Sortis Capital | Opportunity Zone Fund, zero tax Investments

Sortis Opportunity Zone Fund

Sortis Opportunity Zone Fund

Sortis Opportunity Zone Fund

(Closed to new investment)

Sortis Holdings sponsors and manages the Sortis Opportunity Zone Fund I, a Tax Reduction Fund for investors to take advantage of one of the best capital gains tax reduction programs of a generation. Created through the Tax Cuts and Jobs Act passed in December 2017, opportunity zone investment funds offer investors the ability to invest realized capital gains into real estate projects and businesses in qualified geographical areas. Following our successful private lending fund footprint, Sortis invests in the Western US with a focus on the Northwest.

Fund Details

How does Opportunity Zone Fund investing work?

An investor who has realized a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they reinvest that gain into an Opportunity Fund within 180 days. There are three primary advantages to rolling over a capital gain into a qualified Opportunity Zone Fund:

1. Defer

the payment of your capital gains until December 31, 2028.

2. Reduce

Effective January 1 the benefit drops to 10% after 5 years.

3. Pay Zero

tax on gains earned from the Opportunity Zone Fund.

Core Investment Themes

Hill + Hawthorne, a Bend, OR flex multifamily project © Sortis

Investment Philosophy
Western US with a focus on the Pacific Northwest: strong diversified economies, growing millennial demographic, lifestyles amenities, and urbanization. Focus on top performing submarkets and the best locations within those submarkets

Risk Mitigation
Strong focus on downside protection and capital preservation through disciplined capital allocation, detailed underwriting, pre-leasing when possible and strong execution.

Creative Sourcing
Off-market transactions, situations where complexity limits buyer pool, prospective tenant driven, pre-bid completion of due diligence

NIR Center, a Portland Life Sciences project © Sortis

Invest at the Appropriate Basis
Assets that can be acquired at a discount to relative replacement cost

Strategic Monetization
Continuously conduct buy/hold analyses throughout the fund duration to realize maximum risk-adjusted returns

Proprietary Strategies
Continually evolving our strategies to stay ahead of fast-changing trends in the market. In the late stages of an economic cycle, simple strategies will not be successful.

Investment Strategy

Recently completed downtown Seattle Macy's, a great example of real estate trends in adaptive re-use and mixeduse. (Not part of the OZ Fund) © Sortis

Real Estate Trends
It is easy to be a follower of real estate trends, but we pride ourselves on being a first-mover when we identify opportunities.  Trends are not hard to identify, but taking advantage of them is the art.  We are focused on how technology is disrupting real estate, especially retail, multifamily, hospitality and healthcare/life sciences.  One thing is certain regardless of real estate cycles, we will continue to see progress in technology.  This will continue to evolve the real estate markets at an increasing pace creating opportunity for those who are well-positioned.  We intend to put ourselves ahead of the coming wave.

Mixed Use
By pairing a creative mix of synergistic uses that combine two or more of our focus strategies, we can create outsize returns that may not exist in a stand-alone project. You will see several examples of that in our pipeline that play into market trends for mixed use development in urban areas creating outsized returns from the synergies.

Opportunity Zone Fund Structure

Tukwila Village, a Seattle senior multifamily project © Sortis

Diversified Multi-Asset Fund
The primary offering is a Multi-Asset Fund that allows for greater diversification. Multiple assets of institutional quality across different asset classes and locations.

Project Specific Funds
Project Specific Funds are available for our larger institutional quality projects as a co-investor with our Multi-Asset Fund. Minimum investment for Project Specific Funds start at $250,000.

Allocator + Developer
Sortis is both a developer through its’ affiliated developer and an allocator of capital to third party developers. Our deep real estate expertise allows us to play both roles effectively and give investors the best available projects.

A COMPELLING NEW TAX-ADVANTAGED INVESTMENT

If you’re planning to realize a capital gain in the near future or are simply interested in harvesting a portion of an existing unrealized capital gain, Opportunity Zone Funds are one of the most exciting investment developments in recent history. Send us a note below and one of our fund managers will contact you with more detailed information about our opportunity zone business plan. Or you may invest right now using our online subscription interface.

Start Investing

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