Vibrant Florida Business Environment To Outpace U.S. Average

It looks like the Floridian economy is set to outpace the national average once again, with the Florida Legislature Office of Economic and Demographic Research forecasting 2.8% growth over the 2024 fiscal year, as compared to the 1.6% national growth rate forecast by the Bureau of Economic Analysis.

We believe the draw of attractive jobs in Sarasota continues to keep a firm bid under the housing market. According to data complies by Redfin, as of March 2024, the median home price in Sarasota stands at approximately $537,000, which is approximately 22% higher than the national average of approximately $420,000. Among the top metropolitan centers contributing to the influx of new residents are New York, Washington D.C., and Chicago. We think Sarasota offers a highly attractive lifestyle that affords newcomers seeking to move to the downtown district an upscale quality of life in a vibrant city atmosphere.

We think for those seeking to lease a residence in downtown Sarasota, they will experience a rental landscape that is robust, where demand for luxury apartments is quite strong driven by a set of secular factors. We think many new residents moving to the city are seeking high-end amenities to experience an upscale residential lifestyle. Steady population growth of discerning future tenants is likely to lead to greater demand for newly built Class A full-featured multifamily apartments that provide on-site resort-style features, services, and private parking.

Aside from those making downtown Sarasota their primary residence, the city is a prime destination for seasonal residents and retirees that desire proximity to top entertainment venues, dining, high-end shopping, cultural events, and waterfront views to fully enjoy and elevated living experience.

To meet this anticipated demand for luxury living, Belpointe OZ is opening its doors this month to new tenants at its Aster & Links multifamily community which is intended to bring an unparalleled urban living experience to residents, offering a comprehensive array of amenities, including a clubroom, fitness room, center courtyard with a heated saltwater pool, and an exceptional selection of rooftop amenities. The rooftop spaces will feature community rooms, private dining areas for exclusive events, outdoor grills, while providing residents with picturesque views within a vibrant downtown setting.

The 10-story, two-tower Class A full-featured apartment complex—consisting of 424 units, 900 parking spaces and 55,000 square feet of essential retail shopping occupying the first floor, and anchored by a Sprouts Farmers Market—is located in the heart of the city, adjacent to waterfront activities and easy access to world famous Siesta Key, St. Armands Circle and the barrier island of Longboat Key with its miles long beaches on the Gulf of Mexico.

On February 29, Belpointe OZ announced its unaudited quarterly net asset value (“NAV”) as of December 31, 2023 of $365.43 million, or $100.88 per Class A unit. This means Belpointe OZ’s Class A units are currently trading at around a 40% discount to their NAV. We believe that the market at large will ultimately recognize this disparity and that investors who purchase and hold Class A units at their current price will be rewarded for doing so.

With the first of Aster & Links' two towers near completion, Belpointe OZ currently expects the second tower to open for new move ins during the second half of 2024. Greystar Real Estate Partners, LLC, one of the largest global property management companies, is managing the new tenant application and move in process.

Population growth in Sarasota remains steady, and in our view, holds a bright future for investors seeking to invest in this thriving city. Investors and future tenants can now preview and pre-lease the available units and floorplans on the updated Aster & Links website, which displays the full-featured, Class A luxury apartment layouts with living spaces from 865 to 2,820 sq. feet, one-bed/one-bath to four-bed/three-and-a-half-bath and a wide array of options to fit the needs and wants of all future tenants. Below is a rendering of a 2,820 sq. foot two-level penthouse that will occupy the topmost floors of the Aster building.

Below we have included two photos of 1000 First Avenue North in St. Petersburg, Florida, another property in Belpointe OZ’s portfolio that is roughly 40% complete.

1000 First is being developed into a 15-story high-rise building named “Viv.” Viv will be comprised of two 11-story residential towers above a 4-story parking garage, featuring approximately 269-apartment homes consisting of studio, one-bedroom, two-bedroom and three-bedroom units, with approximately 15,500 square feet of retail space located on the first level.

We currently anticipate amenities will include a clubroom, fitness center, courtyard with a swimming pool, shared working space and a leasing office. 1000 First is located in the downtown district of St. Petersburg, one mile west of Tampa Bay and the downtown waterfront district and features direct access to downtown amenities such as public parking, restaurants, museums, and cultural sites.

We believe that many people initially invested in Belpointe OZ’s (NYSE American: “OZ”) Class A units because of the attractive tax benefits provided by the Opportunity Zone program, but we want to remind investors that Belpointe OZ is not a public REIT or typical real estate partnership where stabilized and cash-flowing assets can be contributed day one. Under the Opportunity Zone program Qualified Opportunity Funds (“QOFs”) such as Belpointe OZ must invest in ground-up developments, where cash flow generally takes a number of years to achieve.

In our view investors seeking a discounted real estate investment opportunity should consider exploiting the 40% discount between the current market price of Belpointe OZ’s (NYSE American: “OZ”) Class A units and its NAV that stood at $100.88 per unit as of December 31,2023, notwithstanding the tax benefits that Belpointe OZ, as QOF, has to offer. What’s more, investors do not need capital gains to take advantage of the NAV-to-Class A unit price disparity. However, without investing capital gains investors will not qualify for any of the Opportunity Zone program tax benefits.

Belpointe OZ

255 Glenville Road

Greenwich, CT 06831

T: (203) 883-1944

E: IR@belpointeoz.com

The information in this communication is for illustrative, educational and informational purposes only and is subject to change. Nothing in this communication is or should be construed as an offer to sell or the solicitation of an offer to buy any securities. Offers may only be made by means of a prospectus.

Belpointe PREP, LLC (“Belpointe OZ”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Prior to making an investment decision, you should read Belpointe OZ’s prospectus and the other documents that it has filed with the SEC in their entirety, and carefully consider its investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in the offering. Copies of these documents can be obtained free of charge from www.sec.gov or investors.belpointeoz.com or from any broker-dealer participating in the offering.

The information in this communication should not be relied upon as investment or tax advice. You should consult with your own investment and tax advisers concerning the federal, state and local income tax consequences of purchasing, owning or disposing of securities in the offering, and of Belpointe OZ’s election to qualify as a partnership and qualified opportunity fund for federal income tax purposes. There is no guarantee that Belpointe OZ will continue to qualify as a partnership or qualified opportunity fund.

Past performance is not an indicator or a guarantee of future performance. An investment in the offering to which this communication relates involves a high degree of risk, including a complete loss of your investment, and may not be suitable for all investors. The price of Belpointe OZ’s securities will fluctuate in market value and may trade above or below net asset value. Brokerage commissions and expenses will reduce returns.

The offering to which this communication relates is being made on a best-efforts basis on behalf of Belpointe OZ through Emerson Equity, LLC, Member FINRA, SIPC, as managing broker-dealer.

©2024 Belpointe PREP, LLC. All rights reserved.