FREMONT, CA – MIG Real Estate LLC, a real estate investment firm headquartered in Newport Beach, has opened an escrow account for two new multi-family development projects in the Opportunity Zone: a 240-unit rental in Fremont and a 140-unit rental in Fremont Hollywood. These projects mark the company's entry into the Los Angeles and Bay Area markets.
"We are excited to have the opportunity to develop and improve these two properties by adding much-needed housing to these communities," said Elizabeth Cobb, development director at MIG. "These projects are important steps in our ongoing strategy to seek investments in the Opportunity Zone for development in key markets."
These efforts are a continuation of an investment strategy launched by MIG earlier this year to reposition the portfolio through acquisitions and development of new projects in key urban markets. To achieve this goal, MIG has allocated $ 100 million of equity to develop Opportunity Zone locations across the western United States. MIG is actively seeking other suitable land investment opportunities in primary markets in the states of West, Mountain West and Sun Belt.
"These two new projects mark the start of MIG's ongoing campaign to find and develop locations in Opportunity Zone locations across the west," Cobb told GlobeSt.com. "We hope that by rejuvenating these underserved areas with new projects, we can revitalize these communities and improve the surrounding areas and businesses."
Earlier this year, MIG acquired its first location in the Denver metropolitan area to develop and build a 114-unit luxury apartment community. The project is scheduled to begin construction this year.
In support of the new strategy, the company has made several strategic hires of professionals with extensive commercial development experience, including Michael Englhard as Chief Operations Officer, Elizabeth Cobb as Development Director, Chris Wright as Design Director and Colin Bagwell as Acquisition and Development Manager.
According to the California Opportunity Zone FAQ, there are three main benefits to investing in a qualifying opportunity fund:
Tax deferral for capital gains: An investor reinvesting capital gains in a qualifying opportunity fund may defer paying federal taxes on realized gains on the investment until December 31, 2026.
Capital gains tax reduction: An investor who has invested in a Qualified Opportunity Fund for at least five years can reduce a tax charge on capital gains by 10%. If the investor holds an investment for at least seven years, the reduction increases to 15%.
Elimination of taxes on future profits: An investor who has invested in a qualifying opportunity fund for at least 10 years is not required to pay federal capital gains tax on realized gains on the investment.
