Atlas Real Estate Partners Opportunity Zone Fund 4
Invest in Tax-Advantaged Multifamily Opportunity Zone
Developments in the Southeast United States
2.3x - 2.7x
Target Net Equity Multiple 2, 3
12% - 14%
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
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
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.
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.
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
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