Shopoff Realty Investments, a national manager of opportunistic and value-add real estate investments, has launched its first qualified opportunity zone fund, Shopoff DLV QOZ.
The fund has a maximum capital raise of $200 million and will provide the equity for construction of the $545 million Dream Las Vegas hotel on the Las Vegas Strip. The fund will close for investment on June 30, 2021 but may be extended.
“This is a very unique QOZ fund offering, in fact, we believe there are no other QOZ offerings that are for hotels on the Las Vegas strip at the caliber of the Dream Hotels brand,” said William Shopoff, president and chief executive officer. “Further, there is a very limited chance that another development of this kind will be constructed in the near future, making this a very exciting opportunity for the marketplace.”
Dream Hotel Group, a hotel brand and management company, has signed on as operator and manager of the hotel upon completion. Dream Las Vegas will be a flagship property for its namesake lifestyle brand Dream Hotels.
The opportunity zone legislation was part of the Tax Cuts and Jobs Act of 2017 and provides potentially significant tax breaks to investors in order to spur investment in economically distressed communities designated as opportunity zones. Shopoff and its partner expect to hold the project for 10 years to realize the full tax benefits.
“With Contour as our co-developer, we have assembled a stellar team of professionals for this project, including world renowned contractor, McCarthy Building Companies, who just completed the Allegiant Stadium project, home of the Las Vegas Raiders, located less than one mile from the site of Dream Las Vegas,” Shopoff added.
Shopoff and Contour anticipate breaking ground on the hotel in the third quarter of 2021 and are currently finalizing the design and securing key project approvals with Clark County.
When complete, the hotel will include 450 guest rooms along with dining and nightlife options that include Nashville’s Stateside Kitchen, a Tulum-style pool and day club, multiple retail venues, a full-service spa with studio fitness, and 42,000 square feet of gaming. The project is expected to be complete in late 2023.
Shopoff Realty Investments is an Irvine, California-based real estate firm with a 28-year history of value-add and opportunistic investing across the United States. The company primarily focuses on generating appreciation through the repositioning of commercial income-producing properties and the entitlement of land assets. The 28-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group).