US Qualified Opportunity Funds, LLC, a subsidiary of BAS Holdings Investments, LLC, based out of Miami, Florida led by Brian A. Sidman has partnered with RevOZ Capital (“RevOZ”), a leading real estate private equity investment firm to acquire an approximately 127,000 square-foot office building (“the Property”) located in an Opportunity Zone in downtown Sacramento, CA. The redevelopment reflects the continued emergence of the Downtown Commons (“DoCo”) district and is the latest in a series of investments by RevOZ and BAS Holdings Investments, LLC in historically undercapitalized communities.
Located at 660 J Street, the four-story building will undergo significant rehabilitation, re-imagined as a mix of office and retail space and will complement the recently completed DoCo sports and entertainment district which includes the Golden 1 Center, home of the Sacramento Kings, and Sawyer Hotel. The Property was acquired from SG Downtown, LLC, an affiliate of the Sacramento Kings ownership group. Construction is scheduled to finish by late 2021.
The Property sits within a designated Opportunity Zone, selected by Governor Jerry Brown and the State of California in 2018 to incentivize greater private investment and community benefit in specific census tracts. Opportunity Zones are a bipartisan initiative established in 2017 by the federal government to stimulate sustained private investment in low-income urban, suburban and rural communities across the country. There are over 8,700 Opportunity Zones nationally, 879 in California, and 43 in Sacramento County, including nearly all of a downtown Sacramento area beset by poverty rates consistently in excess of 30-40% for decades.
The project will generate substantial new jobs and increased economic activity.
“Once completed, 660 J will be home to hundreds of jobs. The economic impact will enhance the renaissance that downtown Sacramento has experienced in recent years, driven by the investments made into the DoCo district,” said Alex Bhathal, Founder of RevOZ Capital.
“The Opportunity Zone program is a natural vertical on our real estate platform as we target locations with strong demographics and business plans entailing significant redevelopment,” said Brian A. Sidman. “The ability to meet required substantial improvements to be compliant with the Opportunity Zone program without requiring a ground up vertical development made this appealing investment even more attractive. Above all else, the partners and team associated with this project are best in class. We are elated to be a part of this project located in an essential market that is positioned for substantial growth coming out of the pandemic.”
The partnership has selected Cushman & Wakefield to market the Property to tenants seeking an unparalleled, highly amenitized workplace situated at the epicenter of downtown Sacramento’s revitalization. With a renovation design planned by sustainable architecture firm LPA, the building will be LEED-certified with a minimized environmental footprint achieved through reduced energy consumption, water conservation and improved air quality. Renovation plans include re-skinning the building’s exterior, recreating the building’s lobby, adding on-site amenities, creating new outdoor space, updating restrooms and modernizing building systems. The renovation incorporates several features as a response to the COVID-19 pandemic including improved air circulation and filtration and enhanced touchless systems.
About US Qualified Opportunity Funds, LLC
U.S Qualified Opportunity Funds, LLC (“USQOF”) serves today’s dynamic market by providing investment opportunities in opportunity zones to qualified investors. Opportunity zones are specific geographic areas designated as economically distressed by the local state governments. After thorough diligence, USQOF creates partnerships designed to capitalize on what Congress has made available to direct high-impact investing. By leveraging these incentives, investors may receive a mixture of cash flow from operations, long-term capital appreciation and major tax benefits.
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investorservices@basholdings.com
