CALIFORNIA REAL ESTATE · OPPORTUNITY ZONES
Reinvest eligible capital gains in tax-advantaged real estate—with potential annual income, depreciation benefits, and tax-free growth on qualifying appreciation after ten years.
We connect investors with developers and coordinate the investment from initial review through the long-term hold. Federal benefits depend on qualification; California taxes differ.
WHY OPPORTUNITY ZONES?
A business sale, appreciated stock, or a property sale can create a capital gain. A qualifying Opportunity Zone investment puts that gain to work in real estate with distinct federal tax advantages.
Defer federal tax on eligible gains reinvested through a Qualified Opportunity Fund. For qualifying investments from 2027, deferral generally lasts five years, unless an earlier inclusion event occurs.
A qualifying five-year hold generally brings a 10% basis increase on the original deferred gain. The original tax bill is deferred and potentially reduced—not eliminated.
As a project moves from construction into operation, rental income may support distributions. Depreciation may reduce taxable rental income, subject to your own tax circumstances.
Cash flow is not guaranteed. Depreciation is a real estate tax feature, not an automatic OZ deduction; basis, at-risk, and passive-loss rules can limit its use.
After at least ten years, a qualifying election may exclude investment appreciation from federal capital-gains tax. That can make long-term growth more valuable after tax.
This applies to qualifying appreciation, not the original gain, annual income, or all state taxes. For post-2026 investments, the valuation benefit is capped at the 30-year anniversary.
Federal framework: IRS Notice 2026-40. Depreciation: IRS Publication 527. Understand California’s separate tax treatment
WHY PLAN NOW?
OZ 2.0 creates a new cycle of designated communities and a rolling five-year deferral framework for qualifying investments. The work starts before the investment: identify the gain, understand your deadline, review the property, and build the right structure.
Discuss the expected gain and liquidity needs with your CPA. Map out the typical 180-day investment window and any special timing rules.
Confirm the designation, fund structure, development budget, sponsor, and plan for tax due on the original gain.
Agree on reporting, expenses, distributions, decision rights, and a business plan that works for a ten-year investment.
New-zone certification must be verified. Eligibility or a draft recommendation does not establish designation. California’s designation process
ONE PARTNERSHIP. TWO PERSPECTIVES.
Good real estate, aligned capital, and clear responsibilities. Our role is to bring them together—and keep them connected.
Understand the real estate, the people behind it, and the plan for your capital. Stay connected as the project develops.
Bring your project and local execution expertise. We work alongside you as co-GP to coordinate OZ equity and the investment partnership.
HOW WE WORK
We coordinate the process, engage the right specialists, and stay involved. The developer leads project execution.
Review the site, developer, market assumptions, and potential fit for an OZ investment.
Coordinate equity, legal and tax advisers, project economics, and responsibilities.
Track the development plan, review operating performance, and communicate with investors.
Coordinate annual administration and prepare for financing, distributions, and eventual exit.
AN EXAMPLE PROJECT
A property-level study showing how we connect a development plan, investment assumptions, and a clear visual narrative.
Explore the concept studyOZ KNOWLEDGE
The investment timeline, the federal benefits, and the distinctions that matter.
Read the guideWhy designation and state tax treatment deserve their own diligence.
Read the guideA practical framework for reviewing the property, sponsor, capital plan, and economics.
Read the guide