PHOENIX--(BUSINESS WIRE)--Virtua Partners (Virtua), a global private-equity real-estate investment firm, today announced the launch of the first-ever Opportunity Zone Fund. This groundbreaking fund is the first vehicle designed to invest in the newly created Opportunity Zones -- one of the lesser known provisions of the Tax Cuts and Jobs Act of 2017 (the Tax Reform Act). Virtua Opportunity Zone Fund I, LLC aims to raise $200 million and is designed to utilize the tax-savings opportunities created by the tax-reform law.
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, and no capital gains taxes on appreciation if the investment is held for 10 years.
“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 be the first to offer such a fund to accredited investors.”
Under the Tax Reform Act, investors can defer and reduce capital-gains taxes when they reinvest profits into 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 — not just real estate — to capture the benefits of the Opportunity Zone Fund provisions.
“Investors should consider tax efficiency when making investment decisions. Virtua Opportunity Zone Fund I is designed to improve after-tax returns for long-term investors," said Uldricks. "We believe that investing in Virtua Opportunity Zone Fund I can be a key wealth building strategy for tax savvy investors."
Virtua Opportunity Zone Fund I will primarily invest in residential rental property development (multifamily and SFR rentals), hospitality and office. The geographical focus will be high growth sunbelt markets, such as Austin, Phoenix, Atlanta, Dallas, San Antonio, and Orlando.
To learn more about Opportunity Zones, visit VirtuaPartners.com.
About Virtua Partners:
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, including, but not limited to Virtua Opportunity Zone Fund I, LLC (“Virtua”). 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.