Continued Demand for Vibrant Downtown Living Experience

Heading into early fall, the forecast for the luxury apartment rental market in Sarasota, Florida, looks to us to be quite healthy. As of August 2024, the 12-month preliminary growth rate for white collar jobs in the North Port-Bradenton-Sarasota, Florida area remained steady at approximately 1.8%, despite many of the nation’s largest cities seeing a pause in hiring.

Moreover, over the past year a number of top businesses throughout the nation have indicated interest in relocating to Sarasota County. The region’s business-friendly climate, lack of state income tax, fantastic beaches and beautiful coastal life are some of the main driving forces for companies seeking a new destination to call home.

We’re not the only ones with this viewpoint either. Recently, Sean Snaith, Director of the Institute for Economic Forecasting at the University of Central Florida, commented that “Florida is continuing to outperform the national economy … And for the most part, if people are seeking the work, there are jobs to be had.”

In addition, in his annual remarks to the Sarasota County Commission in connection with their fiscal year 2025 budget planning process, Snaith also indicated that “[i]f there is an area of concern [in the Florida real estate market] it is commercial real estate, not including the apartment market” which he indicated “continues to thrive thanks to a continued housing shortage.”

This comes as no surprise to us either, as is the case with most hot job markets in sunny places, home affordability is a major challenge. So much so that according to Realtor.com, the median listing price for a home in Downtown Sarasota is currently sitting at $1.2 million; with the median sale price per square foot in the area around $712, which has risen by 4.2% since last year. That price buys a 2 bedroom, 2 bath 1,800 condo in a high rise.

Taking all of this into account, it is no wonder that we are continuing to see robust demand for Class A luxury apartments.

Belpointe PREP, LLC (“Belpointe PREP”) (NYSE American: “OZ”) is currently actively signing on new tenants at its Class-A high-rise full-featured luxury multifamily community, Aster & Links, in downtown Sarasota, Florida, a major asset that could be stabilized and potentially generating cashflow within the next 18 months.

It’s an exciting time for Belpointe OZ, Sprouts Farmers Market, Aster & Links’ first-floor tenant, recently opened its doors benefiting the community at large as well as Belpointe OZ investors by continuing to elevate this opportunity zone within one of the most vibrant regentrification areas in an economically strong and desirable downtown district.

As of August 30, 2024, Belpointe PREP, LLC (“Belpointe OZ”) (NYSE American: “OZ”), the only publicly traded qualified opportunity fund (“QOF”), announced its unaudited quarterly net asset value (“NAV”) as of June 30, 2024, of $356.78 million, or $98.24 per Class A unit. In our view, investors seeking a discounted real estate investment opportunity should consider exploiting the disparity between the current market price of Belpointe OZ’s (NYSE American: “OZ”) Class A units and its NAV, notwithstanding the tax benefits that Belpointe OZ, as a QOF, has to offer.

We believe that investors seeking hard real estate assets with income-producing potential, trading at a steep discount to NAV and located within one of the fastest growing states in the U.S., should give thought to adding Belpointe OZ’s Class A units to a diversified portfolio of investments.

Investors and future tenants can now preview and lease the available units and floorplans on the updated Aster & Links website, which displays the luxurious 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, and with financing now secured for Viv, Belpointe OZ’s second Class A high-rise full-feature multifamily community in downtown St. Petersburg, Florida, that project set to come online and should be stabilized soon thereafter.

Tech investors in particular seem to be enjoying generational wealth-building capital gains in leading AI stocks. It might be time to consider sheltering some of those gains and potentially compounding them in a tax-deferred QOF that trades on the NYSE.

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.