Opportunity Zones Advisors (OZA) provides real estate expertise and guidance by connecting opportunity zone investors to qualified real estate opportunities across the U.S., Puerto Rico & the US Virgin Islands.

Featured 

OPPORTUNITIES

60 Acres | For Sale | Bloomington, MN

Largest undeveloped site in Bloomington with gorgeous views overlooking the Minnesota River Valley.

15 Acres | For Sale | Bloomington, MN

This prime 15-acre parcel is a rare Opportunity Zone. Strategically positioned, the site is at the gateway to the South Loop and Mall of America district.

BIRDTOWN FLATS | Robinsdale, MN

Birdtown Flats is a Class-A apartment project, currently under construction in Robbinsdale, MN which is located within a few miles of Minneapolis.

SOLD OUT

1010 HOFFMAN DRIVE | Owatonna, MN

Approximately 15,000-square-foot office/retail/warehouse space available for lease in Owatonna. Excellent access to I-35.

For lease

 

WHAT ARE

OPPORTUNITY ZONES?

Opportunity Funds are a new class of investment vehicle authorized to aggregate and deploy private investment into Opportunity Zones.

 

Originally introduced in the Investing in Opportunity Act (IIOA), the Opportunity Zones Program was enacted as part of the 2017 tax reform package (Tax Cuts and Jobs Act).  The program is designed to drive long-term capital to rural and low-income urban communities throughout the nation, Puerto Rico and the US Virgin Islands and uses tax incentives to encourage private investment in businesses and real estate located in opportunity zones. 

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The IRS today provided guidance for QOFs and their investors in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. READ MORE

What's New

June 04

HUD released an updated toolkit, providing resources and tips for local leaders and developers on best practices for Opportunity Zones.

Notice 2020-39 (PDF) allows additional time for taxpayers to defer their eligible gains

OPPORTUNITY ZONES 101 

Tax Cuts & Jobs Act of 2017 introduced Opportunity Zones

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Creates tax incentives on capital gains invested in Opportunity Zones

Opportunity Zones are selected by the stated census tracts for areas with > 20% poverty rates

Economic development for distressed communites

WHY INVEST IN

OPPORTUNITY ZONES?

  • DEFERRAL

    A temporary deferral of capital gain taxes if reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed
     or December 31, 2026.

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  • CAPITAL GAINS

    A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years. Thereby, excluding up to 10% of the original gain from taxation.

  • TAX EXCLUSION

    A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. 

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  • DEMAND

    Properties within Opportunity Zones will receive occupancy demand from businesses desiring to locate within an Opportunity Zone -  benefits exist for both real estate investors and businesses that occupy or invest in Qualified Opportunity Zones.

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  • IMPACT

    Investing in Opportunity Zones and Qualified Opportunity Zone Businesses can provide positive social impact to the 8,700 zones created. During the last economic expansion, over 90% of private equity was invested into less than  five US cities. It's now time to invest in America's Opportunity Zones.

 

WHY LOCATE A BUSINESS INSIDE AN

OPPORTUNITY ZONE?

Growing and emerging companies should consider relocating their business to an Opportunity Zone.

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Why it makes sense to become a Qualified Opportunity Zone Business (QOZBs)
The tax rules encourage Qualified Funds to invest in Qualified Zone Businesses (QOZBs) rather than to operate businesses in Opportunity Zones directly.  The primary reason a growing or emerging company should consider locating to a QOZ is access to capital.  Qualified Funds have 6 months after formation to begin investing in Opportunity Zone projects and many new funds are now seeking Qualified Opportunity Zone Businesses in which to invest.  In addition, qualifying as a Qualified Business could make a company more attractive to investors.

 


How to become a Qualified Opportunity Zone Business                                                                   
The main qualifier to become a QOZB is the requirement that at least 50% of a company’s gross income be derived from the active conduct of a business in an Opportunity Zone.  But wait, the IRS has now established “safe harbors” that provide that this requirement will be met if either:

  • the management, operations and tangible property needed to generate 50% or more of the gross income of the business are in an Opportunity Zone; or

  • 50% or more of the services performed for the business by employees and independent contractors (based on either hours worked or compensation paid) are performed in an Opportunity Zone.


Thus, a company that locates its headquarters in an Opportunity Zone could satisfy the 50% gross income test regardless of whether its income is generated inside or outside of the Opportunity Zone. Alternatively, a startup headquartered outside an Opportunity Zone could meet the 50% gross income test if its employees and independent contractors spend most of their time inside the Opportunity Zone. While there are other requirements a company must meet to qualify as a Qualified Business, all companies should evaluate and consider the potential benefits to the company and Opportunity Zones Advisors can assist you along the way.
 

 
 

WE BRING THE

OPPORTUNITIES TO YOU

We have decades of commercial real estate experience and significant knowledge with the Opportunity Zone program, its benefits, and pitfalls. We are experts in identifying available properties and projects within the marketplace that are quality Opportunity Zone investments.  No real estate team can provide clients with more information and market knowledge related to the Opportunity Zone program. 

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Give us a call - we love discussing Opportunity Zones, it gives us goose-bumps.

John McCarthy

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