RevOZ Delivers on Positive Social Impact in San Bernardino, CA

In 2018, local developer Sudweeks Development and Investment Co. (SDIC) was selected by San Bernardino County to build a new medical office building for the county’s Children’s Department of Behavioral Health (DBH). The County agreed to lease the building for 15 years if SDIC financed and constructed the property. As SDIC began to engage equity partners, they found that property’s location in a highly distressed community made it difficult to secure financing. Even though the building had been pre-leased by an S&P rated AA+ tenant (the County), potential partners could not overcome perceptions of the investment risk due to neighborhood conditions. Fortunately, RevOZ Capital (RevOZ) saw opportunity where others couldn’t. They agreed to partner with the County on the project.

“The value of bringing quality development to our communities underscores the importance of the Opportunity Zone program. Good things can happen when the public and private sector work together to bring greater benefit to our economy, much needed services and critical job opportunities for local residents, ” said Veronica Kelley, San Bernardino County Department of Behavioral Health Director.

The 11,325 square-foot, build-to-suit office project will further the ability for DBH to provide mental wellness care to some of the most vulnerable and underserved members of the community. By working in partnership with RevOZ and SDIC, San Bernardino County did not need to use public financing for the development of its new medical office space. Securing a long-term lease from a credit-worthy tenant prior to construction reduced SDIC and RevOZ exposure to risk, and RevOZ expects the project will produce attractive risk adjusted returns as well as a compelling positive social impact for the community.

RevOZ will replicate its success in San Bernardino to execute on its Social Impact Initiative. In early 2021, the RevOZ announced it aims to invest into $1 billion of OZ projects in areas that have been historically overlooked by investors and hit hard by the COVID-19 pandemic. RevOZ’s new Social Impact Council will advise on efforts to develop new tools and methodologies for community engagement, impact assessment, and fund transparency and reporting.