Frequently Asked Questions

An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Opportunity Zones are designated by the state and certified by the IRS — roughly 8,700 areas in all 50 states have been designated.

With bipartisan support, Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. The Tax Code (26 U.S. Code § 1400Z-2) defines the tax incentives investors receive for investing in these zones.

Opportunity Zones are an economic-development tool — designed to spur economic activity and job creation in distressed communities by providing tax benefits to investors.

An Opportunity Fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investment in Opportunity Zones. A Qualified Opportunity Fund (QOF) is set up as a partnership or corporation for investing in eligible property located in a Qualified Opportunity Zone.

Investors can defer tax on prior gains invested in a QOF until the earlier of the date the QOF investment is sold or December 31, 2026. If the investment is held longer than 10 years, the investor may be eligible for an increase in basis equal to the fair market value on the date of sale.

• At least 90% of the QOF's assets must be invested in qualified opportunity-zone property.
• Capital gains invested must constitute equity, not debt.
• Properties must be substantially improved within 30 months, or have their original use begin with the fund.
• The fund generally engages in ground-up development or substantial improvement of existing property.

• Eligible capital gains include gains from taxable exchanges such as the sale of stock, bonds, real estate, or partnership interests.
• Both long-term and short-term capital gains can be invested.
• Gains taxed as ordinary income and gains from certain derivative contracts are not eligible.
• Each investor must invest the gains within 180 days of realizing them.
• Investors must elect to defer gain on the tax return for the year of the gain and the QOF investment.

Opportunity Funds allow investors to defer federal taxes on recent capital gains until December 31, 2026, reduce that tax payment by up to 15%, and pay no capital gains on Opportunity Fund profits when held 10+ years.

• Defer capital gains — invested gains are not taxed until the earlier of December 31, 2026 or the sale of the investment.
• Reduce capital gains — after 7 years, the original capital gains tax is reduced by 15% via a step-up in basis.
• No capital gains on fund profits — after 10+ years, profits from disposition of QOF interests are not subject to federal capital-gains tax.

We assembled a world-class team. We are locals who understand and appreciate rural America. We thrive in a fast-paced, values-driven culture and collectively work to reach bottom-line business goals in the fastest, most creative way possible.

Transparency is the best way to be an efficient and ethical organization:

• Initiatives and goals are communicated to the entire organization.
• Internal processes are designed to provide rapid response to customers — issues can be quickly escalated and resolved.
• Investors receive regular updates on each property's performance.

The minimum investment is $20,000 per offering — an entry amount previously unseen in the assisted-living facility private-equity world. Sun America retains a minimum 10% ownership in each deal to ensure full alignment with co-investors.

Targeted average yearly distribution is approximately 10%, paid quarterly over the hold period. Projected IRR to the SPE LP investor — net of all fees and promotes — is approximately 15%. These are projections based on underwriting assumptions and not guarantees.