Real Estate Experience
29th Street Capital is a multi-faceted real estate private equity firm with headquarters in Chicago and San Francisco. The firm was founded in 2009 to capitalize on the dislocation in national real estate markets, and the partners continue to manage the firm as a dynamic and entrepreneurial business. To date, the firm has acquired over $1 billion of total assets with local acquisition managers in over 14 markets across the U.S. This "boots on the ground" presence in each target market gives our team the expertise and network to execute on investments.
Over the last decade, the firm has primarily targeted four real estate sectors that were poised for explosive growth during the economic turnaround. As the market bottomed out in 2009, we targeted non-performing and discounted loans with credit events and focused on assets under the institutional radar. Coinciding with the discounted debt fund was single-family residential which were acquired at a discount to market value through foreclosure auctions, short sales and REOs. The most recent and biggest sectors have been value-add multifamily investments and student housing platforms with a total of over 12,000 units across the country.
Resulting from the Tax Cuts and Jobs Act, we see a new sector of real estate investment into Opportunity Zones that is offering an attractive tax deferral and possible gain elimination strategy. We believe these zones will spur economic development by incentivizing investors to commit long term capital into select, new markets. Thus boosting the local economy in these areas with additional cash that leads to local spending, higher quality housing options, an increase in tax paying residents and other trickle down effects.
This site is to help you navigate the Opportunity Zone legislation and investment opportunities and hopefully, find real estate partners trying to utilize this great program. Get in touch with us to set up a consultation, or use the contact form at the bottom of this page to inquire whether our services are right for you.
Contact
➤ LOCATION
343 W. Erie Street STE 300,
Chicago, IL 60654
☎ CONTACT
[email protected]
(312) 379-8934
About the Opportunity Zone Legislation
New program in the 2017 Tax Reform bill intended to unlock over $6 trillion in captive capital gains across individuals and companies by providing new incentives for investing in certain low-income communities called “Opportunity Zones.”
By pooling capital through a fund structure, Opportunity Funds encourage large amounts of private investment into economically challenged, rural and low-income communities via Opportunity Funds while providing tax deferral, tax abatement, and tax-free appreciation on qualified investments to investors.
Opportunity Zones retain their designation for 10 years. Investors can defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. In addition, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.
DEFERRAL OF TAX GAIN:
Fund investors will receive a temporary tax deferral on the gain until 1) the disposition of the interest in the Fund or b) 12/31/2026 – whichever is earlier.
TAX FREE FUND APPRECIATION:
If a fund investment is held for at least 10 years, investor will not owe capital gains tax on any appreciation of the fund interest upon the ultimate disposition.
REDUCTION OF TAX ON GAIN:
A potential basis step-up of 15% or substantially more of the initial deferred amount of the investment. The lessor of the above step-up in basis or the FMV of the opportunity fund investment as of 12/31/2026.
Opportunity Zone Investment Highlights
Treatment of initial gain:
▪Hold investment for 5 years: 10% reduction in the amount of tax owed on initial gain via step up in basis.
▪Hold investment for 7 years: Additional 5% reduction in the amount of tax owed (ie only owe taxes on 85% of rolled-over capital gains
▪December 31, 2026 Recognition: On this date, taxpayer must recognize the LESSOR of (i) the initial capital gain less any year 5 or 7 step-up in basis, or (ii) the Fair Market Value of the investment in the Opportunity Fund (subject to recognized valuation discounts) allowing for larger step-up basis and further potential reduction in tax liability.
Investment Features:
▪Unlike a 1031 exchange tax strategy, this product gives you the ability to invest on your GAIN rather than the entire basis of your current investment.
▪All capital gain treatments (short and long-term) are eligible for opportunity zones.
▪Ability to invest in broad range of preferred asset classes.
Let's Chat.
Use the form below to contact us regarding your interest in the Opportunity Zone program. Please be as detailed as possible. Include your industry and/or real estate sector along with any other pertinent information. To help us best service your inquiry, we recommend that you describe your goal for utilizing an Opportunity Zone and any potential opportunity you have.