StoneCreek Partners announced today that it has expanded its comprehensive service offerings to include Qualified Opportunity Zone consulting and implementation services.
As part of its SCP Advisors’ national consulting practice, StoneCreek Partners has begun work with clients looking to implement new projects utilizing the new U.S. Opportunity Zone legislation.
“We look forward to working with private and public clients, as well as local community groups, in identifying and implementing projects that work with the emerging Opportunity Zone legislation,” said Donald Bredberg, managing director for StoneCreek Partners, “we offer a unique capability and long expertise with feasibility matters, as well as in having hands-on experience as property developers.”
The Federal Tax Cuts and Jobs Act (“TCJA”) created qualified “opportunity zones” in December 2017 to encourage tax-favored investment in distressed communities throughout the U.S.
Under the new law, investors may be able to defer tax on almost all capital gains they invest after Dec. 31, for years ending 2018 through 2026. The Treasury Dept. has published guidance as to how Opportunity Zone tax-advantaged projects may proceed, and this guidance is likely to continue to evolve. On February 14th, an upcoming public hearing will be convened to invite comments and otherwise address the Treasury’s guidance as published.
Over the years, StoneCreek (https://stonecreekllc.com) has worked with a variety of private- and public-sector organizations (and their respective legal, accounting, and financial advisors) such as investors, developers, facility operators, real estate partnerships, private equity and hedge funds, as well as cities, counties, and public agencies.
As opportunity zone consultants, SCP is providing select Opportunity Zone services:
- Owner Representation – Project management on behalf of owners in evaluating, structuring, and pursuing specific Opportunity Zone projects, whether private-sector investors and advisors, or public-sector organizations where they are directly involved in a particular aspect of Project implementation.
- Transactions – Facilitation of site (or facility) acquisition and disposition in connection with Opportunity Zone investment.
- Feasibility Studies – Analysis of feasibility for specific proposed Opportunity Zone projects, including market and financial analysis, and ROI evaluation from the perspective of potential Opportunity Zone investors. Even where investments are tax-advantaged such as with Opportunity Zones, it is essential for projects to be confirmed for their pre-tax feasibility.
- Project Pipelines – For public-sector organizations, providing areawide analysis of economic development potential, and identification of a portfolio of pipeline projects that are suitable for Opportunity Zone investment. For particular Opportunity Zone areas, this analysis will be a combination of screening, industry sector strengths and weakness, underlying regional and local economies, and local community project advocacy. There are a number of specific project attributes that must be met to meet requirements of the Opportunity Zone legislation.
- Project Advocacy – Representation of long-dormant local projects, and local investment hopes, to the qualified investor community. The Opportunity Zone Program ignites the possibility of long-desired economic development and investment, which are specific to local low-income and disadvantaged communities. Although this is the stated primary goal for this new tax legislation, it may take some expertise and advocacy to bring dormant initiatives to the top of investor pipelines.
- Community Synergies – Consideration of community-wide economic development objectives and cross-program synergies that may exist, by and between Opportunity Zones and these other desirable local programs and outcomes.
- Project Team Organization – Team-building for potential Opportunity Zone projects that may require enhanced development and operations capabilities, for implementation.
StoneCreek Partners is an owner representation, real estate consulting, and development company. SCP was founded in 1984, a successor to JH Bredberg Engineering; currently led by chief executive Donald Bredberg.
For more information, please contact StoneCreek Partners at (805) 770-1277, extension 11.
As project feasibility consultants, SCP provided market and financial feasibility analysis in support of the master planning of a residential golf community in Lake Forest (Chicago), Illinois.
Residential market analysis, residential product array and concepting, builder residual analysis, and business plan feasibility analysis was conducted for this now completed luxury residential golf community, situated in prestigious Lake Forest, Illinois. The Tom Fazio (golf course architect) award-wining course sits on 209 acres and is designed around the traditions of Scottish links golf.
For this prominent master-planned residential community, in North San Diego County, work was in support of company’s overall business planning effort. Client organization was interested in understanding the financial comparison of various build-out strategies, exiting either through bulk land sale, finished lot takedowns to end builders, or hold and develop through end homebuilding. Work included “finished lot vs. builder pad” take-down scenarios.
BCE Development had acquired this North San Diego County master-planned community with substantial remaining build-out inventory, as part of a portfolio acquisition of major land developments. A business plan with detailed market and financial analysis was prepared, for use by California senior management of this major Canadian company, in presenting to the Board of Directors various alternatives for disposition and/or development. One key strategic marketing issue in the business planning effort, was the amount and type of senior housing (independent living, assisted living, skill nursing, etc.) to be included in the land use plan.
The La Costa Ranch property is part of he City of Carlsbad, a unique coastal community located about 35 miles north of the City of San Diego surrounded by mountains, lagoons and the Pacific Ocean. The City’s overall build-out population is about 135,000 residents based upon a total dwelling unit cap ratified by Carlsbad votes in the November 1986 election. While a smaller, coastal community, Carlsbad is the location of multimedia, biomedical, electronic, and light industrial businesses.
Leasing plan and financial analysis for planned shopping center in Rancho Santa Margarita, California.
Extensive financial analysis was prepared in collaboration with client organization’s CFO, in tandem with ongoing land use master planning and experiential design efforts for this town center facility in the heart of this highly-successful master-planned community.
The City of Rancho Santa Margarita is a result of a handshake land deal where James C. Flood and Richard O’Neill, Sr. purchased the property and later, O’Neill deeded his land holdings to his son, Jerome, under whose leadership the ranch grew to 230,000 acres and spanned three counties. The holdings later become home to such communities as Mission Viejo and Rancho Santa Margarita. The Rancho Santa Margarita landholding traces its history to the Shoshonean Native American Indian trible known as the Acagchemen. The community is situated along the foothills of the Santa Ana Mountains, master planned as an urban village.
Acted as a master-planned community consultant to JMB Realty in connection with ongoing build-out of this major Orange County planned residential golf community. Focused residential product and financial analysis in support of ongoing builder sales program, at this resort-style master-planned golf community in Orange County, California. Financial analysis in support of residential product concepting, subdivision build-out, for Owner’s land development team involved with planning and developing this master-planned Orange County community.
Working with project team members including land planning, civil engineering, entitlement representatives, and in-house client project management and financial staff, the various financial analysis included builder residual calculations to support land sale negotiations to third-party home builders.
Coto de Caza is one of Orange County’s leading master-planned communities. The MPC includes golf courses, equestrian facilities, horse trails, and extensive pathways and hiking trails for residents, all in one of Orange County’s more rural settings.
Asset opportunities review as part of owner’s business planning process.
The 505-acre Newport Banning Ranch was owned by an affiliate of Nissho Iwai American Corp. (NIAC), in venture with partners (Taylor Woodrow Company and a major oil company). NIC was interested in what feasible disposition and/or development options might be best for this property. Important issues included its location within a California Coastal Commission LCP planning jurisdiction, ongoing oil and gas extraction operations conducted throughout the County (454 acres) portion of the property, abandoned oil well clean-up, and sensitive habitats, steep coastal bluffs, gullies and ravines.
Work completed for NIAC while StoneCreek Partners was retained as U.S. representative for new acquisitions and venture investments, including acting as a due diligence consultant, in real estate.