Atlas Real Estate Partners Opportunity Zone Fund 4

Invest in Tax-Advantaged Multifamily Opportunity Zone

Developments in the Southeast United States

Atlas’s fourth qualified opportunity zone fund (Atlas QOZ Fund 4) will be a diversified multi-asset vehicle targeting four-to-six projects. The fund will capitalize an active pipeline of multifamily development projects located in high growth cities throughout the Southeast. An investment of qualified gains in an opportunity zone will defer your existing capital gains and eliminate future capital gains, related to your investment in the Fund. 1

2.3x - 2.7x

Target Net Equity Multiple 2, 3

12% - 14%

Target Net IRR 2, 3

1 The qualified opportunity zone program is a federal tax program; certain states conform to the federal tax treatment of investments in qualified opportunity funds, and others do not.

2 Before factoring Opportunity-Zone Benefits (see below for details).

3 There is no guarantee or assurance that targeted returns will be achieved or that investors will receive any returns at all. The actual returns of the Fund cannot be predicted and are subject to numerous factors that may be outside of the control of the Sponsor.

Receive the Tax Benefits of the
Qualified Opportunity Zone (QOZ) Program

Capital Gain Investment

2022

Short and Long Term Capital Gains are eligible to be invested in Atlas QOZ Fund 4.

Tax Deferral

2026

Defer your existing capital gains taxes through the end of 2026* by reinvesting those capital gains into the Atlas QOZ Fund 4.

2028

Proposed bipartisan legislation would extend the deferral period from 2026 to 2028.*

Tax Elimination

2032

Qualifying investors pay $0 in federal income tax on capital gains when the Atlas QOZ Fund 4 exits in 10 or more years.

* There is currently bipartisan legislation working its way through Congress that would significantly improve the attractiveness of the opportunity zone program if passed by (1) further extending the deferral period by two years through 2028 and (2) reintroducing the 15% step-up in basis for investments made in 2022 and a 10% in basis for investments made in 2023.

Receive the Tax Benefits of the Qualified Opportunity Zone (QOZ) Program

2022

Capital Gain Investment

Short and Long Term Capital Gains are eligible to be invested in Atlas QOZ Fund 4.

2026

Tax Deferral

Defer your existing capital gains taxes through the end of 2026* by reinvesting those capital gains into the Atlas QOZ Fund 4.

2028

Proposed bipartisan legislation would extend the deferral period from 2026 to 2028.*

2032

Tax Elimination

Qualifying investors pay $0 in federal income tax on capital gains when the Atlas QOZ Fund 4 exits in 10 or more years.

* There is currently bipartisan legislation working its way through Congress that would significantly improve the attractiveness of the opportunity zone program if passed by (1) further extending the deferral period by two years through 2028 and (2) reintroducing the 15% step-up in basis for investments made in 2022 and a 10% in basis for investments made in 2023.

Maximize Your Investment Returns with the Atlas QOZ Fund 4

An investment in Atlas’s QOZ Fund 4 is expected to achieve 72.2% more after tax profit vs a Traditional Fund investment, given the same pre-tax multiple of 2.5x. 

Returns and other amounts shown in the example are hypothetical in nature and are shown for illustrative purposes. Actual returns and performance may vary significantly from the examples depicted above based on the timing and amount of intermittent cash flow and tax rates. No returns are guaranteed, and investors may suffer substantial losses from investing in the fund.

(1) Represents the amount of funds an investor would need have to invest absent the opportunity zone benefits.

(2) Deferred Capital Gain currently needs to be recognized as of 12/31/26. A bipartisan/bicameral bill has been introduced that would further defer gains, if passed as proposed.

Atlas QOZ Fund 4 Strategy

The multi-asset fund is expected to consist of 4-6 multifamily developments utilizing low-to-moderate leverage

Atlas is pursuing transformative developments in high-growth Southeast markets

Atlas aims to refinance the properties within five years, returning a meaningful amount of equity, and thereafter holding core, multifamily assets producing predictable quarterly distributions

Atlas QOZ Fund 4 Strategy

The multi-asset fund is expected to consist of 4-6 multifamily developments utilizing low-to-moderate leverage

Atlas is pursuing transformative developments in high-growth Southeast markets

Atlas aims to refinance the properties within five years, returning a meaningful amount of equity, and thereafter holding core, multifamily assets producing predictable quarterly distributions

Why Multifamily?

Multifamily offers superior risk-adjusted returns compared to other real estate asset classes due to stable cash flow and housing being a critical expense. In 2021, vacancy dropped to historic lows of 4.7% while rent grew by a record setting 12.5%. 1

Multifamily is a strong inflation hedge with rents resetting daily and with ~1/12th of leases rolling each month.

Multifamily is a strong inflation hedge with rents resetting daily and with ~1/12th of leases rolling each month.

Multifamily housing stands to benefit from the housing shortage and affordability crisis. 87.5 million households (69%) could not afford a median-priced home in 2021.2 Given the 3 million cumulative shortfall in housing units and growing, home prices will continue to be unaffordable. 3
Multifamily is experiencing historic levels of capital inflow, keeping cap rates compressed. The amount of dry powder accumulated by North America-focused close-end real estate funds totaled $220B in 1Q22. Leveraged at 65% LTV, the dry powder earmarked for equity investments equates to $575B in spending power. 1
Atlas believes multifamily will continue to benefit from positive macro housing trends and solid fundamentals, which are most attractive in the Southeast.

(1) Freddie Mac
(2) NAHB/Wells Fargo Housing Opportunity Index (HOI)
(3) Evergreen

Why Atlas?

Atlas is a multifamily-focused private investment and development firm with offices in New York City & Miami. Atlas has a proven track record and a fully-integrated development team.

Strong Track Record

Atlas has acquired and developed 10k multifamily units with 3k units in the Southeast.

Proven Execution

Atlas has a fully-integrated sourcing, development, and operations platform to acquire, design, construct, and execute multifamily development projects.

Partnership-Driven Model

Atlas QOZ Fund 4 is structured to enable seamless JV’s with local partners without a double layer of fees.

Local Presence

Atlas has a strong presence and key relationships across the Southeast with existing assets in target markets.

Atlas QOZ Funds 1 – 3

Atlas has closed three single-asset Qualified Opportunity Zone Funds 

Nashville

QOZ Fund 1

Nashville (WeHo): 310-unit project ($83M capitalization) currently under construction and set to deliver in 3Q 2022

Nashville

QOZ Fund 2

Nashville (WeHo): 246-unit project ($91M capitalization) construction began in 3Q 2022.

Atlanta

QOZ Fund 3

Atlanta (Chamblee): Atlanta: 192-unit project ($79M capitalization) slated to break ground in 4Q 2022

Atlas QOZ Fund 4

Atlas is currently raising capital and expects strong demand from existing Atlas investors. Please reach out to reserve your spot in Atlas’s QOZ Fund 4.

An investment in the fund described above (the “Fund”) involves a high degree of risk and is suitable only for investors that have no immediate need for liquidity of the amount invested and can withstand a loss of their entire investment in the Fund. When analyzing an investment in the Fund, prospective investors should consider, without limitation, the following risks, and should also carefully review the more thorough discussion of risk factors and potential conflicts of interest contained in the Private Placement Memorandum, Operating Agreement and Subscription Agreement for the Fund (collectively, the “Fund Documents”). Prior to making a decision to invest in the Fund, investors should carefully review the Fund Documents. Any of the information contained above is qualified in its entirety by the information contained in the Fund Documents.

No Assurance of Investment Return; Possible Loss of Entire Investment
Atlas cannot provide any assurance that it will be able to choose, make and realize investments in any particular asset or portfolio of assets. Similarly, there can be no assurance that the Fund overall will be able to generate returns for its investors or that the returns will be commensurate with the risks of investing in the types of assets the Fund will be targeting. There can be no assurance that any investor will receive any distribution from the Fund. Accordingly, an investment in the Fund should only be considered by persons who can afford a loss of their entire investment. Prospective investors are cautioned that past performance of investment entities associated with Atlas or its affiliates is not necessarily indicative of future results and provides no assurance of future success.

Returns May Not Be Equivalent to Those of Prior Investment Vehicles Managed By Atlas
There can be no assurance that the Fund’s returns will approach the individual or collective historical performance of other Atlas investment vehicles. Prior investment vehicles managed by Atlas invested in a single asset, and, unlike the Fund, are not discretionary funds. There are significant differences between the return and risk profiles of single asset vehicles and discretionary funds, such as the Fund. In addition, fees and sponsor compensation differ between singe asset vehicles and discretionary funds. The loss of all or a portion of the amount invested in any of the Fund’s investments is possible.

Investments Not Yet Identified
The specific investments being pursued by the Fund may not yet have been identified. Investors will be investing in a discretionary fund and will not have the right to approve of investments selected by the Fund for investment.

Lack of Liquidity
An investment in the Fund will be highly illiquid and requires a long-term commitment, with no certainty of return. Atlas anticipates a long time period between the initial capitalization of the Fund and the time when the Fund’s investors may receive distributions, if any. Additionally, the types of assets in which the Fund intends to invest are illiquid and will remain so for an indefinite period. Depending on market activity, volatility, applicable laws and other factors, the Fund may not be able to promptly liquidate its investments at an attractive price or at all. The sale of any such investments may be subject to delays and additional costs and may be possible only at substantial discounts.

Dependence on Key Personnel
The success of the Fund will be dependent on the financial and managerial experience of Atlas and its personnel. There can be no assurance that current Atlas personnel will continue to be associated with Atlas or its affiliates throughout the life of the Fund. Similarly, there can be no assurance that the members of the Fund’s investment committee will remain the same during the life of the Fund. If the Fund’s management team cannot agree on decisions affecting the Fund, it may adversely impact investment results of the Fund, or the loss of personnel. Additionally, Atlas personnel may be engaged in other activities besides management of the Fund.

Risks Inherent in Real Estate Investments
All real estate investments are subject to some degree of risk. For example, real estate investments are relatively illiquid and, therefore, may tend to limit the Fund’s ability to promptly adjust the Fund’s portfolio in response to changes in economic or other conditions. No assurances can be given that the fair market value of any real estate investments held by the Fund will not decrease in the future or that the Fund will recognize full value for any investment that the Fund is required to sell for liquidity reasons. Other risks include changes in zoning, building, environmental and other governmental laws, changes in operating expenses, changes in real estate tax rates, changes in interest rates and changes in the availability, costs and terms of mortgage funds, energy prices, changes in the relative popularity of properties, the ongoing need for capital improvements, cash flow risks, construction risks, as well as natural catastrophes, acts of war, terrorism, civil unrest, uninsurable losses and other factors beyond the control of the Fund or the management team.

Tax Risks – Opportunity Zone Provisions
The Fund was formed for the purpose of benefiting from the Opportunity Zone program, and presently intends to conduct its operations so that it is treated as a Qualified Opportunity Fund (a “QOF”) within the meaning of Subchapter Z of the U.S. Internal Revenue Code. However, no assurances can be provided that the Fund will qualify as a QOF or that, even if it does qualify, the tax benefits related to the QOF program will be available to any particular investor in the Fund. In addition, complying with QOF regulations could have a material adverse effect on the Fund’s performance. The Fund may change its acquisition program, its strategies, and the investments or types of investments it may make at any time and from time to time in order to comply with any additional legislation or administrative guidance from Congress or the Treasury.1

1 The qualified opportunity zone program is a federal tax program; certain states conform to the federal tax treatment of investments in qualified opportunity funds, and others do not.

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