Tapping Opportunity Zones, Social Impact Investor SoLa Raises Its Biggest Fund
Monday, June 3, 2019
By Anne Field
Martin Muoto and Opportunity Zones are a perfect match.
Muoto created SoLa Impact Fund in 2012, aimed at investing in properties in economically distressed areas of South Los Angeles. So he was perfectly positioned to leverage Opportunity Zone legislation. To that end, he recently raised his third and largest fund.
His strategy from the start: Earn good returns, while targeting “really tough neighborhoods”, often with properties plagued by many vacancies and a lot of deferred maintenance, renovate them and create decent, affordable housing.
“We need to make good returns for our investors and also ensure our tenants lives are improving,” he says. About two-thirds of his tenants receive government subsidies of some sort. Muoto generally finds them though about 25 nonprofits and government agencies that work with disadvantaged populations.
Photo courtesy of GotCredit.