Normandy Real Estate Partners LLC is raising $250 million for a fund that will invest in low-income areas classified as opportunity zones under U.S. federal tax reform passed in 2017, Bloomberg reported, citing anonymous sources privy to the matter.

According to the report, individuals investing in opportunity funds can defer taxes until 2026, and if the fund purchases and holds qualifying assets for at least five years, investors can decrease the tax they pay or eliminate it entirely.

Citing the unnamed sources, the report said Normandy Opportunity Zone Fund LP will deploy capital in value-add and core commercial real estate opportunities in the Northeast, targeting a gross internal rate of return of 12%.

The platform may invest in office, industrial, multifamily and life-science properties and will include a separate sidecar fund allowing investment into companies that are tenants of buildings within the fund.