Recent tax code changes provided for the creation of opportunity zones. These zones are a new community development program designed to encourage long-term investments in distressed urban and rural communities nationwide. The code change establishes a tax incentive for investors who re-invest unrealized capital gains into Opportunity Zone Funds, such as the 3LB Opportunity Zone Fund.
As guidance from the U.S. Treasury Department and IRS are made available, the picture becomes clearer that the program will be one of the most significant of its kind. Our approach is to target real estate within these zones and to initially underwrite them as if no incentives exist. If the asset is worthy of investment without the incentives, it most certainly is with the massive benefits of the program.
Update - July 2022
Waypoint Development along with 3LB Equities, are seeking a $3.0M limited partnership equity investment for the development of the Southton Apartments (the“Project”). The Project is a 229,881 SF ground up Class A development consisting of 239 units across 13 2- and 3-story garden style buildings.
Located in San Antonio, TX, the Project is less than 15 miles from the downtown cores and 20 miles from the San Antonio International Airport. This established bedroom community affords residents a shorter commute to the downtown center of San Antonio while providing a quieter suburban lifestyle and amenities. With employment hubs within a 5 minute drive from the Project and high barriers to entry for competing supply in this part of San Antonio, the Project should see leasing velocity of 19 units per month.
Waypoint Development is an experienced Sponsor with a long standing track record of Multifamily Development throughout the Southeastern US, with over 2,500 units delivered from Texas to Florida and in between.
The Project will benefit from extensive financial incentives including:
• Firm Commitment on a HUD 221(d)(4) Loan, with rate locked at 4.75% for it’s entire 42 year term
• $3.0M National Housing Trust Fund 0% “soft money” loan (only payable through distributable cash), coterminous with senior HUD loan.
• 100% property tax abatement through partnership with the San Antonio Housing Trust PFC
• Qualified Opportunity Zone project
Where are the Opportunity Zones?
For a look at the nationwide map of Opportunity Zones, please follow this link: https://www.cims.cdfifund.gov/preparation/?config=config_nmtc.xml
3LB's geographic focus is on Texas. For a map of Opportunity Zones in Texas, please follow this link:
How can I learn more about 3LB's strategy?
3LB is presently seeking multi-family assets located in Texas Opportunity zones or land that could be used in the development of multi-family properties located in Texas Opportunity Zones.
For a link to our Accredited Investor Questionnaire and Certifications, please click here:
For a link to our Confidentiality, Non-Circumvention Agreement, please click here:
For any inquiries pertaining to Opportunity Zone Fund Investment, please email ASmith@3lbequities.com.
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