Symphony Park exterior

Put Your Capital Gains to Work

Opportunity Zones are designated, under-capitalized areas within the US that could benefit from economic development and job creation. The program provides investors with qualifying capital gains benefits in the form of tax deferral, reduction and elimination through investment in ground-up real estate development and redevelopment.

What are the Opportunity Zones?

Map of US Opportunity Zones

Opportunity Zones By The Numbers

  • KCensus tracts designated as QOZs
  • MPopulation
  • %Urban
  • $KMedian income
  • $BCapital raised
  • %Income growth

Which Gains Are Eligible?

Many types of capital gain are eligible for Opportunity Zone deferral, including stocks, bonds, commodities, partnership K-1s, business sale, real estate, personal residence, cryptocurrency and art

  • Stocks, Options
    Stocks, Options
  • Bonds
  • Commodities
  • Partnership K-1s
    Partnership K-1s
  • Business Sale
    Business Sale
  • Real Estate
    Real Estate
  • Cryptocurrencies
  • Art

What Are The Tax Benefits?

  • Defer


    Investors can defer the payment of capital gains taxes until 2026 by rolling realized gains into a Qualified Opportunity Zone ("QOZ") Fund

    Virtually any capital gain qualifies (stocks, bonds, K1 partnership gains, or entire business)

    Capital gains generally need to be invested in the QOZ Fund within 180 days of the sale that generated the capital gain

  • Eliminate


    Investment in the QOZ Fund becomes completely free of capital gains tax after 10 years, as the basis is increased to match current Fair Market Value

    Among other qualifications, assets in the QOZ Fund must be:

    • Put to new use or
    • Substantially improved by investing at least as much as the original purchase price

    QOZ Fund must invest at least 90% of its assets in a QOZ

  • State Taxes and Incentives

    State Taxes and Incentives

    Deferral and Forgiveness of Capital Gains Tax in Most States (excl. CA, NY, NC, MA, MS)

    State and municipal development incentives (e.g. fast track approval)

    Opportunity Zones can be effectively combined with other tax credit programs (e.g. historic preservation or affordable housing)

What Are The Conditions?

Three Basic Conditions of the Opportunity Zone Program - Well Aligned with GTIS Strategy and Experience

Opportunity Zones

GTIS Partners

  • 1

    Opportunity Zones

    Invest in designated QOZ locations

    8,700 Census tracts covering a variety of underserved areas

    GTIS Partners

    GTIS Qualified Opportunity Zone Fund II is a direct continuation of GTIS investment strategy and focus on areas undergoing transformation

    Experience in Opportunity Zone Markets – GTIS had committed over $180m of equity to projects located in Opportunity Zones prior to inception of the QOZ program in 2017

  • 2

    Opportunity Zones

    Invest in ground-up development or substantial redevelopment

    Cannot simply acquire existing cash-flowing properties

    GTIS Partners

    GTIS team and strategy focused on ground-up development since the firm’s inception in 2005

    In-house development capabilities plus joint ventures with 30+ local development and construction partners

  • 3

    Opportunity Zones

    Hold investment for a minimum of 10 years to deliver long-term benefits to the community

    Maintain QOZ certification status, complex reporting requirements

    GTIS Partners

    GTIS has an established fund management platform investing on behalf of some of the world’s largest pension plans and wealth managers with extensive reporting, institutional-style fees and governance

What Is The GTIS Opportunity Zones Strategy?

Venn diagram illustrating GTIS investment strategy

Case Studies

Tavalo at Cadence, Single-Family Build-to-Rent (Phoenix, AZ)

  • Development of 197 bungalow style one-to-three bedroom single-family rental community in Mesa, AZ
  • Single-story with 10’ high ceilings, open floor plans, private backyards
  • Class A multifamily style amenities
  • Construction using Hercuwall, an innovative and environmentally friendly prefabricated exterior wall system
  • 80% leased at projected rental yield of 6.8% as of Q2 2023