DETROIT--(BUSINESS WIRE)--North Coast Partners, a real estate investment company, today announced the launch of the Detroit Opportunity Fund, which will focus on investing in newly designated Opportunity Zones in the Detroit area. The Detroit Opportunity Fund is the first of several geographically-targeted Opportunity Funds that will be offered by North Coast Partners via North Coast Asset Management to realize the unique tax benefits of Opportunity Fund investment. The Detroit Opportunity Fund is beginning with a $500 million pipeline of new deals in the city.
“The new federal legislation that created Opportunity Zones and Opportunity Funds is bi-partisan supported, intelligent and bold. The future of the country depends on legislation exactly like this,” said Matt Temkin, a managing member of North Coast Partners. “Given our history of investing in Detroit, we couldn’t imagine launching our first Opportunity Fund anywhere else.”
Opportunity Funds are brand new, tax-advantaged private investment vehicles created by the landmark Investing in Opportunity Act, which was passed as a part of the Tax Cuts and Jobs Act in 2017. Individual investors and corporations can roll capital gains from asset sales of any type into Opportunity Funds, deferring and eliminating federal and state taxes due on the rolled-in gains in the process. Further, gains produced by Opportunity Fund investment are tax free. Opportunity Funds can invest in over 8,700 Opportunity Zones that have been designated around the country over the last three months.
“This new legislation is coming at the end of the longest bull market in modern history. By some estimates, there are $6 trillion in unrealized capital gains sitting on the sidelines in America. The unique tax advantages of Opportunity Fund investment are something investors all over the United States should be examining. This is an entirely new asset class,” said Mr. Temkin. “Plus, the program is going to do great things for the country.”
About North Coast Partners
Established in 2013, North Coast Partners is a real estate investment company that has been syndicating private capital from investors around the for investment in multi-family and mixed-use projects in Detroit over the last five years. North Coast Partners will manage and oversee investments in the Detroit Opportunity Fund through North Coast Asset Management, a nationally focused real estate investment company.