SMARTCAP boasts a strong track record in Snohomish County, having successfully delivered 7 buildings, with 5 of them situated in Opportunity Zones. Our entire portfolio in the area demonstrates remarkable occupancy rates, particularly among light manufacturing buildings which are fully occupied. Arlington Air North is set to follow suit, with a targeted focus on manufacturing users, enhancing our already robust industrial portfolio.
Frequently Asked Questions
What is an Opportunity Zone?
An Opportunity Zone is a designated economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.
How do Opportunity Zones work?
Investors can reinvest their capital gains into Opportunity Funds that are dedicated to investing in designated Opportunity Zones, stimulating economic development and job creation in those areas.
What are the tax benefits of investing in an Opportunity Zone?
The main benefits include deferral of taxes on previously earned capital gains, a step-up in basis for capital gains reinvested in an Opportunity Fund, and potential exclusion from taxable income of future gains on that investment if held for at least 10 years.
What is a Qualified Opportunity Fund (QOF)?
A Qualified Opportunity Fund is an investment vehicle set up as either a partnership or corporation for investing in eligible property located in an Opportunity Zone.
Are there any risks associated with Opportunity Zone investments?
Yes, like all investments, there are risks including market volatility, regulatory changes, and the long-term nature of the investment required to reap maximum tax benefits.
Can I invest in an Opportunity Zone through a self-directed IRA or 401(k)?
Yes, it is possible to invest in Opportunity Zones through a self-directed IRA or 401(k), but it is essential to comply with specific IRS rules and consider the fund's structure.
What types of projects can be funded in Opportunity Zones?
Projects can include real estate development, business startups and expansions, infrastructure, and certain types of renewable energy projects.
How long do I need to hold an investment in an Opportunity Zone to receive the full tax benefits?
To receive the full tax benefits, an investment must be held in the Opportunity Zone fund for at least 10 years.
How are Opportunity Zones impacting local communities?
Opportunity Zones can lead to increased economic development, job creation, and improved infrastructure in underserved areas.
WHY INVEST WITH SMARTCAP?
We drive superior returns and build long-term relationships with investors by providing consistent, transparent and high-quality commercial real estate investments.
Optimal and transparent communication with detailed quarterly reports.
Highly focused on long-term relationships with investors, lenders, and partners.
Deep local market knowledge with analytics-driven, evidence-based investment strategies.
Disciplined underwriting and conservative use of leverage to manage risk and return.