The Only Publicly Traded Opportunity Zone Fund

The stock market is giving investors another chance to book profits on some slower-than-forecast economic data. Similar to the summer rally that fizzled out, this too could be another bear market head fake. But time will tell with earnings season, an FOMC meeting and the midterm elections all on deck over the next month.

We’ve been getting peppered with calls concerning Hurricane Ian and whether there has been any significant impact on our projects in the southeast. In case you missed it, we issued a press release on Monday, with the main message being that:

“[F]ollowing an initial assessment, [our] Florida assets have incurred no or minimal damage as a result of Hurricane Ian.

We are working closely with our construction, development and property management teams as well as with our tenants to fully assess all damages and coordinate a return to full operations as quickly as possible … .

While we are still in the process of contacting all of our teams and tenants to make sure they all came through the storm safely, we are pleased that our assets have not sustained any significant damage as a result of Hurricane Ian.”

This is good news and should allow our construction teams to keep on schedule, because, with mortgage rates now pushing above 6.8% on a national basis, I believe the demand for rental properties is and will remain robust, to say the least. It will be very interesting to see the rental component to the CPI report due out on October 12.

One of the newer trends that I believe Opportunity Zone real estate will greatly benefit from is the conversion of office space to residences. A recent article published by the news site Axios, notes that cities across the country are considering office-to-housing conversion projects as a solution for both the current housing shortage and high vacancy rate for many office buildings in desirable areas.

I believe these kinds of office-to-housing conversion projects will bring about new opportunities for Qualified Opportunity Zone Funds (“QOFs”)—where the rezoning of properties may be tied to state and city financial incentives which could be the catalyst for new opportunity zone investments.

It’s an exciting time for us at Belpointe PREP, LLC (NYSE American: “OZ”), the only publicly traded QOF. What may make our fund appealing is that we are striving to diversify, by acquiring, developing and owning multiple properties in select cities where our research shows there is strong migration and employment trends, such as Sarasota, Florida, and Nashville, Tennessee, where we already have projects well underway. Other markets we are looking at include Raleigh, Durham, and Charlotte, North Carolina, and St. Petersburg, Florida.

For those investors that were able to capture the fullness of the summer rally, and who have a desire to defer capital gains taxes, while there may be hundreds of QOFs to choose from, Belpointe PREP, LLC (NYSE American: “OZ”), is the only publicly traded QOF where, if you purchase units in the market, there is no minimum investment.

What’s more, because “OZ” is a listed company, transparency is considerably higher than that of many privately managed QOFs. In addition, while most other QOFs have limited or restrictive redemption features, OZ unitholders can buy and sell Class A units in the open market.

One more key item, which I think is of huge importance, is that unitholders of OZ are not at risk of receiving and being liable for any future capital calls. Capital calls are an unfortunate feature many investors may regularly face in acquiring, developing and renovating private opportunity zone properties. Liquidity, no risk of capital calls and diversification put OZ in the class of “best Opportunity Zone Funds” in my view.

Investing into a QOF, like Belpointe PREP (NYSE American: “OZ”), allows an investor to defer the tax payment on invested capital gains through the earlier of tax year-end December 31, 2026, or the date on which they sell their investment. Plus, all income and appreciation from the time one invests into a QOF through December 31, 2047, is potentially tax-free. We spell out how this alternative can work for you in our updated white paper.

Have questions about how Belpointe PREP (NYSE American: “OZ”) can provide opportunities for investment appreciation and income and help you or your clients to defer or eliminate capital gains tax obligations?

Call or email us and we’ll take the time to answer all of your questions about Belpointe PREP (NYSE American: “OZ”) and how reinvesting capital gains into a QOF can be utilized to offset an investor’s tax obligation.

You can contact us at 203-883-1944 or IR@belpointeoz.com.

Cody H. Laidlaw
Editor-in-Chief
Belpointe OZ
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com

Disclosure: Cody H. Laidlaw is the Chief Investor Relations Officer. Cody is also an investment advisor representative with Seaside Advisory Services, Inc. (d/b/a Seaside Financial & Insurance Services), a SEC registered investment adviser offering advisory accounts and services, and holds a long position in Belpointe PREP, LLC’s Class A units.

Important Information and Qualifications

Belpointe PREP, LLC (“Belpointe PREP”) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offer and sale of up to $750,000,000 of Class A units representing limited liability interests in Belpointe PREP. You should read Belpointe PREP’s most recent prospectus and the other documents that it has filed with the SEC for more complete information about Belpointe PREP and the offering

Investing in Belpointe PREP’s Class A units involves a high degree of risk, including a complete loss of investment. Prior to making an investment decision, you should carefully consider Belpointe PREP’s investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in Belpointe PREP’s Class A units. To view Belpointe PREP’s most recent prospectus containing this and other important information visit sec.gov or belpointeoz.com. Alternatively, you may request Belpointe PREP send you the prospectus by calling (203) 883-1944 or emailing claidlaw@belpointe.com. Read the prospectus in its entirety before making an investment decision.

This communication, including any links embedded herein, may not be distributed in any jurisdiction where it is unlawful to do so. Nothing in this communication is or should be construed as an offer to sell or solicitation of an offer to buy Belpointe PREP’s Class A units in any jurisdiction where it is unlawful to do so.

Neither Belpointe PREP nor any of its affiliates provide investment or tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should consult their own investment and tax advisers concerning the U.S. federal, state and local income tax consequences, as well as any tax consequences under the laws of any other taxing jurisdiction, in relation to their personal tax circumstances, which may vary for prospective investors in different tax situations.

This communication may contain estimates, projections and other forward-looking statements, typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond Belpointe PREP’s control. Therefore, we caution you against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including federal securities laws, Belpointe PREP does not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.

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