Riaz Capital - ABD Ozone Fund

ABD OZONE FUND

The Riaz Capital development strategy offers substantial and sustainable returns to long-term investors. With dozens of workforce-housing projects in the pipeline for Bay Area Opportunity Zones, we created the ABD Ozone Fund to serve the growing nationwide group of accredited investors who are drawn to what our housing product offers.

Our opportunity zone compliant fund is capped at $100 million. We project 16% net IRR based on a combination of extreme high demand for our product and investor value creation. Our strategic approach is detailed below.

Product Demand

The San Francisco Bay Area faces a substantial housing shortfall for single-income households earning $40,000- $120,000 annually. Currently, there are more than 900,000 Bay Area professionals in this salary demographic. Since the year 2000, only 22,000 units have been built for our target market, resulting in a shortfall of 408,000 units. At the current rate of development, Oakland will not close the gap until beyond year 2500.

Riaz Capital has designed solutions that will provide housing to this group of renters while maximizing returns for our investors. We already have more than 1200 units in various stages of planning and construction. These units are affordable to our target demographic – including police, firefighters, nurses and teachers – because they focus solely on what this group values: price, comfort, convenience and community.

Value Creation Principles

So how does this level of affordability also bring substantial returns to investors?

Riaz Capital is unique in its ability to address a societal need – workforce housing that is affordable – while also offering investors steady profits for the duration of the 10-year investment horizon required by the Opportunity Zone legislation.

Here’s how we do it:

• Fast Deployment Cycle: We go from acquisition to stabilization in 24 months

• Hidden Density: ABD properties have a higher occupant dwelling ratio

• Efficient Building: Our designs eliminate parking, elevation and unnecessary amenities

• Reduced Fees: ABD projects reduce the costs of municipal, utility and permit fees

• Transit-Oriented: Proximity to mass transit offer regulatory and tax relief

Downturn Protection

ABD Ozone Fund investments are also defensible during an economic downturn. With so much economic uncertainty in the marketplace, investors gain the peace of mind in knowing that Bay Area housing is safe even in the worst-case-scenario. History shows us that:

• Bay Area rents have never dropped more than 18% in a downturn

• Riaz Capital’s workforce units have never dropped more than 4% in a downturn

• Rents could drop up to 30% without disrupting debt payment

Hear from our ABD Ozone Fund Investors

Forward-Looking Statements

The financial projections contained herein have not been independently reviewed or analyzed. For this purpose, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements.  Such “forward-looking” statements are based on various assumptions of Riaz Capital, which assumptions may prove to be incorrect. Accordingly, there can be no assurance that such projections, assumptions and statements will accurately predict future events or actual performance. Any projections of cash flow and all other materials or documents supplied by Riaz Capital should be considered speculative and are qualified in their entirety by the assumptions used to prepare such projections.  Accredited investors are advised to consult with their own independent tax and business advisors concerning the validity and reasonableness of the factual, accounting and tax assumptions. No representations or warranties whatsoever are made by Riaz Capital, its affiliates or any other person or entity as to the future profitability of the Interests or the results of making an investment in the Interests. Riaz Capital undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.