Opportunity Zones at a Glance

Overview

The Tax Cuts and Jobs Act of 2017 created a once-in-a-lifetime tax incentive program for community reinvestment and development in the form of Opportunity Zones (“OZs”) learn more in our white paper.


TAX BENEFITS

Investors can realize substantial, three-pronged tax benefits by reinvesting capital gains into long-term investments in Qualified OZs – areas designated by cities, states and the federal government for economic development.

 
 

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8,762

Identified census
tracts nationwide

75%

Of OZs are located in zip codes with recent employment growth

$6.1t+

Addressable monetization opportunity(1)

$100b+

Treasury-estimated
private investment(2)

(1) Source: Economic Innovation Group
(2) Source: Wall Street Journal


McNally’s Capital Across America OZ Program

Selectively, directly invest in premier OZ projects across the country
Access high-quality investment opportunities targeting strong returns on a standalone basis
Realize the full economic benefits of OZ tax incentives
Leverage McNally's OZ platform alongside Real Estate Industry Expert, Joseph Cahoon
Partner alongside top-tier family offices with an aligned, long-term investment focus

Investment access, screening & diligence

Partnership with local developers

Selective project diversification

Simplified investment transparency

Ongoing compliance & monitoring


INVESTMENT CRITERIA

Asset Type

Ground-up, mixed-use developments featuring combination of multifamily, office, retail, hotel, etc.

Community Engagement

Developers have stable, embedded relationships with local politicians and community stakeholders

Ownership

Family-held or developer-acquired; seeking long-term family office partners

Developer

Local developer with a demonstrated track record of delivering strong returns to investors

Alignment

Long-term partner for 10+ years; both with McNally and with family office investors

Geography

Growing secondary markets with favorable demographics and momentum since 2010 census

Project Origination

Under development prior to the Opportunity Zone announcement as part of the Tax & Jobs Cuts Act

Holding Period

10-year minimum with possibility to hold for 15+ years

Project Returns

Strong returns (12-15% IRR projects on 10-year hold) that are further enhanced with OZ tax benefits

Equity Investment

$25M+ of targeted equity needs

LEARN MORE AND STAY INFORMED

Sign-up below to download our OZ White Paper (addendum included) and receive timely updates about OZs.

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