Opportunity Zone Fund Blends Real Estate and Startup Investments with Tax Incentives to Advance Central Florida’s Communities, Entrepreneurs and Economy
ORLANDO, Fla.–(BUSINESS WIRE)–#Investor—Orlando Opportunity Fund Management, LLC announced that the launch of its Opportunity Zone Fund in Central Florida, Orlando Opportunity Fund, will occur on November 18, 2019 during a press conference at the University Club in Orlando. Committed to leveraging the collective experience of its formidable entrepreneurial and real estate investor team and tax incentives, Orlando Opportunity Fund is focused on producing investor returns, while impacting communities through investments in commercial real estate and early-stage tech companies.
“In Orlando, we are proud to have a reputation as a city that is a prime location for real estate investment with a robust entrepreneurial ecosystem where entrepreneurs and startup companies thrive,” says Orlando Mayor Buddy Dyer. “Orlando Opportunity Fund’s decision to create an investment fund specifically for startups and commercial real estate ensures we are continuing to remove barriers and create equal opportunities for all entrepreneurs and startups to succeed.”
The Orlando Opportunity Fund Management’s leadership team includes: John A. “Coop” Cooper, President of Startup Investments, Founder of Halestreet Investments, a Florida-based early stage investment enterprise, licensed investment banker and former Managing Director of Microsoft Corporation in corporate development and strategy group; Vince Wolle, President of Real Estate Investments, an experienced commercial real estate executive, broker and investor with more than 23 years of experience, averaging $40M+ in commercial real estate brokering volume annually over the past ten years; Donna Mackenzie, Chief Financial and Operating Officer, who has been involved in more than $90M in startup and early growth investments; and David Brim, Chief Strategy Officer, founder of Orlando Entrepreneurs and a marketing strategist and entrepreneur turned investor focused on funding early stage companies and commercial real estate.
“We recognized that Opportunity Zones have the potential to catalyze inclusive economic growth by leveraging these tax incentives. Our fund differentiates itself by focusing on both commercial real estate and tech startups with the goal of providing investors the returns they would expect from real estate investments and the potential upside that startups can bring to their portfolio,” says Donna Mackenzie, Chief Financial and Operating Officer.
An investor in Orlando Opportunity Fund, Gregg Pollack, categorized it by saying, ” I was attracted to this fund because of its intention to invest in my community, here in Central Florida. I also like that some of the funds are going towards startups, as I see great opportunities flourishing here which could accelerate with additional funding.”
OPPORTUNITY ZONES BACKGROUND
Created in the Tax Cuts and Jobs Act of 2017, Opportunity Zones are designed to drive long-term capital into low-income communities across the nation, using tax incentives to encourage private investment into designated census tracts through privately- or publicly-managed investment funds.
Investors in qualified opportunity funds may:
- Reinvest qualified capital gains.
Defer tax on original capital gain until the earlier of December 31, 2026 or when the investment is sold (or generally otherwise disposed).
- Receive a discount on their original capital gain through a 10% step-up in basis if the investment is held for at least 5 years.
- Receive an additional 5% step-up in basis if the appreciation from the investment is held for at least 7 years and invested prior to December 31, 2019.
Have the ability to permanently exclude the appreciation from the investment from taxation if the investment is held for at least 10 years.
The discussion above (i) describes certain U.S. federal income tax considerations applicable to investors in qualified opportunity funds that are U.S. investors (ii) is based on currently existing provisions of the Internal Revenue Code of 1986, as amended, existing, temporary and proposed regulations, and administrative and judicial interpretations, and (ii) is given only as a general guide. You should seek your own advice on the tax effects of investing in qualified opportunity funds.
ORLANDO OPPORTUNITY FUND INVESTMENT STRATEGY
Orlando Opportunity Fund is focusing on two types of investments – commercial real estate and growth-oriented technology, technology-enabled and other companies.
The real estate investing strategy is focused on acquiring undervalued or underperforming commercial real estate properties ripe for repositioning and located in Central Florida Opportunity Zones. Investments may be made into retail, offices, warehouse, storage, or multi-family properties. Ground-up development will also be considered based on the deal and circumstance.
Real Estate investments will range generally from $1 million to $5 million, which are typically above the reach of most individual investors, but often below the size desired for institutional investors. Investments in Orange, Seminole, Lake, Osceola, and Volusia counties will be given first priority; though other investments across Florida can also be considered.
The fund’s startup investing strategy is focused on funding scalable early stage technology, technology-enabled, or other companies in Central Florida. Specific interest areas include Enterprise Software, SaaS, Healthcare IT, Hospitality Tech, EdTech, IoT & Smart Sensors, Data & Analytics, Media, and FinTech. In order to be considered for the Orlando Opportunity Fund, businesses will need to be located within a designated Opportunity Zone or be willing to relocate.
Orlando Opportunity Fund operates with a strong commitment to its portfolio companies and invests the management team’s collective experience, capital, resources and network into each success.
Please contact the Orlando Opportunity Fund for more information on startup investing or real estate projects to consider at 407-494-0988.
About Orlando Opportunity Fund
The Orlando Opportunity Fund (www.orlandoopportunityfund.com) is a private investment fund based in Central Florida focused on converting qualifying capital gains into investments in commercial real estate and early stage companies. We are committed to producing investor returns while advancing our entrepreneurs, communities and local economy.
Christa K. Santos
Marketing and Public Relations