NYC Planning Commissioner’s Viceroy Equities Launches Opportunity Zone Fund
Viceroy Equities LLC, a New York-based an investment and hedge fund management firm, has launched the $75 million B'KOZ Opportunity Zone Fund.
Viceroy Equities LLC, a New York-based investment and hedge fund management firm, has launched the $75 million B’KOZ Opportunity Zone Fund. The opportunity zone fund will invest exclusively in real estate projects located in Brooklyn.
The company is headed by New York City planning commissioner Joseph Douek who previously served as a director for both the NYC Economic Development Corporation and the NYC Industrial Development Agency for more than a decade.
“Congress got this one right. It’s unlike anything I’ve seen before,” said Douek. “The opportunity zone legislation leverages private investment, creating jobs and transformational opportunity for those areas. All of America benefits by keeping the torch lit on the economic vitality unleashed by the 2017 legislation.”
He added, “Our goal through the B’KOZ fund is to invest in Brooklyn development projects in opportunity zones only. The Brooklyn market has experienced rapid growth and I’m optimistic that Brooklyn will continue to experience above average success for the foreseeable future.”
The new opportunity zone program was established as part of the Tax Cuts and Jobs Act of 2017 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.
Viceroy Equities was founded in 2018. The B’KOZ Opportunity Zone Fund is the first in a series of Opportunity Funds to be managed by the company.
