Financial Returns
10-Yr Equity Multiple
Projected gross return on initial investment over full 10-year hold period
Target IRR
Deal level levered internal rate of return
Preferred Return
Targeted preferred return compounded annually to investors
Exit Cap Rate
Projected capitalization rate at disposition
Stabilized YoC (Yr 2)
Year 2 stabilized yield on cost with full real estate taxes
Total Project Cost
Total development cost including land, hard costs, and soft costs
Distribution Timeline
2025-2027
Development & Construction
0%
Distribution Rate
Construction period with no distributions to investors
2027-2028
Lease-Up & Stabilization
6-7%
Distribution Rate
Property reaches stabilized occupancy and begins cash flow
2028-2035
Stabilized Operations
8-10%
Distribution Rate
Steady cash flow with annual rent growth and NOI expansion
2035
Disposition
100% of proceeds
Distribution Rate
Capital and profits distributed upon sale with OZ tax benefits
Opportunity Zone Benefits
Capital Gains Deferral
Defer capital gains taxes on reinvested gains until December 31, 2026, providing immediate tax relief and improved cash flow
Depreciation Recapture Elimination
Unlike typical real estate investments, Opportunity Zones allow investors to entirely avoid depreciation recapture tax when the OZ asset is sold after 10 years. This means all depreciation taken over the holding period is not subject to taxation, further boosting after-tax returns and increasing the net benefits of long-term OZ investing.
Tax-Free Appreciation
After 10-year hold period, all appreciation on the Opportunity Zone investment is 100% exempt from federal capital gains tax
