Home Prices in St. Petersburg Florida Keep Rising

According to the U.S. Census Bureau’s Vintage 2022 population estimates, “Florida is the fastest-growing state in the United States, with a population increase of 1.9% to 22,244,823 between 2021 and 2022. Florida has been a consistent top gainer in recent years, and 2023 appears to be another year of solid net population gains. For the third-most-populous state to also be the fastest growing is notable because it requires significant population gains.”

The trend to relocate to Florida is attractive when comparing other states with high taxes and operating costs that are motivating companies to move to Florida. According to a recent article from Business.com, “Florida has become a prime location for newly formed businesses and for businesses relocating from other states. In fact, out of the 5.8 million new business applications filed nationally from January 2021 to January 2022, 12% were in Florida.” Millennial and Gen Z workers are drawn by the rising number of start-up businesses, as well as established companies, moving their headquarters and operations to the Sunshine State.

Florida Fastest-Growing State for First Time Since 1957 (census.gov)

The state’s ideal climate, pro-business tax structure and skilled workforce makes Florida an appealing relocation option for out-of-state firms looking to expand or seeking a new location. Additionally, rising costs for both businesses and workers in areas such as Silicon Valley, Silicon Beach and New York City make these locations prohibitively expensive, leading many companies and workers to consider relocating to Florida.

Why Are So Many Companies Moving to Florida? | Business.com

The pandemic triggered a vast number of business owners to reconsider their present corporate locations. Many decided to leave behind dense and costly northeastern areas in favor of a more laid-back lifestyle in sunny Florida. Remote living inside small apartments during social distancing periods has weighed on workers not suited for long periods of isolation, and others find the idea of dwellings with year-round outdoor access an extremely attractive living option.

In a WalletHub study, “Florida ranked fourth in the country for the highest average growth in the number of small businesses. Outside of the currently difficult economic conditions, there are plenty of other reasons that startups fail, with a “bad location” being among the most common. Choosing the right state for a business is therefore crucial to its success. A state that provides the ideal conditions for business creation — access to cash, skilled workers and affordable office space, for instance — can help new ventures not only take off but also thrive.”

Best & Worst States to Start a Business (wallethub.com)

We’ve recently highlighted Belpointe OZ’s first major Class-A multifamily residential project in downtown Sarasota that will open its doors in the first half of this year. Approximately an hour drive north, Belpointe is readying its second Class-A multi-family luxury apartment project for move-in completion in early 2025.

What is the housing market like in St. Petersburg today? In a single word, tight. In December 2023, St. Petersburg home prices were up 2.0% compared to last year, selling for a median price of $403K.

From an investment standpoint, it is our view that the current price of Belpointe OZ (NYSE American: “OZ”) Class A units at $64.93 as of January 19, is wholly dislocated from the Net Asset Value as of September 30, 2023, of $370.49 million, or $103.50 per Class A unit. If Belpointe OZ’s projects were simply in the planning stage, then a steep discount is debatable. However, Belpointe OZ has over 2,500 units in its development pipeline throughout four cities, representing an approximate total project cost of over $1.3 billion, one of which is set to open their doors for new tenants in Sarasota in early 2024.

It’s 2023 tax preparation season and the year-end melt up for the Magnificent Seven and other mega-cap tech stocks riding the torrid bond market rally of Q4 2023. Investors seeking to shelter capital gains realized during the past five months in 2023 can do so with the purchase of interests in a Qualified Opportunity Zone Fund (“QOF”) using the 180-day lookback feature of the federal guidelines for Opportunity Zone Fund investing. It’s a sound planning tool for offsetting 2023 taxes owed on the sale of a variety of assets, and now is the time to get informed on just how to take full advantage of this highly unique feature to shelter capital gains.

Unlike many private QOFs, investing in Belpointe OZ (NYSE American: “OZ”) is as simple as buying any other publicly traded equity. If you purchase Belpointe OZ’s Class A units in the open market, there is no subscription agreement or investor certification required; you can simply purchase Class A units through any brokerage account. Belpointe OZ offers the same Opportunity Zone benefits as any private structure. To properly defer your reinvested capital gains, your accountant will need to file IRS Forms 8949 and 8997 with your tax returns. You will need Belpointe OZ’s EIN which can be found here: Belpointe OZ EIN

Further, in its effort to disrupt the U.S. real estate industry, Belpointe OZ is charging among the lowest fees in the market, including:

• No investors servicing fees;
• No disposition fees;
• 0.75% annual management fee; and
• 5% carried interest.

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.

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