April 4, 2019
Decennial Group Launches Targeted $1 Billion Opportunity Zones Platform
Leading Real Estate Developers Scott Goodman (Farpoint) and Bob Clark (Clayco) Join Forces to Establish Integrated Developer-Builder Opportunity Zones Investment Platform to Revitalize the American Heartland
CHICAGO – Scott Goodman, Founding Principal of Farpoint Development, Bob Clark, Founder and CEO of Clayco, and Shawn Clark, President of CRG, Clayco’s real estate development and investment company, announced the launch of Decennial Group today, a national Opportunity Zones (OZ) real estate and energy investment and development platform, based in Chicago. The joint venture is targeting investment of $1 billion in development projects and is designed to leverage the OZ tax incentives created through the 2017 tax reform legislation, just as the IRS prepares to finalize the program’s regulatory framework. Decennial’s vertically integrated developer-builder platform is positioned as an early leader in this new marketplace, which is generating interest around the country for its potential to positively transform economically distressed communities.
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 and 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 OZ that encompasses over 100 acres near Chicago’s Convention Center on the South Side.
“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.”
A vital component and differentiator from other OZ 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 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 & development facilities, and multi-family real estate projects valued at more than $11 billion. CRG has offices in Chicago, St. Louis, Columbus, Philadelphia, Atlanta, and Newport Beach.
“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 OZ funds and transactions, as well as his relationships in the OZ 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.
About Decennial Group
The Decennial Group is an integrated developer-builder investment platform, comprised of a unique team of best-in-class developers, real estate and energy investors, builders, and regulatory experts. Among the first bespoke investment platforms in the Opportunity Zones marketplace, the Decennial Group is focused on scalable, long-term investments that can revitalize neighborhoods throughout the country, with an emphasis on the American Heartland. For more information, please visit the Decennial Group at www.decennialgroup.com.
About Farpoint Development
Farpoint is a Chicago-based real estate development company with extensive experience in managing large scale development and redevelopment projects. With more than 30 years of experience, Farpoint’s Principals have created some of Chicago’s most iconic and innovative commercial office and mixed-use projects, totaling more than five million square feet valued in excess of $1 billion. From ground-up development to adaptive reuse and historic rehabilitation, Farpoint strives to use its diverse experience in all facets of the development process to unlock hidden potential in every opportunity. For more information, visit Farpoint Development at www.farpointdev.com.
CRG is a privately held real estate development firm that has developed more than 8,000 acres of land and delivered over 187 million square feet of commercial, industrial, institutional, and multifamily assets exceeding $11 billion in value. CRG, headquartered in St. Louis, leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Newport Beach, CA and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of their industrial brand, The Cubes, and their multifamily brand, chapter. For more information, visit CRG’s website at www.realcrg.com.
About 11 Million Acres
11 Million Acres (11MM) harnesses the nation’s leading energy infrastructure & technology, engineering best-practices, world-class integrators, and capital to deliver a revolutionary energy and real estate development platform. Commercial property owners and real estate developers across the nation choose 11MM to increase operating income and access our hyper-efficient capital for their new construction and redevelopment projects. For more information, visit 11 Million Acres at www.11millionacres.com.
Clayco is a full-service, turnkey real estate development, master planning, architecture, engineering and construction firm that safely delivers clients across North America the highest quality solutions on time, on budget, and above and beyond expectations. With $2.6 billion in revenue for 2018, Clayco specializes in the "art and science of building," providing fast track, efficient solutions for industrial, commercial, institutional, and residential related building projects. For more information, please visit www.claycorp.com.
This press release does not constitute nor does it form part of an offer to sell or purchase, or the solicitation of an offer to sell or purchase, any securities or any of the businesses or assets described herein or an offer or recommendation to enter into any transaction described herein nor does this press release constitute an offer or commitment to provide, arrange or underwrite any financing. Any such offer or solicitation shall be made only pursuant to a confidential private placement memorandum, which describes risks related to an investment therein. The private placement memorandum, including the risk factors and potential conflicts of interest described therein, should be read carefully prior to investment. No offer to purchase interests will be made or accepted prior to receipt by the offeree of the private placement memorandum and the relevant subscription documents, all of which must be read in their entirety. Any investment could involve important legal, financial, fiscal and tax consequences and investment risks, which should be discussed with your professional advisors. You are responsible for making your own independent investigation and appraisal of the risks, benefits, appropriateness and suitability of any transaction or matter contemplated by this document. Investments made by Decennial are highly speculative and involve a high degree of risk and could result in the loss of all or a substantial portion of the amount invested. There can be no assurance that the strategy described herein will meet its objectives generally, or avoid losses.