Opportunity Zone rules push capital toward improvements rather than dirt, and OZ deals run against deadlines. Both facts point the same direction on the land.
A qualified fund has deployment deadlines and a working capital safe harbour with a defined window. A project that stalls waiting for an equity close does not simply cost more, it can put the fund's own compliance at risk.
Which makes a capital source that reduces the raise more valuable in an OZ deal than in a conventional one. It is not only cheaper money, it is less money to find inside a fixed window.
We buy the land at closing and lease it back for 99 years, unsubordinated. The QOZB holds the leasehold and the improvements, keeps the depreciation, and keeps every dollar of appreciation. The equity requirement drops by the land price on day one.
Structure and eligibility are fact-specific and depend on how the fund and the operating business are organised. Run the structure past OZ counsel before relying on it — we are a principal, not a tax advisor, and we will not tell you it qualifies. What we will do is price the land so your counsel has a real number to work against.
Generally no. That is the point of the question. Confirm with OZ counsel for your specific structure.
That is the usual shape. Confirm eligibility with counsel; we do not give tax advice.
It changes the sequencing. Tell us the date you are working to and we will say plainly whether it is achievable.
As-complete stabilized NOI, total project cost, market and asset type.
Depends on the window. We are a principal with no outside committee, which removes the slowest part, but title, appraisal and lender timing still apply.
Stabilized NOI, total cost, and the date you are working to. We will tell you whether the land number helps and whether the timing is real.
Email us the property