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18 Jun 2019

Arcis Capital Spins Off Real Estate Investment Business


Global private equity investment management firm Arcis Capital Partners LLC, based in New York, announces the spin-off of its real estate investment business into Arcis Real Estate Capital LLC. ArcisRE will focus solely on real estate investment management and advisory in the U.S. ArcisRE is born out of ArcisCap’s successful growth within the real estate sector.

Mohi Monem will lead ArcisRE as Managing Partner and Steven W Sorensen will join him as a Partner. Under Mohi’s leadership, ArcisRE will be focused on investing in asset types in the U.S. that are operationally driven, such as student housing, multi-family, senior living, hospitality, and self storage.

“We look to partner with like-minded and experienced operators and sponsors on proprietary deal flow, as we are focused on opportunistic investments and special mandates on behalf of our capital partners,” said Monem. “We will also be investing through our Opportunity Zone platform, where we are seeking strategic partnerships with strong developers and sponsors in the student housing, multi-family, and hospitality sectors. We are looking to capitalize development and value-add projects within qualified Opportunity Zones and to generate long-term risk-adjusted returns for our investors.”

Investing in any of the 8,700 federally designated Opportunity Zones for seven years or more would eliminate any federal taxes due on initial capital gains. With more than $2 trillion in unrealized gains sitting on the ledgers of investors and corporations, according to the Economic Innovation Group, the Opportunity Zone program could prove to be a windfall for both investors and low-income census tract communities. Having been involved in Opportunity Zones since early 2018, ArcisRE has built a network of capital relationships looking to invest in Opportunity Zone deals within its specified sectors of focus.

Afzal (“Al”) M. Tarar, Chairman and Managing Partner of ArcisCap will act as Executive Chairman of ArcisRE. Tarar stated, “We are proud of the foundation that we have built for the real estate business and we feel that this is the right time for it to have its own identity. We are excited about growing our assets under management with the help of our dedicated and industry-focused leadership.”

Arcis Real Estate Capital LLC is an investment advisory, investment banking, and management firm specializing in real estate. ArcisRE focuses on uncovering investment opportunities that provide superior risk-adjusted returns. The partners at ArcisRE have broad experience in advising, investing, and asset-managing hotel, multifamily, and retail properties in the United States.

ArcisRE has recently set up an Opportunity Zone investment platform to programmatically invest in qualified development and value-add deals. ArcisRE’s initial emphasis is on the student housing, multifamily, and hospitality sectors – with a target of raising up to $150 million for these in 2019.

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