The Future Of Multifamily Real Estate & Opportunity Zones, With Altes Capital

Multifamily real estate development has become the dominant strategy in Opportunity Zones, and with a nationwide housing shortage, the demand for new projects is stronger than ever.

Jeff Tompkins and Joseph Julian of Altes Capital join the show to discuss their approach to OZ investing, the role of workforce housing, and why now may be the right time for investors to take advantage of Opportunity Zone incentives.

Guests: Jeff Tompkins & Joseph Julian

About The Opportunity Zones Podcast

Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.

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Episode Summary

In this episode of The Opportunity Zones Podcast, Jimmy Atkinson welcomes Jeff Tompkins, managing director of investor relations at Altes Capital, and Joseph Julian, senior portfolio manager of real estate. The discussion explores Altes Capital’s approach to Opportunity Zone investing, the future of multifamily real estate, and why now may be a compelling time to invest in OZ projects. They also highlight specific projects in Altes Capital’s Opportunity Zone funds, including developments in Tempe, Arizona, and Washington, DC.

The Background and Strategy of Altes Capital

Joseph Julian shares the history of Altes Capital, which he co-founded alongside Brian Altenberg after working in institutional capital markets at firms such as Man Group, Bank of America Merrill Lynch, and Oppenheimer. The firm initially started as a real estate investment group managing properties for a large single-family office before evolving into a national real estate development and investment firm.

Altes Capital has launched two Opportunity Zone funds, with Fund III planned for later this year. The firm focuses on multifamily and mixed-use developments in high-growth areas, with past projects ranging from $50 million to $150 million in markets such as Washington, DC, Charlotte, Austin, Tucson, and Orange County. Julian explains that the Opportunity Zone structure aligns well with their long-term investment philosophy, as they prefer to develop and hold properties rather than flip assets for short-term gains.

The Importance of Opportunity Zones in Multifamily Development

The conversation shifts to why multifamily development is such a dominant investment strategy within Opportunity Zones. Opportunity Zone incentives encourage new construction rather than acquisitions, making them well suited for long-term real estate development. Julian highlights that the program provides a tax-efficient way for investors with capital gains to optimize their net returns, reinforcing the importance of tax efficiency in real estate investing.

Jeff Tompkins adds that Altes Capital differentiates itself by focusing on three key areas: sponsor selection, geographic targeting, and property type.

Sponsor selection – Altes partners with established developers with billion-dollar balance sheets and strong track records in managing financial and operational risks.
Geographic focus – The firm targets areas with high housing demand and constrained supply, citing national housing shortages projected by Zillow, Freddie Mac, and the National Multifamily Housing Council.
Property type – Altes prioritizes walkable, amenity-rich developments with environmental and community benefits to attract long-term tenants.

Highlighting Notable Opportunity Zone Projects

Joseph Julian discusses several key projects from Altes Capital’s Opportunity Zone funds.

Culdesac Tempe, Arizona – A car-free residential development near Arizona State University designed for walkability and sustainability. Residents benefit from integrated mobility services, such as ride-sharing, electric bikes, and local retail access, all within a 17-acre site.
Washington, DC Net Zero Building – The largest net-zero carbon multifamily development in the United States, providing highly energy-efficient living spaces while being located near transit options and parkland along the river.
Camp North End, Charlotte – A large-scale mixed-use redevelopment, converting former industrial space into a vibrant, walkable community with residential, retail, and co-working spaces.

These projects reflect Altes Capital’s strategy of selecting developments with strong sustainability features, connectivity, and urban integration.

Workforce Housing as a Key Investment Theme

Julian highlights workforce housing as a significant focus for Altes Capital. They target markets with strong job growth and young professionals in need of high-quality, affordable rental housing. Many of their projects incorporate 10 to 12 percent affordable housing units to ensure inclusivity while maintaining long-term rental demand.

The firm also seeks locations where job centers are within a short commuting distance, reducing reliance on personal vehicles and creating more sustainable living environments.

The Role of Strong JV Partnerships in OZ Success

Altes Capital’s success relies on strong joint venture partnerships with experienced local developers. Julian describes their long-standing partnership with Redbrick, a Washington, DC-based developer specializing in Opportunity Zone projects. Redbrick is the largest landowner of OZ-designated land in DC and has a long track record of executing successful large-scale developments, including the revitalization of the Navy Yard and Bridge District.

When evaluating potential partners, Altes Capital looks for:

Deep local market knowledge
Strong relationships with contractors and government agencies
Transparency and hands-on project management
A proven history of selling stabilized assets to institutional investors

This strategic approach helps de-risk developments and ensure high execution quality.

What’s Next: Opportunity Zone Fund III

With the planned closing of its second Opportunity Zone fund, Altes Capital is preparing to launch Opportunity Zone Fund III. The new fund will continue focusing on high-growth locations while introducing some new market opportunities, such as:

Albuquerque, New Mexico – A build-for-rent single-family home community.
Clearfield, Utah – A workforce housing project near Salt Lake City.
Colorado Springs, Colorado – A multifamily development in a growing metro area.

Additionally, Fund III will expand on successful existing projects, such as future phases of Culdesac Tempe and new residential buildings at Camp North End in Charlotte.

Why Now Is a Strong Time for Opportunity Zone Investing

Jeff Tompkins explains why current market conditions make Opportunity Zone investing particularly attractive. He points to a projected five-million-home housing shortage in the U.S., creating strong rental demand for well-located multifamily projects. Volatility in capital markets is also driving investors toward more conservative, long-term real estate investments.

Tompkins also highlights the growing role of technology in real estate, particularly in Opportunity Zone developments. Innovations in smart home technology, property management automation, and artificial intelligence-driven rental pricing optimization are improving operational efficiency and tenant experiences.

Final Takeaways

Opportunity Zones remain a powerful tool for tax-efficient investing, particularly in long-term multifamily development.
Altes Capital focuses on high-growth markets, environmentally friendly developments, and strong partnerships with experienced local developers.
Workforce housing continues to be a major investment theme, addressing demand from young professionals in job-rich areas.
Altes is preparing to launch Opportunity Zone Fund III, expanding into new markets while continuing successful existing projects.
Current economic conditions, including housing shortages and capital market volatility, make Opportunity Zone investing a timely opportunity.

The Opportunity Zone landscape continues to evolve, and firms like Altes Capital are leveraging the program to create sustainable, high-quality multifamily developments in growing markets.