Belpointe REIT: The Opportunity Zone REIT

Belpointe is a leading investment firm based in Greenwich, Connecticut, that has a unique combination of resources and real estate development and construction expertise. Belpointe’s success is due to its team of former AvalonBay development and construction experts, its investment team with over a billion dollars in real estate investments, its wealth management team currently managing over a billion dollars in assets, and its in‐house legal team who help mitigate risk. Belpointe’s fully integrated real estate investment, development, construction and management teams separate Belpointe from the competition. These unique set of resources and professionals combined with its reduced fee structure and tax advantages makes the Opportunity Zone REIT an unmatched real estate investment platform that has not been done by any other real estate investment company.

Belpointe REIT is disrupting the REIT and opportunity zone industry by combining two tax-advantaged strategies into one investment vehicle and bringing to market the first ever publicly registered REIT focused entirely on opportunity zones: The Opportunity Zone REIT.

Belpointe Disruptors

Quarterly Liquidity

The Opportunity Zone REIT is open‐ended vehicle that allows its stockholders to exit on a quarterly basis, at Net Asset Valuation (“NAV”). The NAV is determined quarterly by its independent board members using third‐party reports. Belpointe does not impose exit penalties, where other real estate vehicles typically charge penalties up to 12% for its investors who exit before maturity.

Reduced Management Fee

The Opportunity Zone REIT’s management fee is 0.75% of its NAV, allowing advisors to charge their advisory fees, thus, the aggregate fees are <2%. Typically other real estate vehicles charge for themselves a management fee of 2%, thus, the aggregate fees are 3% or greater.

Minimal Carried Interest

The Opportunity Zone REIT’s carried interest is only 5%, where other real estate vehicles typically charge their investors a carried interest fee of 20% or more.

No Acquisition/Disposition Fees

The Opportunity Zone REIT charges NO acquisition or disposition fees. Many other real estate vehicles typically charge their investors acquisition and/or disposition fees.

Public Company Transparency

The Opportunity Zone REIT was formed as a Public Non‐Traded REIT to provide its shareholders with institutional reporting and oversight without the volatility of the stock market, where as private vehicles (private REITs and partnerships) have limited transparency for its investors.

Greater Asset Diversification

The Opportunity Zone REIT will invest in multiple real estate investment assets across the country, where partnership private equity funds are limited in the number of real estate investments they can make due to opportunity zone requirements. Therefore, private equity fund investors are exposed to a higher level of real estate portfolio risk compared to the Opportunity Zone REIT’s shareholders have less risk due to their larger diversified real estate investment portfolio.

Public Market Accessibility

The Opportunity Zone REIT plans to list its shares on a national stock exchange (i.e. NYSE) within 6 to 8 years of its initial offering, which allows for the following shareholder benefits:

  • Faster Liquidity: Listing on an exchange will provide the Opportunity Zone REIT shareholders with ultimate exit liquidity 5 years sooner than typically private real estate fund investors because private structures generally do not have access to the public markets. Therefore, under opportunity zone regulations, private equity fund investors will on average have to hold their investments for 15 years, which is 5 years longer than the Opportunity Zone REIT shareholders’ holding period.
  • Shareholder Controlled Exits: Listing on an exchange allows the Opportunity Zone REIT shareholders to control their ultimate exit (sale timing and amount) of their investments. Whereas investors who invest through private investment vehicles generally do not have access to the public markets, therefore, they must rely on their fund managers to decide when their investments should be sold and when their capital should be distributed.

Development Expertise

Belpointe’s unique real estate team of former AvalonBay developers and construction managers bring an unmatched real estate development team with experience that other real estate funds don’t have internally, which is crucial in operating opportunity zone vehicles.

Investment Platforms (using local knowledge with Belpointe’s expertise and systems)

  • Franchise Platform: regional affiliated Belpointe development companies in specific regions throughout the US that are managed by local Belpointe development partners.
  • Programmatic Platform: joint ventures with established regional developers that have an exclusive co‐sponsor partnership with Belpointe and its affiliates on multiple investments.
  • Traditional Joint Venture and Co‐Sponsor Platforms: joint venture investments with a Belpointe affiliate and/or local developers on an non‐exclusive deal‐by‐deal basis.

Regulatory Disruptors

No Commission Load:

FINRA Regulation 15‐02 requires Net Asset Valuation (“NAV”) pricing after an investment is made by investors, which traditional Broker‐Dealers (“pay‐to‐play”) fees can cost investors as much as 15% of their investment. Belpointe REIT charges ZERO Commissions or Loads.

Opportunity Zone (Capital Gain Deferral)

  • The reinvestment of recognized capital gains within 180 days in Belpointe REIT, shall defer such capital gains until the earlier of December 31, 2026 or the sale of Belpointe REIT stock.
  • Any Capital Gain in Any Asset Class, including short term capital gains.
  • Only Capital Gains need to be invested and shall receive the tax benefits (No Basis).

Opportunity Zone (Capital Gain Reduction)

If an investor holds its stock for either 5 or 7 years, the investor reduces its reinvested capital gains by 10% if held for 5 years or 15% if held for 7 years.

Opportunity Zone (Capital Gains Exemption)

No Capital Gains Taxes on the appreciation of the Belpointe REIT stock, if the shareholder holds its stock for at least 10 years.

20% Pass ‐ Through Deduction for Dividend Income (Taxed as Ordinary Income)

The Opportunity Zone REIT shareholders will receive the 20% tax deduction on their REIT dividend income received. Unlike the Opportunity Zone REIT’s shareholders, investors through partnerships and LLCs structures are subject to multiple limitations that can restrict their eligibility to receive the 20% tax deduction. REITs are exempt from these limitation rules, which allows its shareholders to receive the full 20% tax deduction benefit.

No Dual State and Local Income Tax Exposure

No state and local income taxes exposure on where properties are located, only state and local income taxes where the shareholders’ are domiciled. Investors in the Opportunity Zone REIT will receive a 1099 vs a K1 which you receive as an investor in a private equity fund.