Phoenix-based equity firm Virtua Partners has launched a fund to invest in properties within the designated Opportunity Zones created through the Republican tax bill. Virtua is targeting a $200M goal for the fund, called Virtua Opportunity Zone Fund I.

This is the first fund of its kind, and investment strategies will be centered on multifamily and single-family rentals in what Virtua calls "high-growth Sun Belt markets," specifically noting Austin, Phoenix, Atlanta, Dallas, San Antonio and Orlando for their desirable investment opportunities.

The new tax law allows each state's governor to designate certain regions as Opportunity Zones, incentivizing investors to reinvest capital gains into the distressed areas. Investment within these designated areas qualifies for a sizable tax break that can be deferred for years if the property is held long term, and can be erased entirely from appreciation gained on investments.