Opportunity Zone Magazine Opportunity Zone Magazine Volume 1, Issue 1 | Page 72

70 OPPORTUNITY ZONE MAGAZINE | VOLUME 1 • ISSUE 1 Individual, estate, trust, or business taxpayers residing or commercially domiciled reek QUALIFIED OPPORTUNITY ierra ZONE PROJECT in states that adopt the Apartments The Sierra Creek Apartment Homes can start construction federal program should a Sierra Creek LLC Company as early as September 2019. consider limiting their QOZ Time to completion is estimated at 14 to 18 months. investments to their home This project can be fully leased prior to the completion of construction. Sierra Creek Apartment project holds a monopoly state, other OZ conforming on the apartment market in the surrounding four cities. states or states that have no Equity needed with current construction financing: state income tax. $15,000,000 est. S c Due to New York’s QOZ conformity, tax on the original $1 million gain will be deferred for federal and New York tax purposes. In 2029, (the 10-year milestone) the basis of the QOF investment will have been adjusted to fair market value resulting in no reportable gain on the subsequent sale of the QOF 248 investment for federal and New York purposes. Unit Apartment For California purposes, since California will generally only Project in California conform to the OZ program for certain affordable housing, senior living and selected “green” projects, the tax basis in the CONTACT OWNER: DAVID EUZARRAGA • [phone] [email protected] • www.sierracreekllc.com S ierra c reek Apartments Apartments a a Sierra Sierra Creek Creek LLC LLC Company Company 248 248 Unit Unit Apartment Apartment Project Project in in California California CONTACT CONTACT OWNER: OWNER: DAVID EUZARRAGA DAVID EUZARRAGA • • (714) [phone] 345-3744 [email protected] [email protected] • • www.sierracreekllc.com www.sierracreekllc.com Equity needed to fund the total construction cost: $61,000,000 est. (Estimated savings of $6,000,000 in construction cost). Estimated property valued at completion with a 5.75% Cap rate: $92,914,086 Estimated net annual income (prior to mortgage debt): $5,342,560 The Sierra Creek Apartment Home project is a great opportunity for “Investor and/or Developer”. QUALIFIED QUALIFIED ZONE ZONE OPPORTUNITY OPPORTUNITY PROJECT PROJECT The The Sierra Sierra Creek Creek Apartment Apartment Homes Homes can can start start construction construction as early as September 2019. as early as September 2019. Time Time to to completion completion is is estimated estimated at at 14 14 to to 18 18 months. months. This This project project can can be be fully fully leased leased prior prior to to the the completion completion of of construction. construction. Sierra Sierra Creek Creek Apartment Apartment project project holds holds a a monopoly monopoly on on the the apartment apartment market market in in the the surrounding surrounding four four cities. cities. Equity Equity needed needed with with current current construction construction financing: financing: $15,000,000 est. $15,000,000 est. Equity Equity needed needed to to fund fund the the total total construction construction cost: cost: $61,000,000 est. $61,000,000 est. (Estimated (Estimated savings savings of of $6,000,000 $6,000,000 in in construction construction cost). cost). Estimated property valued at completion with Estimated property valued at completion with a a 5.75% 5.75% Cap Cap rate: rate: $92,914,086 $92,914,086 Estimated Estimated net net annual annual income income (prior (prior to to mortgage mortgage debt): debt): $5,342,560 $5,342,560 The The Sierra Sierra Creek Creek Apartment Apartment Home Home project project is is a a great great opportunity for “Investor and/or Developer”. opportunity for “Investor and/or Developer”. OPPORTUNITYZONEEXPO.COM