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.
Acquisition program representative for U.S., for Nissho Iwai American Corp. (now Sojitz Corp.)
StoneCreek Partners was retained by Nissho Iwai American Corp. (NIAC, now Sojitz) as owner’s representative for their North American acquisitions program. The retainer relationship included solicitation and screening of investment proposals, initial investment suitability and feasibility evaluations for NIAC, and in select instances, preliminary deal structuring and due diligence support for prospective acquisitions.
Two select examples of additional detailed due diligence support were Calhoun Beach Club and Condominiums situated along the shoreline of Lake Calhoun in downtown Minneapolis, Minnesota, and, Newport-Banning Ranch located in Newport Beach, California. Sojitz was formed in 2004 by the merger of NIAC and Nichimen Corporation.
Executive-in-charge of acquisitions program for family office – Newfield Enterprises International. Much of the effort involved acting as a due diligence consultant in managing the deal pipeline and evaluating prospective acquisitions and strategic partners.
StoneCreek Partners was retained as an overall real estate consultant, to evaluate a major $40 million capital improvements program that would re-position the retail podium for a landmark office building.
Scope of work included review of market support from nearby financial district employees and visitors, re-tenanting mix, guest circulation retrofits, and related subjects.
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.
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.