5 Criteria to Evaluate a QOZ Fund Manager
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QOZ Fund III
Defer and eliminate capital gains taxes with multifamily developments.
Target Net Return1
10%-12%
Target Net Equity Multiple1
2.25x–2.5x
Asset Type
Multifamily
Investment Objective
Growth
Hold Period
10+ Years
Minimum Investment
$50K
QOZ Program Benefits
The Qualified Opportunity Zone program was created under the Tax Cuts and Jobs Act of 2017 to incentivize real estate investment in targeted communities in need of economic development, called QOZ’s. It provides significant tax advantages to investors who invest with capital gains. Some examples of assets that can be sold and the proceeds reinvested in a QOZ are stocks, real estate, a private business, precious metals, cryptocurrencies and art.
Tax Deferral
Investors will be able to defer federal income tax on eligible capital gains realized from the sale of a previous investment by reinvesting those capital gains into Origin’s QOZ Fund III.
Tax Elimination
Investors will be able to pay zero federal taxes on the appreciation of the QOZ Fund III investment by holding the investment for 10 or more years.
Tax Efficiency and Cash Flow
Once its assets are developed, the Fund will hold a portfolio of Class A cash-flowing properties. Taxable income from such property may be offset by depreciation, and if the investment is held for 10 years or more, the depreciation recapture tax is eliminated.
Potentially Boost Your After-Tax Return2
Potentially boost your after-tax returns when you invest capital gains in the Origin QOZ Fund III versus an investment in a similar but non-QOZ fund.
Hypothetical Year 10 Value of a $1M Investment
Origin QOZ Fund III Investment
Non QOZ Fund Investment
Assumes 2.25x net equity multiple return before factoring taxes and tax benefits and same investment basis as equivalent taxable investment ($762,000).
Origin QOZ Fund III Strategy
Selection Criteria
The Fund intends to invest in projects that we believe will likely produce risk-adjusted returns before factoring in the QOZ tax incentives.
Path of Growth
We look for properties located in fast-growing markets in already transforming neighborhoods.
Build-to-Core
After the properties are built, the QOZ Fund intends to be a geographically diversified portfolio of Class A properties that aims to produce stable cash flow for investors.
Why Origin?
Market and Project Selection
Many of today’s vibrant neighborhoods were once economically distressed areas. We have targeted transitioning neighborhoods since we founded Origin in 2007 because this is where some of the highest risk-adjusted return opportunities exist. We look for the most promising blocks within QOZs with strong population and job growth, a diverse economy and higher forecasted demand than supply.
Proven Development Expertise
We have $2.4 billion of ground-up development projects in progress or completed.
Active Investment Management
QOZ Fund properties will be operated for at least five to seven years after construction to meet the QOZ program’s 10-year hold requirement. Our experienced investment management team has decades of operational experience and strives to optimize revenue growth, scrutinizing every dollar of controllable operating expenses to try to maximize investor returns.
Learn more about QOZ investing.
Get Fund Documents
Download the deck to get more detail about:
Our Fund Strategy
QOZ Tax Benefits
Fund Terms
- Targeted performance doesn’t represent an actual investment and frequently has sharp differences from actual returns. Targeted returns are inclusive of appreciation and reinvestment of distributions and are net of fees. There can be no assurance that the Fund will achieve comparable results or meet its target returns.
- The tax benefit analysis is hypothetical and is presented for illustrative purposes only. Investors should not expect any level of returns and an investment is subject to the risk of loss. The tax analysis is subject to meeting specified deferral criteria. Please see your tax advisor for more details.