Opportunity Zone Fund a $100+ Million Real Estate Investment Fund
Atlanta, GA — January 31, 2019
The Epic Community Impact Fund, LLC, an affiliate of Epic Partners, and Virtua Partners (Virtua), a global private-equity real-estate investment firm, today announced the Epic/Virtua Opportunity Zone Fund I. The joint venture partnership aims to raise more than $100 million and is designed to utilize the tax-savings opportunities created by recent tax-reform law. The Epic/Virtua Opportunity Zone Fund I is a real estate investment fund focusing on multi-family and commercial projects, townhomes and single-family rental properties located in Opportunity Zones in the metropolitan Atlanta area.
Under the Tax Reform Act (Tax Cuts and Jobs Act of 2017) investors can defer and reduce capital-gains taxes when they reinvest profits into funds like the Epic/Virtua Opportunity Zone Fund I within 180 days following the sale of a prior investment. Unlike 1031 Exchange transactions, an investor does not have to invest the entire previous investment. Investors can use capital-gains proceeds from any asset class to capture the benefits of the Opportunity Zone Fund provisions.
“The Epic/Virtua Opportunity Zone Fund I leverages its investment with new market tax credits, low-income housing tax credits, and historic tax credits to create better IRR (Internal Rate of Return) for our investors,” said Jerry McGaughy for the Epic Community Impact Fund. “We are excited to have formed this partnership with Virtua Partners, a highly prestigious global private-equity firm specializing in commercial real estate, and a leader in raising capital for Opportunity Funds and developing within Opportunity Zones.”
Pursuant to the Tax Reform Act, governors of each state have designated Opportunity Zones, which are specific geographic areas eligible for tax-advantaged, long-term investment. Investors in qualified Opportunity Zone Funds receive a basket of tax benefits, including deferral of current capital gains, a tax reduction of up to 15% on current gains if held for a seven-year period, and no capital gains taxes on appreciation if the investment is held for 10 years. Capital gains taxes from the sale of the original asset may be deferred until the asset is sold or until December 31, 2026, whichever comes first.
“For investors, this is a unique opportunity to capture a generous break on capital-gains taxes, while investing in real estate that stands to benefit from a broader government mandate for growth,” explains Derek Uldricks, president of Virtua Capital Management. “At the same time, investors can also make an impact by supporting the improvement of local communities and economies with their Opportunity Zone-directed investments. We are thrilled to offer this fund with Atlanta-based Epic Partners to accredited investors.”
Opportunity Zones in Atlanta are geographic areas designated by the local government to spur development. Atlanta Opportunity Zones must meet certain criteria to qualify. The IRS and U.S. Department of Treasury have approved zones in all states including Georgia. Each county in Georgia submitted zones for consideration by the Governor. These new Federal Opportunity Zones have been created where poverty rates are greater than 20 percent.
For more information, please visit www.EpicImpactFund.com or www.VirtuaPartners.com.
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About Epic Community Impact Fund:
The Epic Community Impact Fund, LLC, an affiliate of Epic Partners, is a certified Community Development Entity (CDE) with the Department of Treasury’s Community Development Financial Institution (CDFI) Fund that provide debt and/or equity investment for real estate projects and small businesses development located in low-to-moderate income communities throughout metro Atlanta.
With over 80 years of experience, Epic Partners currently manages a diversified real estate portfolio of both commercial income producing assets and residential development projects in the Atlanta area.
Virtua Partners is a global private equity firm specializing in commercial real estate. The firm and its affiliates sponsor a variety of investment funds and commercial real estate projects across the United States and currently have 16 million square feet of assets under management or development. Virtua Partners’ goal is to provide superior risk-adjusted returns for high-net-worth individuals and family offices through comprehensive strategies, rigorous underwriting, and careful execution.
This press release is not intended to be, nor should it be construed or used as, investment, tax, or financial advice or an offer to sell or a solicitation of an investment in any securities offered by or any project managed or advised by Virtua Partners (US), LLC, or its affiliates. Any offer or solicitation of an investment may be made only by delivery of confidential offering documents (collectively, the “Offering Documents”). Prospective investors should review carefully and rely solely on Offering Documents in making any investment decision.
This article does not provide legal or tax advice but merely an overview of the Opportunity Zone investment component of the Tax Reform Act of 2017. One should consult their own attorney, Certified Public Accountant and/or tax advisor for information about their specific situation.