Exclusive: Sound West and Securities Vet Greg Genovese Launch Opportunity Zone Investment Firm
Sound West Group, a property developer and asset manager based in Seattle, Washington, has launched Sound West Realty Capital, an investment firm that will primarily focus on sponsoring qualified opportunity zone funds, in partnership with securities and real estate investment industry veteran Greg Genovese.
Sound West Group, a property developer and asset manager based in Seattle, Washington, has launched Sound West Realty Capital, an investment firm that will primarily focus on sponsoring qualified opportunity zone funds, in partnership with securities and real estate investment industry veteran Greg Genovese.
A qualified opportunity zone fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017, where people can invest their gains from prior investments into designated state opportunity zones.
These investments provide tax benefits to investors and stimulate economic development and job creation. The tax benefits include a temporary deferral of taxes arising from gains invested in an opportunity zone, an increase in basis that reduces the amount of taxes ultimately owed in respect of the deferred gains, and a potentially permanent exclusion from taxable income of gains arising from the new investment in the qualified opportunity zone fund. The first set of opportunity zones, covering parts of 18 states, were designated on April 9, 2018. A portion of the Greater Seattle area has been designated an opportunity zone.
According to the company, Sound West is pursuing an opportunity zone investment strategy after it determined that there are “notable investor advantages and program structures available to facilitate successful opportunity zone investments.”
Genovese, a 30-year veteran of the real estate securities industry, leads Sound West Realty Capital as principal and president.
“The timing is right for us to take this next step as we’ve continued to grow our development and asset management business,” said Sound West Group chief executive officer Wes Larson. “We have built a reputation over many years of delivering above average returns for our investors while also providing socially responsible, investor-centric programs, and the launch of Sound West Realty Capital is a natural extension for our expertise. Our entry into the real estate securities capital markets is one we are well-suited and prepared for with Greg at the helm.”
Sound West Realty Capital’s first program, Sound West OZ Fund I, a multi-asset class project in the Greater Seattle area, is set to be available for investment in September 2018.
