Qualified Opportunity Zones

Qualified Opportunity Zone (QOZ) Investing

Qualified Opportunity Zone (QOZ) investing represents one of the greatest confluences of tax incentives, capital deployment opportunities, and community impact made available to investors in decades. The essence of the program is the promotion of the reinvestment of capital gains into low-income areas by providing significant tax benefits to investors. When a person reinvests a capital gain into a qualified opportunity fund (QOF), they receive two tax benefits:

• Deferral of the recognition of the original gain until 2026
• Tax-free appreciation on their investment in the QOF if the investment is held for 10 years

Grubb Properties launched its first QOF in 2019 and has since raised $550 million in the program. But Grubb was investing in these areas long before there was any tax incentive for their investors. In fact, the first Link Apartments^® project in the Grubb Properties portfolio – Link Apartments^® Manchester – which was developed in 2012, sits in a location that has since been designated a QOZ.

By the time QOZ legislation was implemented, Grubb Properties already had four Link Apartments^® sites in service or development in QOZs. We have completed 22 investments under the program and are excited to continue to grow our portfolio in 2023 and beyond.