Opportunity Zones

Unlocking Potential, Driving Growth

What Are Opportunity Zones?

Opportunity Zones are a federal initiative established under the Tax Cuts and Jobs Act of 2017 to spur economic development and job creation in economically distressed communities across the United States. These zones are designated by state governors and certified by the U.S. Department of the Treasury, providing tax incentives to investors who inject capital into businesses, real estate projects, and infrastructure in these areas.

How Do Opportunity Zones Work?

Investors can receive significant tax benefits by investing in Opportunity Zones through a Qualified Opportunity Fund (QOF). Here’s how it works:

Capital Gains Deferral

Investors can defer paying capital gains taxes on the sale of an asset by reinvesting the gains into a QOF within 180 days.

Step-Up in Basis

If the investment in the QOF is held for at least 5 years, the investor’s basis in the original investment increases by 10%. If held for 7 years, the basis increases by an additional 5%, resulting in a total 15% reduction of the deferred gain.

Tax-Free Growth

If the investment in the QOF is held for at least 10 years, any gains accrued from the Opportunity Zone investment itself can be permanently excluded from capital gains tax.

Benefits of Investing in Opportunity Zones

Tax Incentives

The primary draw for investors is the substantial tax benefits, including deferral, reduction, and potential elimination of capital gains taxes. This makes Opportunity Zones an attractive option for those looking to optimize their tax strategy.

High Impact, High Returns

Opportunity Zones provide a unique chance to invest in projects that not only offer competitive returns but also contribute to the revitalization of underserved communities. This dual benefit aligns financial success with social impact.

Diversified Investment Opportunities

Opportunity Zones span across urban, suburban, and rural areas, offering a wide range of investment opportunities in various sectors, including real estate, infrastructure, and operating businesses.

Long-Term Value Creation

With the potential for significant tax-free growth over a 10-year investment horizon, Opportunity Zones are ideal for investors with a long-term perspective seeking to build wealth while making a difference.

Why Choose MHR Capital for Your Opportunity Zone Investments?

At MHR Capital, we specialize in identifying and developing high-potential Opportunity Zone projects that align with our investors’ financial goals and our commitment to community development. Our extensive experience in real estate and finance, coupled with a deep understanding of Opportunity Zone regulations, ensures that our clients maximize their investment potential while contributing to the growth and revitalization of America’s underserved communities.

Get Started Today

Whether you’re an individual investor, a family office, or an institutional investor, MHR Capital can help you navigate the complexities of Opportunity Zone investing. Contact us today to learn more about our current projects and how you can benefit from this transformative investment opportunity.

Have questions or ready to invest? Reach out to our team to explore how Opportunity Zones can work for you.

MHR Capital operates as a vertically integrated hospitality and multifamily investment firm, spearheaded by a team of experienced executives who are leaders in the industry. Our strategy combines institutional-grade policies and procedures with a dynamic entrepreneurial mindset, enabling us to introduce innovative solutions tailored to each asset we acquire and manage. At the heart of our mission is an unyielding dedication to improving the quality of life for residents in every community within our portfolio.