WAYNE, Pa., Jan. 27, 2025 -- Argosy Real Estate Partners (Argosy), a private real estate investment manager focused on the lower middle market, today announced the findings of its Opportunity Zone Economic Impact Analysis.
Over the past five years, in partnership with its joint venture partners, Argosy has developed 22 properties located in Qualified Opportunity Zones. Argosy expects these projects to provide 3,430 new housing units, 440 new hotel rooms, 316,431 square feet of new industrial space, and 50,246 square feet of new retail space with a total project investment size of $1.4 billion.
Argosy's Opportunity Zone Economic Impact Analysis highlights the contributions of these projects to local and regional economies. By investing in these initiatives, Argosy's goal is to have a positive and long-lasting impact on local economies while providing attractive returns to investors.
Key highlights:
- $2.6 billion total estimated economic impact
- $1.1 billion in direct estimated economic impact from the development and operations of the projects
- $148.9 million of estimated annual recurring economic output from the ongoing operations of the projects
- 1,193 estimated permanent jobs created
- Approximately 10,000 temporary jobs created during the construction phases of the projects
- Recurring annual local and state tax revenue totaling an estimated $1.3 billion over the next 30 years
"Argosy's Opportunity Zone program has played a meaningful role in catalyzing investment in underserved areas nationwide," said David Butler, co-CEO and Managing Partner of Argosy Real Estate Partners. "The Argosy team is proud to deliver high-quality real estate projects that foster economic vitality, serve diverse community needs, and create enduring value for local economies nationwide."
Methodology
The economic impact figures presented in Argosy's Opportunity Zone Economic Impact Analysis were compiled in partnership with The Concord Group, an economic advisory firm. All figures are estimates based on the analysis. The calculation of economic impact figures used the RIMS II multipliersi to estimate the employment and economic output impacts of the projects by using the corresponding industry multiplier to calculate the direct, indirect, and induced effects of developing the project.
About Argosy Real Estate Partners
Argosy Real Estate Partners (Argosy) specializes in opportunistic, core plus and Opportunity Zone real estate investments in the lower middle market. Argosy, through a diversified allocator fund model, invests in multifamily, industrial, lodging, retail, for-sale residential land, and office opportunities throughout the United States. Argosy currently has approximately $3.8 billionii of gross value of real estate assets and uncommitted equity capital under management. Argosy currently manages ten commingled, fully discretionary real estate funds on behalf of institutional investors, family offices and high-net-worth individuals in the United States, Europe and Asia. Through its Argosy-Lionbridge Management (ALM) affiliate, Argosy also oversees a long-biased hedge fund strategy focused on public real estate securities. For more information, visit www.argosyrep.com.
i The Regional Input-Output Modeling System (RIMS II) multipliers provide a measure of the effects of local demand shocks on total gross output, value added, earnings, and employment. RIMS II multipliers were developed by the U.S. Bureau of Economic Analysis as a tool to help economists analyze the potential impacts of economic activities on regional economies. To estimate the economic impact of each project during the construction phase (construction impacts), the construction industry multiplier was multiplied by the construction cost of each product type to segment the employment and economic output. In order to measure the permanent employment and economic impacts of each project, the impacts from ongoing business operations after construction is complete were estimated.
ii Gross AUM includes $3.7 billion of gross assets where AREP holds controlling interests and $108.2 million of unfunded equity commitments as of Sept. 30, 2024.
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