ADU OZ Fund, LLC Launches 1st Opportunity Zone Fund for Accessory Dwelling Units seeks Accredited Investors
The Fund is launching their Series A Round raising $50,000,000
ADU OZ Fund, LLC launches 1st Opportunity Zone Fund for Accessory Dwelling Units (ADU’s) and seeks accredited investors. The Fund is launching its Series A Round raising $50,000,000.
The ADU OZ Fund will construct multi-family workforce and affordable housing using accessory dwelling units and other housing options to produce residual income through the monthly rental cash flow and equity appreciation upon sale in 10-15 years.
Executive Summary
ADU OZ Fund LLC is a Qualified Opportunity Zone Fund creating new affordable housing in San Diego and other suitable markets. They target and acquire 1–4-unit properties within zoning designations that allow the addition of multiple ADUs for more housing. Once acquired, the team obtains entitlements to add the units, rehab the existing structures, and complete the necessary construction. Upon construction, the Fund rents the units, refinances the property, and reinvests into new projects.
The team’s experience in the Southern California real estate market is crucial for analyzing ADU and other value-add opportunities in San Diego. The team consists of a real estate and business attorney, licensed contractor, real estate broker, and close relationships with design and construction professionals. Maximizing the social impact, the team is partnered with non-profit and other organizations that share a common goal to address homeownership and housing for the disenfranchised.
The social impact is real because the need is significant. Using a combination of rehab, new construction, and modular homes, the Fund will increase occupancy substantially. Long-term, the Fund will scale this model into other markets building sustainable subdivisions and apartment complexes using options like ADUs, micro-units and modular homes. ADU OZ Fund, LLC perfectly captures the spirit of the Opportunity Zone to revitalize housing options through creative, sustainable investments.
Mission Statement
Using community resources and collaboration, ADU OZ Fund strives to build quality homes for new affordable rental and homeownership opportunities.
Investment Thesis
ADU OZ Fund will target and acquire 1–4-unit properties within opportunity zoning designations that allow the addition of multiple ADUs for more housing. Once acquired, the Fund obtains entitlements to add the ADUs, rehabs the existing structures, and completes the necessary construction prior to renting during the necessary hold period. After adding more housing, the next step is to incorporate new infrastructure and ancillary businesses to support the housing growth. Long-term, the team will scale this model into other markets building sustainable apartment complexes and subdivisions using options like ADUs and modular homes.
Operation: Adding Dwelling Units, Jobs and Prosperity
Notable Fund Projects
Florence St, San Diego 92113
Originally a 2-bed/1-bath house with an attached garage, we are turning the home into a 3-bed/2-bath, converting the garage into a 2-bed/1-bath accessory dwelling unit (ADU), and adding an additional eight 1-bedroom ADUs in the backyard. For the backyard, we will include parking, a communal space, and a laundry space. Already under construction with the rehab and ADU conversion.
S Gregory St, San Diego 92113
Vacant raw land with the goal to construct a primary residence (2-bed/1-bath) and add 7 micro-unit ADUs. Under development.
Ocean View Blvd, San Diego 92113
Mixed-use commercial/residential property that is prime for major development. Scope of work includes rehabbing existing structures, constructing multiple new residential units with a first-floor retail component. Amenities would include parking, a communal space and designated laundry on-site.
Fund Value & Vision
Like other US markets, San Diego, California has a huge housing need with high rents and high appreciation. More importantly, California and San Diego’s laws have opened regulations to allow unprecedented housing development. That combination allows the Fund to enter this high value market and capitalize on both steady monthly rents and equity appreciation upon sale.
Fund Impact
The Fund will have an enormous social impact using housing innovations like ADUs, micro-units and modular homes to address different specific housing needs for vulnerable groups (ex. veterans, single mothers, homeless and disabled individuals). As the Fund provides more housing, more possibilities arise for ancillary businesses and other opportunities for growth. The goal is to use the Fund’s early successes in San Diego as an example to educate other markets needing similar solutions. In addition, the Fund will work with local contractors and other professionals to build our projects. There is extra value in knowing the money invested in the Fund will circulate through and stay in the communities invested.
Why ADU OZ Fund?
Experienced team with 20+ combined years of legal and construction experience in the real estate community.
Partnered with some of the top Opportunity Zone regulatory and compliance experts in the United States.
Fantastic value-add real estate investment opportunity with significant annual cash flow and high equity appreciation.
Undeniable social impact by using local minority-owner development teams to create new affordable rental and homeownership options for the disenfranchised.
Opportunity Zones & Funds
The OZ Opportunity
Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged. With even more tax break incentives along the way at both 7 years and 10 years.
Investor Opportunity
10 Years – Tax Free Growth
If OZ investment is sold at exit, generating new capital gain for the investor, the new gain would be tax-free if sold after a hold period of at least 10 years.
The Vision of Opportunity
10 Year Anniversary – 100% Step Up to FMV at time of sale.
Initial Investment into Fund – 100% Deferment of Future Gain on Federal Capital Gains if held 10 years.
QUALIFIED OPPORTUNITY ZONES
The Tax Cuts and Jobs Act of 2017 created Qualified Opportunity Zones (“QOZs”) to provide potentially significant tax benefits to investors who re-invest capital gains into long-term investments into communities designated for economic development. There are over 8,500 QOZs across all US states, Washington DC, and Puerto Rico. They offer investors the ability to positively impact communities struggling to attract capital to generate sustainable economic opportunity for their communities.
QUALIFIED OPPORTUNITY ZONE FUNDS
A Qualified Opportunity Zone Fund (“QOF”) is an investment vehicle which is organized as a corporation or partnership for the purpose of investing (at least 90% of its assets) in qualified opportunity zone asset or businesses.
A qualified opportunity zone asset/property can be (so long as acquired after December 31,2017):
Stock in a domestic corporation that is a QOZ business
Any capital or profits interest in a domestic Partnership that is a QOZ business.
Tangible asset used in the trade or business of a QOZ business, where the QOF substantially improves the asset.
QOZF BENEFITS TO THE TAXPAYER / INVESTOR
Taxpayers may defer paying tax on capital gains, if such capital gains are invested in a QOF, within 180 days from the gain. Any taxpayer that holds its investment for a minimum of 10 years, can achieve no capital gain tax on the appreciation of its investment.
Funding Team:
Adam Stone – CEO & Fund Manager
Adam is a licensed Real Estate Broker. (DRE 02034122) and member of the California Bar (SBN 285524). His expertise in various aspects of both residential and commercial real estate including acquisition, management, entitlements, litigation, joint ventures, municipal codes, and San Diego zoning and ordinances. He has completed over 100 transactions since 2015.
Matt Williams – Fund Manager
A retired Navy veteran, Matt is a Construction Supervisor and builder with vast experience in ground up construction and luxury home building. During his tenure, he has managed and raised multi-millions of dollars in assets, utilized in construction projects, in the Pennsylvania, Georgia, California and Texas markets. Matt also holds his MBA in Business Management.
Fund Terms
Status: Open to Investors
Type of Fund: LLC
Asset Classification: Multiple Assets
Active Potential Investments: 3
Fund Administration: OZInvested.com
Anticipated Returns: +20%
Series Round A: $50,000,000
Total Fund: $250,000,000
Minimum Subscription: $50,000
Please visit our website for more information at https://ADUOZFund.com/
Contact:
ADU OZ Fund, LLC
Adam Stone – CEO and Fund Manager
Email: Adams@aduozfund.com
https://ADUOZFund.com/
Phone: 619-704-7724
DISCLAIMER:
Articles featured on this website are for informational purposes only. This is not an offer to sell nor a solicitation to buy ADU OZ Fund, LLC. That can only be done by our current Confidential Private Placement Memorandum (“CPPM”). Securities offered by ADU OZ Fund, LLC. For accredited Investors only. Limited liquidity. The shares being sold in this offering have not been approved or disapproved by the Securities and Exchange Commission or any state’s securities division. Nor has the Securities and Exchange Commission or any state securities department passed upon the accuracy or adequacy of the CPPM, or the disclosures provided therein. Any representation to the contrary is a criminal offense. The information contained in this website is for general information purposes only. The information is provided by ADU OZ Fund, LLC and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is strictly at your own risk.
Contact Author
MARK ELLIOTT POLITI
Eazy Do It, Inc.
3102996690
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