NEW YORK, Sept. 11, 2018 /PRNewswire/ -- New York based developer Youngwoo & Associates (YWA) and EQUITYMULTIPLE, an innovative commercial real estate investment startup, announced today a strategic partnership to create an Opportunity Zone Fund targeting projects across the United States that fall under new tax-advantaged investment provisions created by the 2017 tax reform bill. Long recognized as a catalyst for transforming underserved markets and revitalizing neighborhoods through transformative developments, YWA is uniquely positioned to develop within Opportunity Zones, delivering value to both investors and local communities in the process. The Youngwoo fund will be one of first of its kind under the new tax rules, and the first to offer individual investors the opportunity to participate directly through its partnership with EQUITYMULTIPLE. To date, individual investors have invested in over $700 million in commercial real estate transactions through EQUITYMULTIPLE's online investing platform.
"Finding underappreciated value in local markets has always been our focus, and Opportunity Zones are now providing a more tax efficient vehicle to attract investors into the areas where we're already developing. We have seen firsthand that a well-conceptualized mixed-use development can serve as a new Town Square for both locals and visitors to live, work and play. Partnering with EQUITYMULTIPLE will allow us to bring exciting and transformative projects throughout the country to a broader investor pool," noted Bryan Woo, Executive Vice President at YWA.
"We see the creation of Opportunity Zones as one of the biggest real estate investment opportunities in decades. Done correctly, the program can provide real value to both underinvested neighborhoods and individual investors, and we're fortunate to be able to partner with such a well-respected firm like Youngwoo & Associates," said Charles Clinton, CEO and Co-Founder of EQUITYMULTIPLE. "Providing individual investors with transparent and professionally-vetted commercial real estate opportunities is at the core of what we do, and our collaboration with Youngwoo will give our investors tax efficient opportunities alongside an innovative developer with a great history of improving underserved neighborhoods while delivering strong returns to investors."
Created by the 2017 tax reform law, the new legislation allows for tax-free reinvestment of capital gains into development projects, provided that the gain is placed into a qualified Opportunity Fund. The Funds may only be invested in neighborhoods designated by federal and local lawmakers as "Opportunity Zones" based on a combination of U.S. Census Bureau income data and state and local input. In addition to deferring tax on invested capital gains, investors can reduce their tax owed over time and pay no additional capital gains on their Opportunity Zone Fund investment if it's held for over 10 years.
Through its Opportunity Fund, YWA and EQUITYMULTIPLE intend to offer investors the chance to participate in developments in select markets throughout the country. YWA has demonstrated throughout its history that such projects can create a type of halo effect, delivering value that extends beyond the walls of the project itself to the surrounding neighborhood. With its Opportunity Fund and partnership with EQUITYMULTIPLE, YWA looks forward to offering a broad base of investors the opportunity it has prided its long history on – doing well by doing good through the revitalization of neighborhoods.
About Youngwoo & Associates, LLC
Based in New York City since 1979, Young Woo & Associates, LLC ("YWA") has distinguished itself as a leading real estate developer that can identify and be the first mover to capitalize on emerging lifestyle trends, applying innovative real estate solutions that emphasize creative design. The firm has developed over 8 million square feet and may be best known for groundbreaking developments like the Sky Garage and Pier 57 in Manhattan, but their 39 year history also demonstrates a strong track-record of success developing in underinvested neighborhoods. Most recently, YWA re-developed the historic Bronx Post Office into a retail, office and dining destination, which is set to open later this year. YWA is also soon commencing construction on a development in the rapidly growing Washington Heights neighborhood in Upper Manhattan. The hotel and office development project will be the most significant construction project in Washington Heights in 50 years. Over the years, YWA has received numerous design and building awards, and has been recognized for its excellence spanning from CNBC, The New York Times, The Wall Street Journal, and Forbes Magazine.
EQUITYMULTIPLE is a commercial real estate investment startup that provides individual investors with unprecedented online access to professionally-vetted private real estate transactions across property types and risk profiles. EQUITYMULTIPLE believes real estate investing can be transformed through technology by providing individuals a new level of transparent and efficient access to tailored, private market transactions. To date, individual investors have invested over $700 million in commercial real estate transactions through EQUITYMULTIPLE's online investing platform. EQUITYMULTIPLE is backed by renowned entrepreneur and investor Ken Pasternak and received its seed funding from Mission Capital, a leading real estate capital markets firm that has helped close over $70 billion in transactions. For more information, please visit https://www.equitymultiple.com/.