One of our clients reached out to us wanting to know more about the tax benefits of Opportunity Zone investing because they just had a major capital gain event. Our track record in Opportunity Zone investing across the country was enough for our clients to trust our expertise and hire us to provide this service.
Our Opportunity Zone expert Axel Adler took point in helping our clients locate the perfect OZ property. He put together a list of qualifying properties across the United States within various asset classes in order to form an expert opinion on which investment would be right for them.
Upon realizing which property was “The One”, the seller disclosed to us that he wanted to work with a group that would move quickly and efficiently. Our buyers were at ease knowing that Centennial Advisers could follow through on those grounds. On top of that, Axel and Centennial Advisers devised the perfect terms that ultimately put our buyer in control of the deal: an all-cash close with a 14-day due-diligence and 3 day close.
The biggest hurdle in this deal was timing the closing of the property. Supply chain problems emerged during COVID-19 lockdowns due to shifts in demand, labor shortages and structural factors. The buyer’s counsel and the seller’s counsel cooperatively worked together to make sure the property was as close to completion as possible and closed pre-Certificate of Occupancy.
The subject property is located in the Tahoe-Reno Industrial Center which is the largest industrial center in the nation. It is made up of 107,000 acres (160 square miles). Our buyers were able to acquire a new construction called Commercial Metals Company (CMC) that operates a total of 19,200 SF. CMC is the nation’s largest manufacturer of steel reinforcing bar, a global leader in concrete reinforcement, and is part of the S&P 400. As of Dec. 3, 2021 CMC’s market cap is $2.6 trillion.
Our clients were able to save a total of $8,370,000 in capital gains tax because of the opportunity zone investment.