Qualified Opportunity Zones: Premium Returns with Exceptional Tax Benefits

Our commitment to high-quality QOZ strategies can be seen in our recent success story in The Otis.  This property is a 261-unit multifamily development in a Qualified Opportunity Zone on Indianapolis’s east side.  Although the project began during the COVID pandemic, construction costs were kept in line with expectations, and the property was leased out much faster than anticipated.  We were then able to complete a cash-out refinance on the property using a 10-year, fixed-rate loan, locking in low interest rates before they began to increase.  18Sixty and all of our co-investors received their entire initial capital back while maintaining their equity position in the property and retaining their tax benefits.  

We attribute our ability to make stellar investments, such as our investment in The Otis, to the deep-rooted industry relationships that our parent company, the Hageman Group, and we have established.  Our reputation in the industry precedes us, which is why developers seek us out when they need capital, creating a best-in-class pipeline of investment opportunities.  We are then able to rigorously vet and hand-pick only the best investment opportunities that have the highest likelihood of generating optimal returns for both 18Sixty and our co-investors.

At 18Sixty, we stand behind every project that we accept capital for, which is why we invest alongside our co-investors in every single project. We believe the real estate syndicator model is fundamentally flawed, especially when investing in QOZs.  These specialized strategies can provide tremendous returns and tax benefits, but only if the project is thoroughly vetted and underwritten.  That’s why, when we underwrite QOZ projects, we consider the tax benefits an afterthought; we would invest in these projects even if they didn’t offer additional financial benefits.