Minimize Capital Gains Tax from a Liquidity Event with Pennington Partners

Why Invest in Opportunity Zones?

Opportunity Zones (OZs) offer a unique chance to invest in real estate while benefiting from significant tax advantages. Created under the Tax Cuts and Jobs Act of 2017, this economic development tool provides substantial tax incentives for long-term investments in designated areas.

There are approximately 8,700 designated Opportunity Zones across the United States. Multifamily alone has over 440,000 units proposed, planned, and under construction in OZs, representing an estimated market value of $166 billion.

Discover how Pennington Partners & Co. can help you capitalize on these opportunities to maximize your returns.

Top Benefits:

  • Tax Deferral: Defer capital gains taxes triggered from the sale of any asset until December 31, 2026, with the ability to eliminate the gain through advanced planning.

  • Tax-Free Appreciation: Hold your OZ investment for at least 10 years, and any appreciation on the investment will be tax-free.

  • No Depreciation Recapture: Eliminate depreciation recapture after a 10-year holding period, unlike traditional real estate investments.

  • Comparison with 1031 Exchanges: Unlike 1031 Exchanges, which only defer taxes on real estate sales, OZs allow for tax deferral on various asset types and offer exclusion of new investment gains.

Compelling Opportunities in Opportunity Zones

Pennington Real Estate Partners (PREP) is a leading real estate investment platform, founded by Pennington Partners & Co. Our team has decades of experience and has managed billions in real estate investments. We offer structured equity investments, providing downside protection and significant upside potential.

  • Invest in new construction projects targeting mid-to-high teens returns over a three-to-five-year period, plus long-term upside.

  • Capitalize on development distress due to cost overruns and debt service issues with a pref-common equity structure to mitigate risk.

  • Take advantage of special situations when projects deliver, offering attractive short-to-mid-term returns without taking development risk.

Why Partner with Pennington Partners & Co.?

Pennington Partners & Co. is an award-winning multi-family office and investment advisor, managing over $3 billion in assets. Our track record includes launching successful investment platforms across real estate, private credit, private equity, and venture capital.