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From Dead Zone to Teachers Village
Ron Beit saw an opportunity to confront a major problem in Newark: only a small fraction of teachers can afford to live close to the schools they work in. Reflecting on his motivations, Beit says, “I knew this was the future. I knew people were wrong about this city.” A year after its completion, Beit’s success with Teachers Village is an inspiring perspective for community-focused investments in Opportunity Zones.
Teachers Village Rollout- Opportunity Zones:
The success of the Newark Teachers Village project and a nationwide appetite for innovative workforce housing solutions, especially for teachers, has already generated a significant organic pipeline for the successful effectuation of RBH Group’s (“RBH”) roll-out of its Teachers Village project across the country. Municipalities, universities, redevelopment agencies and landowners/developers around the country have presented opportunities to RBH to build Teachers Village projects in their communities.
In addition, on December 22, 2017, adoption of the “The Tax Cuts and Jobs Act”, a provision championed by New Jersey Senator Cory Booker (D-NJ), created a new tool for community development. A provision of the Act is designed to provide tax incentives to help spur private sources of financing to fund businesses and capital investment in underserved communities; the very communities in which RBH has demonstrated a track record of success. Such investments are to be made into so-called “Opportunity Zones.”
The proposed program is to invest in Teachers Villages almost exclusively in Opportunity Zones. The Opportunity Zone designation allows for an investor to 1) defer and then 2) reduce capital gain taxes that are due and have the potential for 3) future tax-free gains on the entire new investment, provided the investments are held for 10 years. To qualify, the gain must be invested in the Qualified Opportunity Zone Fund during a 180-day period that begins on the date of the sale or exchange that generated the gain.
The RBH Advantage
RBH Group, LLC (“RBH”) offers its investors access to risk-managed, tax-advantaged real estate returns through social impact investing. The firm’s investments focus on a triple bottom line: financial returns, social impact, and environmental impact.
RBH Group, LLC and its sister companies, RBH Project and RBH Management, offer full-service real estate financing, development and property management services focused on urban redevelopment multi-family, mixed-use projects in the United States.
RBH formed its first Qualified Opportunity Zone Fund in December 2018 to bring its Teachers Village project to municipalities across the country seeking workforce housing.
To date, RBH has deployed over $500 mm in capital in projects located in Qualified Opportunity Zones. RBH projects incorporates green sustainable building materials and practices (USGBC/LEED) landscaping, and transit-oriented design.
Our projects not only provide the potential for compelling tax-advantaged returns; they also directly and meaningfully impact lower-income areas and groups of potentially disadvantaged individuals. The RBH Opportunity Zone Funds offer solutions to all stakeholders: limited partners, municipalities, school districts, agencies, tenants/residents, labor/tradespeople, and contractors.
500M
OF CAPITAL INVESTED IN OPPORTUNITY ZONES