MIG Continues to Seek out OZ Investments in Key Markets

FREMONT, CA—MIG Real Estate LLC, a real estate investment company headquartered in Newport Beach, has opened escrow on two new Opportunity Zone ground-up multifamily development projects: a 240-unit rental residence in Fremont and a 140-unit rental residence in Hollywood. These projects mark the firm’s entry into the Los Angeles and Bay Area markets.

“We’re excited to have the opportunity to develop and improve these two properties by adding much-needed housing to these communities,” says Elizabeth Cobb, director of development at MIG. “These projects are important steps in our continued strategy to seek out Opportunity Zone investments for development in key markets.”

This effort is the continuation of an investment strategy launched by MIG this year to reposition its portfolio by acquiring and developing new projects in key urban markets. To further that goal, MIG has allocated $100 million in equity to develop Opportunity Zone sites throughout the Western United States. MIG is actively seeking other suitable land investment opportunities in primary markets throughout the West, Mountain West and Sun Belt states.

“These two new projects are the beginning of MIG’s ongoing campaign to seek out and develop sites in Opportunity Zone sites throughout the West,” Cobb tells GlobeSt.com. “Our hope is that by rejuvenating these under-served areas with new projects, we can revitalize these communities and improve the surrounding areas and businesses.”

Earlier this year, MIG acquired its first site in the Denver metropolitan area for the development and construction of a 114-unit luxury apartment community. The project is slated to begin construction later this year.

To support the new strategy, the firm has made several strategic hires of professionals with extensive commercial development expertise including Michael Englhard as chief operations officer, Elizabeth Cobb as director of development, Chris Wright as director of construction and Colin Bagwell as acquisitions and development manager.

There are three primary benefits of investing in a Qualified Opportunity Fund, according to California’s Opportunity Zone frequently asked questions:

Capital Gains Tax Deferral: An investor that re-invests capital gains into a Qualified Opportunity Fund can defer the payment of federal taxes on the realized gains of the investment as late as December 31, 2026.

Capital Gains Tax Reduction: An investor that holds an investment in a Qualified Opportunity Fund for at least five years can reduce a tax bill on the capital gains differed by 10%. If the investor holds an investment for at least seven years, the reduction increases to 15%.

Elimination of Taxes on Future Gains: An investor that holds an investment in a Qualified Opportunity Fund for at least 10 years will not be required to pay federal capital gains taxes on any realized gains from the investment.