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Sortis Closes On $59.8M Opportunity Zone Project

PORTLAND, Ore. – Aug. 28, 2019


Sortis Holdings Inc. (SOHI), a Portland, Oregon-based private equity firm, closed on equity funding for Tukwila Village Phase II, a mixed income senior living development in Tukwila, Washington. Sortis invested capital from its $100 million Sortis Opportunity Zone Fund alongside project sponsor Bryan Park, a Puyallup-based developer who has developed, owns and operates more than 5,000 senior living apartments in Washington. The completed project will be operated by Sustainable Housing for Ageless Generations, or SHAG, a 501(c)(3) nonprofit.

“By 2050, the population of individuals who are 65 and older in the U.S. is projected to double, yet rising rents and lack of supply have reduced the availability of affordable, high-quality housing in desirable locations for this population,” said Paul Brenneke, Sortis founder. “We believe delivering a high-quality project with attractive investment returns while simultaneously providing an affordable housing option to low-income seniors is a win-win.”

The two-phase project is situated on approximately 5.76 acres. Phase II comprises 204 apartment units exclusively for seniors, six live/work units, approximately 8,300 square feet of commercial/retail space and structured parking. Once Phase II is complete in late 2020, the combined project will be the third-largest senior living development in Washington, encompassing 403 apartment units exclusively for seniors, six live/work units, approximately 32,000 square feet of commercial/retail space, over 400 garage and surface parking stalls, a community center, a central outdoor plaza and a new King County public library. Twenty percent of the units at Tukwila Village will be set aside for seniors making up to 50% of the area median income. The project is able to deliver attractive investment returns through the use of both Low Income Housing Tax Credits and tax exempt bond financing from the Washington State Housing Financing Commission.

The $100 million Sortis Opportunity Zone Fund was created to take advantage of provisions in the 2017 Tax Cuts and Jobs Act that enable accredited investors to benefit from one of the most advantageous capital gains tax reduction programs in a generation. The legislation created opportunity zone funds as a new investment vehicle designed to incentivize investment in targeted communities. Investors can roll over recently realized capital gains into these funds, allowing for the deferment and reduction of their capital gains taxes and the elimination of capital gains taxes on any future profits from the investments in the opportunity zone funds. The Sortis Opportunity Zone Fund is focused on the Northwest, following the footprint of the company’s successful lending fund, the Sortis Income Fund.


Sortis is a leading private investment firm specializing in alternative asset classes with a focus on real estate, both as a lender and direct investor. With its roots as a former bank holding company, Sortis has evolved into a diversified firm that both lends and opportunistically invests in the Western U.S. with a focus on Pacific Northwest. Sortis manages the $100M Sortis Opportunity Zone Fund, $100M Sortis Income Fund and the $10M Sortis Growth Venture Fund. Operating under the principles of sustainability, client focus, integrity, hard work and creativity, Sortis provides its accredited investors with expertly managed alternate investment strategies. Further information is available at