Why Belpointe OZ?

Belpointe OZ Disruptors

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Public Market Liquidity

Belpointe’s Class A units are listed on the NYSE American under the symbol “OZ.” As a result, OZ is the first and only Qualified Opportunity Fund listed on a national securities exchange. Having its Class A units listed for trading on NYSE provides holders of OZ’s Class A units with liquidity in respect of their investment and greater control over the timing of purchases and sales of their Class A units, unlike typical private real estate vehicles which can charge penalties of up to 12% for its investors who exit before maturity.

Reduced Management Fee

OZ’s manager is paid annual management fees of only 0.75% of its net asset value, which is significantly less than the management fees of 1.5%-2.0% typically charged by other traditional private real estate funds, REITs and other traditional real estate investment platforms.

Minimal Carried Interest

OZ’s carried interest is only 5%, where other real estate vehicles typically charge their investors a carried interest fee of 20% or more.

Acquisiton of Stabilized Assets

Due to being a publicly traded partnership, OZ can acquire other private Qualified Opportunity Funds after they have stabilized their assets. This eliminates what we believe is the biggest risk in Opportunity Zone investing, the construction risk.

Public Company Transparency

OZ is a reporting company subject to the periodic and current reporting requirements of the federal securities laws, requiring it to file, among other things, annual and quarterly reports (including financial statements, financial statement schedules and exhibits) and current reports disclosing material events. As a result, unlike private real estate investment platforms, investors in OZ’s Class A units will have access to regular updates regarding its performance.

Greater Asset Diversification

OZ intends to hold a larger and more diversified portfolio of real estate and real estate-related assets than most other qualified opportunity zone real estate investment platforms. Greater diversification offers investors in OZ’s Class A units the potential to achieve greater returns at a lower risk.

Public Market Accessibility

OZ is currently listed on the NYSE American, which allows for the following investor benefits:

  • Faster Liquidity:  Being listed on a national securities exchange provides the OZ investors with the potential for ultimate exit liquidity directly on their individual 5, 7, or 10 year clock. This is much sooner than typical private real estate funds because investors in private structures generally do not have access to the public resale markets and investors in private real estate funds typically have to hold their investments for up to 15 years.
  • Investor Controlled Exits: Being listed on a national securities exchange gives OZ investors the potential to control the ultimate exit (sale timing and amount) of their investments. Whereas investors who invested through private real estate investment vehicles generally do not have access to the public resale markets, therefore, in many cases, they must rely on their fund managers to decide when their investments should be sold and when their capital should be distributed.

Development Expertise

OZ’s real estate team is made up of former AvalonBay® developers and construction managers. This means that OZ’s executives have “boots on the ground” experience and know-how to maximize project efficiency and streamline costs with every phase of the real estate development process and investment. By having this expertise and specialization, we feel that we are better positioned to deliver greater returns on our project investments and for investors.

Investment Platforms
(Using Local Knowledge With OZ’s Expertise And Systems)

  • Acquisition of other QOF’s with stabilized assets: OZ’s unique structure as the only publicly traded partnership allows for the acquisition of other Qualified Opportunity Funds that have already stabilized assets.
  • Franchise Platform: regional affiliated OZ development companies in specific regions throughout the US that are managed by local OZ development partners.
  • Programmatic Platform: joint ventures with established regional developers that have an exclusive co‐sponsor partnership with OZ and its affiliates on multiple investments.
  • Traditional Joint Venture and Co‐Sponsor Platforms: joint venture investments with an OZ affiliate and/or local developers on a non‐exclusive deal‐by‐deal basis.

Regulatory Disruptors

Capital Gain Deferral

  • An eligible investor can reinvest of recognized capital gains within 180 days in (NYSE American: OZ), and elect to defer such capital gains until the earlier of December 31, 2026 or the sale of OZ Class A Units.
  • Any Capital Gain in Any Asset Class, including short-term capital gains.
  • Only Capital Gains need to be invested and shall receive the tax benefits (No Basis).

Capital Gain Reduction

  • If an eligible investor holds (NYSE American: OZ) for 5 years on or prior to December 31, 2026, the investor reduces its reinvested capital gains by 10%.

Capital Gains Exemption

  • No Capital Gains Taxes on the appreciation of (NYSE American: OZ), if an eligible investor holds OZ for at least 10 years.

No Depreciation Recapture

  • No depreciation recapture if an eligible investor holds its OZ Class A Units for at least 10 years.

20% Pass-Through Deduction for Dividend Income

  • If the distribution yield exceeds the amount of depreciation that is passed through to unitholders, (NYSE American: OZ) eligible investors will receive a 20% tax deduction on the income above that amount under Internal Revenue Code Section 199A.