Building a house

As the Opportunity Zone (OZ) program continues to gain momentum, multifamily seems to be taking the lead in popularity for investment. Are you ready to take advantage?

In this recording of our recent webinar, our presenters take a deep dive into the practical structuring issues that need to be addressed as you consider offering an OZ investment into your next multifamily project.

First, we walk through the math of a deal so attendees understand exactly how an OZ investment offers better returns to an investor and how the after-tax IRR works, as well as specially allocating tax losses, designing waterfalls, promoting interests and other cash strategies that can be leveraged. The presentation then explores other considerations such as long-term governance issues, single asset versus multi asset fund structures, interim gains and more. 

Also, presenters review important questions still awaiting guidance from the IRS and explore the benefits of leveraging a licensed broker-dealer and fund administrators to ease the potential for increased back-office burden.

Key learning objectives

  • Discuss how to structure an OZ deal for a multifamily project
  • Identify key financial issues to consider
  • Recognize open issues needing IRS guidance and how to plan for them

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Pursuant to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, nothing contained in this communication was intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose. No one, without our express prior written permission, may use or refer to any tax advice in this communication in promoting, marketing, or recommending a partnership or other entity, investment plan or arrangement to any other party.

For more information on this topic, or to learn how Baker Tilly Opportunity Zone specialists can help, contact our team.

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