We have been active investors in real estate for the past 30 years. Today, real estate is a rapidly changing asset class moving from "illiquid" to "liquid" with tokenization and crowdfunding, and from "static" to "dynamic" with the blending of co-living and co-working. Furthermore, a growing share of value creation in commercial real estate is now being driven by amenities and first floor solutions. We are opportunistic in both investment type and team in order to leverage and execute in the most advantageous manner. Additionally, we are active investors in, and advisors to, qualified opportunity zone funds (QOZ), which offer potentially significant tax incentives to investors with capital gains who reinvest such capital gains in businesses and assets in QOZ funds positively impacting low-income communities.
Select Real Estate Investments and Solutions
Railway Exchange Building - Chicago, IL
The National Chicago - Chicago, IL
Railway Exchange Building - Chicago, IL
Sunset Village Apartments - Northfield, IL
Opportunity Zones provide a unique opportunity to invest responsibly in underserved communities while simultaneously benefiting from significant tax savings. Ideal for estate planning, Opportunity Zones provide a chance for socially responsible investors to realize some of the most significant tax savings in nearly four decades. Topping Capital has been highly involved in discovering and advising investment opportunities specific to Opportunity Zones. Over the past twp years, Topping Capital has worked with pioneer funds and advisory groups to identify, source, structure and manage Opportunity Zone investments.
What are Opportunity Zones?
Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act of 2017 to encourage long-term investment and job creation in low-income areas of the state, by allowing investors to reinvest unrealized capital gains in designated census tracts. Only recently, in April 2019, were the last regulations and laws approved. The country now has over 8.700 census tracts designated as Opportunity Zones.
What is a Qualified Opportunity Fund?
A Qualified Opportunity Fund is an investment vehicle created as part of the Tax Cuts and Jobs Act of 2017. To qualify for tax benefits in Opportunity Zones, investments must be done through a Qualified Opportunity Zone Fund. Qualified Opportunity Zone Funds must invest at least 90% of their capital in qualifying asset classes in Opportunity Zones. An investor who has triggered a capital gain by selling an asset can receive special tax benefits if they roll than gain into a Qualified Opportunity Fund within 180 days.
Why Invest in Opportunity Zone Funds?
Qualified Opportunity Funds give people the chance to help underserved communities while allowing investors to defer, reduce, and even eliminated federal taxes on capital gains. By investing in a Qualified Opportunity Fund, investors can defer taxes on capital gains until December 31, 2026 and reduce that tax payment by up to 15%. Gains from a Qualified Opportunity Fund may even pay as little as zero taxes if the investment is held for 10 years.
Visit the Economic Innovation Group to learn more about Opportunity Zone incentives and receive up to date news on latest developments.
Opportunity Zone Partners
The Decennial Group is a vertically integrated real estate investment and development platform for tax-advantaged investment opportunities in Opportunity Zones in the American Heartland.
Topping Capital's partnership with Decennial Group stems from our belief that the most successful Opportunity Zone platforms will have to be developer-led as to create value through multi- phase development while compartmentalizing risk, vertically integrated for operating efficiency and fee compression, and have a strategic foothold in alternative power as to receive advantageous financing for developments and provide differentiation on exit value.
Base Camp collects and analyzes data from Opportunity Zone markets and Base Camp investments, to guide investment strategy and enable businesses to succeed by better understanding markets, trends, and consumer behavior.
Why Base Camp?
While there is lots of focus and discussion as to real estate plays in Opportunity Zones, Topping Capital has not seen much activity as to the businesses that will comprise these zone and make up the fabric of "community." We see Base Camp as an investment bank to Opportunity Zones and impact investing that can identify specific asset opportunities while also understanding its impact on communities.