We anticipate the second tranche of Opportunity Zone guidance from Treasury will be issued very soon, and we will immediately circulate a summary for your review as the deadline for the reinvestment of 2018 capital gains, in part or whole, draws near for many.
In the interim, please find updated materials for Highmore’s Opportunity Zone Fund linked below, including a 6% preferred return. We are also structuring side pockets for large investors with unique objectives and constraints.
Highmore’s $1 billion-plus shovel-ready pipeline and our long-standing premier developer partnerships, represent key differentiators in our ability to offer a genuinely compelling tax-advantaged real estate investment strategy.
As you know, capital gains from nearly any asset may newly defer taxes by transferring those gains into qualified Opportunity Zone Funds. Established under the Tax Cuts and Jobs Act of 2017 (IRS Code Section 1400Z), Opportunity Zones encourage investments in distressed communities throughout the US. And, only capital gains (whether in part or whole) need be reinvested.
In short, this constitutes an unprecedented ability to effectively double-dip on capital gains tax mitigation – first on the initial capital gain, and then further on any gain that the Fund achieves, among other compelling tax benefits – all while having a positive impact.
Highmore’s Opportunity Zone Fund will take equity stakes in a diversified group of real estate projects in top tier markets across the United States, reducing risk by working with developers of exceptional pedigree and distinct skill sets. Those allocations will be made on the basis of individual projects that Highmore has diligenced and approved.
Please be in touch with any questions. We look forward to continuing the dialogue.
Many thanks and kind regards,
Jon David Willingham, Partner
Joseph Julian, PhD, Managing Director David Madrid, Director
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