NEW YORK, Dec. 11, 2018 /PRNewswire/ -- SkyBridge Capital ("SkyBridge"), a global alternative investment firm, and EJF Capital ("EJF Capital"), a hedge fund and private equity fund manager, announce the launch of the SkyBridge-EJF Opportunity Zone REIT ("SOZ REIT"). SOZ REIT has a mandate to invest in U.S. Treasury-certified Opportunity Zones, which are low-income communities where recycled capital gains can receive favorable tax treatment.
The offering is structured as a private, non-exchange-traded REIT available to accredited investors at a minimum investment of $100,000 with 1099 tax reporting and quarterly distributions. SOZ REIT is expected to be diversified by geography, property type, and developer, focusing on both new development and redevelopment real estate projects. It began accepting investments from accredited investors as of December 1, 2018.
"We launched the SkyBridge-EJF Opportunity Zone REIT in response to demand from investors, who correctly see the OZ program as a chance to potentially generate attractive returns while having a positive societal impact," said Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital. "We worked with EJF to structure the product in an investor-friendly way to democratize access to this historic incentive."
Opportunity Zones were conceived during the Obama administration and passed into law with bipartisan support as part of the Tax Cuts and Jobs Act of 2017. The program allows investors to diversify their investments and reinvest in America's future while taking advantage of three powerful tax incentive structures, including:
- Deferral of capital gains: US taxpaying individuals or corporations with any capital gain – from the sale of any asset (e.g., stocks, real estate, a business) – can defer taxation on an unlimited amount of realized gains until year-end 2026 if the gain is reinvested within 180 days in a Qualified Opportunity Fund.
- Reduction of capital gains: Capital gain liabilities associated with the sale proceeds are reduced by 15% if Opportunity Zone investments are held for at least seven years. Capital gains liabilities are reduced by 10% if held for longer than five years and less than seven years.
- Tax exemption/exclusion: Investors pay no capital gains tax on new gains generated by a Qualified Opportunity Fund if held for more than 10 years.
"Our team's expertise in real estate and related investments, along with our relationships with regional and community banks, gives us an edge in sourcing and developing investment opportunities across multifamily, industrial, and hospitality," said Neal Wilson, Co-Founder and COO of EJF Capital. "We partnered with SkyBridge on opportunity zones because they understand the needs of mass affluent investors."
To be eligible for the program, census tracts must have a 20% poverty rate or median family income of less than 80% of the surrounding area. Governors then chose 25% of eligible tracts in their state to be certified by the Treasury Department as Opportunity Zones.
SkyBridge and EJF will be hosting a conference call today (December 11, 2018) at 2:30PM ET to introduce the Opportunity Zone REIT. Dial-in details are below:
Date: Tuesday, December 11, 2018
Time: 2:30 PM ET
U.S. Dial-In: (888) 902-6566
International Dial-In: (412) 317-5454
Passcode: 0494 159
About SkyBridge Capital
SkyBridge Capital is a global alternative investments firm with approximately $9.4 billion in assets under management or advisement as of November 2018. Addressing every type of market participant, SkyBridge's investment offerings include commingled fund-of-hedge funds products, customized separate account portfolios, hedge fund advisory services, and a long-only mutual fund. The firm is headquartered in New York and has offices in Palm Beach Gardens, London, and Seoul.
About EJF Capital
EJF Capital LLC is an SEC-registered, employee-owned alternative asset management firm headquartered outside of Washington, DC. EJF manages approximately $7.6 billion in various hedge fund and private equity fund strategies, including real estate and related investments, as of October 31, 2018. In addition, EJF manages approximately $2.7 billion as of October 31, 2018 in structured product, the underlying collateral of which is debt issued by small cap bank and insurance companies, REITs and real estate operating companies. The firm was founded in 2005 by Manny Friedman and Neal Wilson, along with a small team of professionals from Friedman, Billings, Ramsey Group, Inc. ("FBR"). Since inception, EJF has focused on regulatory-event-driven themes in the financial sector, including real estate.
Investor Relations Contact:
Copperfield Advisory, on behalf of SkyBridge Capital
SOURCE SkyBridge Capital