive returns. Additionally, the Fund projects to be able to distribute cash to investors equal to investors’ full invested amount within 6 years of investment, thereby dramatically reducing investors’ risk. Finally, as opposed to single-property QOFs, the Allagash Opportunity Zone CRE Fund I has numerous potential exit strategies from the preferred REIT IPO to an UpREITsale, portfolio private sale, individual asset sales, or some combination in order to maximize total return for investors.

Allagash Opportunity Zone Partners (Allagash) was founded specifically to find compelling real estate investment opportunities so that investors could generate compelling returns while fully capitalizing on the tax benefits offered by the Opportunity Zone program. Each of Allagash's five senior partners have over 30 years of experience in Commercial Real Estate, Investment Management, and Financial Markets. We bring specific expertise in Strategy and Investment Identification, Property Purchasing and Strategic Planning, Property Renovation and Management, and Fund Management. The partners have known each other for years and are unified by the following shared set of beliefs:

1) Compelling commercial real estate opportunities which can provide investors with outsized returns do exist, but primarily away from trophy properties and the largest primary markets.

2) Investment capital belongs to our clients — we don't gamble; we invest.

3) Creating value starts with a compelling investment thesis.

4) In order to maximize investment returns, a solid investment process must be designed and implemented.

5) Because investment reward is always associated with risk, we must continuously work to enumerate and understand risk at both the investment and portfolio level.

6) Exit strategy must be considered from the development of the investment thesis until the assets are finally sold.

7) The fund structure should match both the investment thesis and process as well as the characteristics and goals of the investors.

8) People and relationships matter.