At our firm, we always emphasize to clients the importance of having a financial plan to stick to and why they shouldn’t let short-term market gyrations influence their long-term investment decisions. Certainly, recent volatility has raised concerns about the stock market’s strength, but it is worth remembering that the strong performance we’ve seen over the last several years has benefited investors.*

Today, many of these investors are in a position and desiring to realize some of the gains they’ve achieved. Of course, capital gains taxes are always a concern. Fortunately, in the right situations, opportunity zone investments might offer a solution for investors to realize potential gains, diversify their portfolio and defer and potentially reduce tax liability. To read more about the tax benefits of opportunity zone investments please see our previous blog article.

We are currently working with three sponsors that have qualified opportunity zone investments available to our clients. We are also evaluating other investments on a regular basis and we anticipate offering additional opportunity zone investments in the future. Please be aware these investments are only available to accredited investors.

All three of these current opportunity zone investments are focused on real estate, and primarily real estate development. The target size of the funds ranges from $30 to 275 million, and the minimum investment starts as low as $50,000.

When evaluating opportunity zone investments at a high level, it’s helpful to note there are two distinct types of offerings. The first is a defined asset and the second is an investment fund or pool. Currently, one of the investments we have available is a defined asset. The intention of the sponsoring firm is to develop a hotel and multi-family building on what is currently a parking lot adjacent to a major sporting and events venue.

The other two offerings are structured more as pool investments. These firms may have assets already identified or even purchased, while also expecting to add additional properties in the future. One of these funds intends to focus on hotel development, primarily in metro and college campus locations. The other offering has a broader approach.

If you are interested in learning more about opportunity zone investments or reviewing offering materials, please contact us.

*Past performance does not guarantee future results