Real Estate Roundup

Feb 11, 2025

Everyone

Treasury Secretary Scott Bessent has spoken at length about extending the Opportunity Zone legislation. More than $40 Billion of Equity Capital has been committed to OZ Funds in 2024. This has been a huge driver of construction projects across the country since it’s inception. Novogradac tracks funds here. See attachments for graphs. Keep an eye out for news on this front.
Via313 Pizza has raised $32 million in equity capital, and plans to add 20 stores over the coming 3 years. A bright note in the restaurant space. Let's wish them the best of success.

Rueters is already reporting that Farmers are turning to Airbnb and Corn Mazes to make up for the decline in Farm Income. Reuters says there’s an expectation for an increase in Government contribution to Net Farm Income in 2025. Do(ge) you think so?
John Burns Real Estate Consulting is reporting that January’s sales count per community increase for home builders in 2025, was the smallest in 13 years. See attachment.

Zip’s Car Wash, the largest privately owned Car Wash operator, filed for bankruptcy. The’yre seeking $297 million in debt reductions. I have no idea if Zip’s used the method, but in the Tax Cuts and Job Act (TCJA of 2017) Car Washes were allowed 100% bonus depreciation in year one, including on purchase or construction of a new facility. Sale, including upon bankruptcy could potentially trigger Depreciation Recapture taxes.

Costar is reporting on the situation in Hollywood’s production world deteriorating.

I continue to believe there is tremendous opportunity to disrupt the entire film industry, including in the Real Estate world.

Sincerely,

Acquisitions Team:
1. Bonus Depreciation by itself isn’t a business plan.
2. Check out this ad and let me know what film studio space in Texas costs.
3. Pencil this: OZ Fund combined with NMTC over 10 years for a mixed use studio site. We can even Bonus Depreciate the car wash site.