Why Invest in the Dania Beach Community Redevelopment Agency Opportunity Zone?
An Opportunity Zone Fund is an investment vehicle organized as a corporation or a partnership that was created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investments in targeted communities called Opportunity Zones. State and Federal governments have identified portions of the Dania Beach Community Redevelopment Agency (CRA) as an Opportunity Zone targeted for economic development. The purpose of investing in a qualified property within an Opportunity Zone is so the investment holds at least 90 percent of its value. This means the investment vehicle must make sure that it does not hold more than 10 percent of assets that are not qualified opportunity zone properties. The Opportunity Zone in the Dania Beach CRA has been identified as a targeted redevelopment area that is experiencing a booming amount of construction and is prime for attractive real estate investments and development opportunities.
What is the Opportunity Zone Fund?
Investing in the Opportunity Zone Fund will allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reducing tax payments by up to 15 percent, and pay as little as zero tax on potential profits from the Opportunity Zone Fund if the investment is held for 10 years. To receive the most favorable tax benefits on their investment, investors are incentivized to hold stakes in the Opportunity Zone Fund over the long term, with the program providing the most potential upside to those who remain in the Opportunity Zone Fund for 10 years or longer.
How Does Investing in the Opportunity Zone Fund Work?
An investor who activates a capital gain by selling an asset (eg. stocks or real estate) can receive special tax benefits if that gain is rolled into the Opportunity Zone Fund within 180 days of the initial transaction. Investors who live in states with higher taxation will receive the greatest benefit from the program. There are three primary advantages to rolling over a capital gain into the Opportunity Zone fund:
- Defer the payment of your capital gains until Dec 31, 2026;
- Reduce the taxes you owe by up to 15% after 7 years; and
- Pay zero tax on gains earned from the Opportunity Zone Fund.
Dania Beach Quick Facts
- Located I-mile south of the Fort Lauderdale International Airport and 4-miles from Port Everglades
- Est. population 32,271
- Dania Beach Community Redevelopment Area is home to newly constructed Dania Pointe, a 102-acre premier mixed-use development with 2.5 million square feet of retail and office space, 6 hotels, a movie theater, and 1,000 luxury residential units.
- The Community Redevelopment Area is home to premier leaders in the South Florida marine industry with companies such as Derecktor, Mega Yacths, InterMarine, and American Maritime Officers Training Facility, such as Tru Hilton, Morrison Hotel, Comfort Suites, Wyndham Garden, Holiday Inn, and Marriott.
- About 50,000 square foot of commercial space is available for lease and 166,000 square feet of commercial and industrial space is available for sale within the Dania Beach CRA's Opportunity Zone.
- About 177 acres of vacant land available for redevelopment within the Community Redevelopment Area.
- About 410 acres of land within the Community Redevelopment Area is zoned for commercial or mixed-use zoning categories providing potential redevelopment opportunities.
