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Build-to-Rent OZ Fund

Tax-advantaged real estate for accredited investors with capital gains

Why Build-to-Rent?

Due to ongoing national market pressures, including a massive housing supply shortage, unaffordable home prices, high mortgage rates, and changing renter preferences, single family and townhome rental communities are proving to be an increasingly attractive real estate asset class for institutional investors.

For investors, Build-to-Rent (BTR) properties offer the potential of stable cash flow and long-term appreciation, as these properties typically see premium monthly rental rates, lower vacancy rates, and stronger renter profiles who prefer longer term leases than comparable multifamily properties.

Renter demand for this living option also grows, as BTR properties offer a unique blend of flexible leasing, modern amenities, and professional management, with more space and privacy than traditional apartments, all without the financial commitment and burden of purchasing a home.

Read more about the BTR asset class in CBS News

  • $60 Million Fund Size
  • 3 Properties
  • 10+ Years

Fully Defined Portfolio

Pinnacle Partners and Trilogy Investment Company have partnered to deliver a Qualified Opportunity Zone Fund that will invest in three Build-to-Rent townhome development projects within Opportunity Zones in Decatur and Augusta, GA, as well as Huntsville, AL. This tax-advantaged real estate fund is targeting strong risk-adjusted returns, fueled by long-term positive trends in these markets, and a direct-to-sponsor fee and promote structure.

OZ Fund VIII

Decatur, GA

45 Townhomes

Market-rate townhome development in suburban Atlanta

OZ Fund property

Augusta, GA

245 Townhomes

Workforce townhome development 15 minutes from downtown Augusta

Huntsville, AL

172 Townhomes

Market-rate townhome development 15 minutes from downtown Huntsville

Proven Joint Expertise

Trilogy Investment Company

Led by a team of investment, development, and construction professionals, Trilogy Investment Company (TIC) is a vertically integrated residential investment and development company specializing in build-to-rent, for-sale, multi-family, and land development. TIC builds communities in desirable neighborhoods near great schools and major economic drivers, with their developments offering luxurious finishes and coveted amenities for like-minded families and young professionals desiring opportunities beyond traditional residential living.

Pinnacle Partners

An SEC-Registered Investment Advisor (RIA) focused on tax advantaged private real estate investment opportunities; specifically, through Qualified Opportunity Zones and workforce housing developments, in partnership with 50+ RIAs and hundreds of individual investors. Pinnacle has capitalized over $1B in multifamily development projects, including more than 2,400 units of multifamily housing, and sources off-market opportunities with best-in-class development partners.

OZ Program Tax Benefits for Investors

The Opportunity Zone (OZ) program was established by the U.S. government as part of the Tax Cuts and Jobs Act of 2017. The program is designed to incentivize long-term investment in designated “Opportunity Zones” in low-income communities across the country, promoting economic growth and job creation. Investing in a Qualified Opportunity Fund (QOF) provides significant tax advantages for investors with eligible capital gains. Examples of eligible gains include the sale of stock, real estate, a business, cryptocurrency, art, and partnership interests.

Deferral of Capital Gains Taxes

Eligible capital gains can be invested into a QOF within 180 days of realization. By investing in a QOF, the invested capital gains tax is not due until 2026.

No Capital Gains Tax on Fund Profits

After the QOF investment is held for at least ten years, an investor’s disposition of an investment in the QOF does not result in any additional federal income taxes.

No Depreciation Recapture

Any depreciation used to offset ordinary income taxes throughout the ten year holding period from property cash flows is also eliminated.

Built-to-Rent Strategies in Opportunity Zones

Watch our webinar to learn more about OZ tax benefits and how BTR properties offer investors the potential for both stable cash flow and long-term appreciation.

WATCH IT HERE

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Get in touch with our team to learn more about this opportunity.

General Inquiries
Blake Backer
Vice President, Investor Relations
blake@pinnacleoz.com
425.736.7084