CIM Launches Opportunity Zone Fund with $5 Billion Fundraising Goal

CIM Group, a commercial real estate firm that sponsors non-traded direct investment programs, is launching a Regulation D opportunity zone fund with a fundraising goal of $5 billion.

CIM Group, a commercial real estate firm that sponsors non-traded direct investment programs, has launched the CIM Opportunity Zone Fund L.P., a Regulation D opportunity zone fund.

Last Friday, CIM submitted their Form D notice to the Securities and Exchange Commission detailing plans to structure the offering as a private equity fund with a fundraising goal of $5 billion.

The federal opportunity zone program was established as part of the Tax Cuts and Jobs Act and offers capital gains tax relief for new investments in certain economically distressed areas nationwide that are designated as qualified opportunity zones.

According to the proposal, investors can defer taxes until 2026 for capital gains from prior investments, if those gains are redeployed into opportunity zone funds. For opportunity zone investments held for five years, taxpayers can eliminate 10 percent of the deferred gain. For investments held for seven years or longer, 15 percent of the deferred gain can be eliminated. Additionally, investors that hold their opportunity zone investments for at least 10 years are exempt from paying capital gains taxes on that investment.

CIM is a vertically-integrated owner and operator of real estate assets that include urban residential, commercial, retail, hospitality, debt, and infrastructure investments, as well as U.S.-based retail and industrial net-lease. In February 2018, a subsidiary of the company purchased Cole Capital which sponsors five publicly registered non-traded real estate investment trusts. Since 1994, CIM has managed more than $56 billion in projects on behalf of its own account and its partners, co-investors and shareholders.

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