Based in Idaho, the Galena Opportunity Fund is a developer-driven investment fund leveraging its real estate development expertise to maximize investor returns by placing capital directly into residentially-anchored mixed-use developments in underserved markets.
Opportunity Zones are a new investment program in which investors can earn tax relief and tax deferral on capital gains invested into a Qualified Opportunity Fund (“QOF”).
This program was established by Congress as part of the Tax Cuts and Jobs Act of 2017 (the “Act”), Subchapter Z, to encourage community development through long-term investments in certain qualified zones. Each state governor could enroll in the program by designating up to 25% of its distressed census tracts as Opportunity Zones. For example, in Idaho twenty-eight census tracts were selected and later certified by the US Treasury, becoming Idaho’s Qualified Opportunity Zones (“QOZ”). The purpose behind designating these census tracts as QOZ is to stimulate economic development in areas that were less likely to see new development.
Capital gains invested into a QOF within 180 days can earn the following tax relief incentives:
01A deferral on current capital gains tax payment until April 15, 2027.
02A reduction in the original capital gain by 10% for investments held in the QOF for 5 years (if invested by December 31, 2019).
03A reduction of an additional 5% (for a total of 15%) of the original capital gain for investments held in the QOF for 7 years (if invested by December 31, 2019).
04No capital gains taxes on gains earned on an investment held in the QOF for at least 10 years. The investment can continue to accrue these tax-free gains until December 31, 2047.
For a fund to qualify as a QOF, at least 90% of its assets must be held in a Qualified Opportunity Zone. A QOF must measure and certify fund assets semiannually to comply with this ratio test. For real property investments QOFs must either place all the capital into a qualifying property within these measuring periods or set any capital aside for placement into a specific asset within 31 months, subject to specific requirements for proper compliance. For an investment to qualify, the QOF must place additional capital into a project that is at least equal to the value of the existing physical improvements at the time of acquisition within this 31 month window.
Galena Opportunity Fund “GO Fund” is an Idaho-based Qualified Opportunity Fund. GO Fund is unlike other Opportunity Zone funds by creating a direct link between Investor capital and the real estate project because the GO Fund management team is also the development team, reducing the time the equity investment sits idle.
Go Fund’s expertise is in developing technically complex and tax-incentivized new and redevelopment mixed-use projects. This straight to the project approach allows for a direct conduit for investments into qualifying real estate assets leading to higher returns for investors. GO Fund Assets will be spread throughout the Northwest with a focus on Idaho-based assets and developments within 275 driving miles from an Idaho border. The majority of assets invested in will be multi-family or residentially anchored developments. GO Fund will seek to distribute returns to investors as quickly as possible. GO Fund will leverage investor’s capital where appropriate with non-recourse debt to reduce Investor’s exposure and obtain higher Internal Rate of Returns. GO Fund is for ACCREDITED INVESTORS ONLY. For more information about the fund please contact us through the information provided below.
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