Ravi Norman, CEO of THOR Cos. in Minneapolis.
MINNEAPOLIS—The recently enacted Invest in Opportunities Act, along with a set of guidelines issued last week by the US Treasury Department, has excited a lot of interest from developers and investors who want to take advantage of federal tax incentives now offered to projects in so-called Opportunity Zones. And that includes well-known names from the Twin Cities.
Minnesota Opportunity Zone Advisors, a mission-oriented real estate investment manager, has launched the D.R.E.A.M. Fund to focus on the state's opportunity zones, both in the Twin Cities and other larger communities. Gov. Mark Dayton identified 128 zones that were then certified by Treasury officials, who administrator the program.
“Opportunity Zones offer a form of emerging market investing that taps overlooked and undervalued communities to unlock their full potential,” says Ravi Norman, a MN-OZA partner. As reported in GlobeSt.com, as chief executive officer of THOR Cos., he has helped revive North Minneapolis by developing its new headquarters in the neighborhood.
“We see this unleashing enormous productivity to help America realize its greatest gains,” he adds. “The D.R.E.A.M. Fund's name reflects our purpose and also the aspirations of people, families and neighborhoods to create new places to help forge healthy communities.”
“We see the world through the same lens, and aspire to advance social, environmental and economic impact in Minnesota's Opportunity Zone communities,” says partner Jamie Stolpestad. “We expect the greatest investor interest coming from those who prefer to invest locally and want to put their money where their heart is.”
The D.R.E.A.M. Fund seeks to raise $100 million of total capital. According to the federal guidelines, investors who sell appreciated assets may roll over the gain from such sales to a qualified opportunity fund within 180 days and defer federal capital gains tax until 2026. In addition, gains from the Opportunity Fund are free of federal capital gains tax if the investment is held for at least 10 years.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
