Opportunity Zones

The Opportunity Zones program, established through the Tax Cuts and Jobs Act, aims to spur long-term private sector investments in low-income communities nationwide. Investors in Opportunity Funds established within the designated Qualified Opportunity Zones can take advantage of federal tax benefits in exchange for their contribution to economic growth and investment in distressed communities. Project sponsors can also benefit from lower-cost capital generated by the program.

Investment 

Example 

This model assumes a 23.80% federal tax rate, 5.00% growth rate and 10.00% annual investment return. This model is for illustration purposes only, and contains certain financial assumptions as to the possible future results that are inherently uncertain and subjective. We make no representation or warranty as to the attainability of those assumptions or whether future results will occur as illustrated.

The State of Texas has established state and local economic development programs that provide support and incentives for companies that invest and expand their operations and workforces in Texas communities.

South Park Industrial Park is a property we own that can be rolled up into an Opportunity Zone.

We are planning to incorporate Santa Ana Industrial Park and San Fernando to our Opportunity Zone.

SOUTH PARK 2 - Closed in December 2019

BALL STREET 3 - Closed in February 2020

Benefits dependent on the number of
years the investment is held

5 YEARS

Deferred payment of existing gains until the investment is sold or exchange

5 - 7 YEARS

Benefits listed above plus 10% of tax on existing gain is cancelled

7 - 10 YEARS

Deferred payment of existing gains until 12/31/26 or the date that the investment is sold or exchanged (whichever comes first) plus 15% of tax on existing gain is cancelled

10 YEARS

Benefits of 7-10 year investment plus investors pay no gains tax on the investment (investments are exempt from any gains beyond those which were previously deferred)