Qualified Opportunity Zones

The Qualified Opportunity Zone Program, established by Congress in the 2017 Tax Cuts and Jobs Act, works as a powerful tool to incentivize private sector long-term investments in areas targeted for redevelopment nationwide through Qualified Opportunity Funds, in exchange for a suite of tax benefits, including the ability to pay as little as $0 in capital gains on investment returns.

This Federal Program designed to incentivizing impact investing serves as a powerful program for investors with substantial capital gains seeking to realize them in a tax-efficient manner.

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The Solution to Opportunity Zone Investing

Fund Overview:

Halpern Real Estate Ventures Sponsor Capital Fund II (“SCF II”) offers investors the ability to invest alongside a seasoned investment platform, primarily focused on value creation and opportunistic equity investments in Qualified Opportunity Zones.

The fund is managed by an experienced team of Real Estate and Private Equity professionals, and supported by tax, accounting, and legal experts that have differentiated themselves as thought leaders and policy changemakers in the Opportunity Zone and tax credit space.

Investment Strategy:

HREV SCF II will target investments that benefit from a generational shift towards emerging urban lifestyle zones, amplified by business demand and capital flow that will be freed by the QOZ federal and state tax incentives designed to encourage investment.

The HREV investment approach focuses on ground up and adaptive reuse projects and seeks to establish long-term partnerships with locally entrenched operating partners, providing strategic capital, expertise, and relationships in order to execute on institutional quality projects.

HREV targets markets and property sectors in Opportunity Zones located in urban lifestyle cores in the Northeast, and other high growth markets in the Rocky Mountain West and Sunbelt States, that are poised to benefit from key long-term demographic and economic shifts, which, when coupled with our multi-cycle investment and risk management knowledge, along with micro-market knowledge and execution capabilities of local operators as partners, leads to compelling investment opportunities.

A Powerful Boost to Returns:

After-tax gains on an Opportunity Zone eligible investment are substantially increased in relation to a similar investment made without the Opportunity Zone tax benefits:

*The tax calculation uses New York City, the highest tax rate nationally for this example. The rate is comprised of Long Term Capital Gains tax of 20%, top marginal state and city tax rate of 12.7%, and 3.8% surcharge on capital gains, rounded to the nearest 10th.

Note: Chart does not capture cash flow, tax benefits from deprecation and expensing during the hold period.

Visualizing the Impact:

Within the 50 states and D.C., Opportunity Zones are home to 31.3 million people

Over three-quarters of certified tracts lie within metropolitan areas. An interactive map, depicting Qualified Opportunity Zones throughout the country is depicted below: