Equis Realty Partners LLC and The Fountain Group LLC are partnering to create Peek Development, a joint venture focused on Opportunity Zone projects in New Jersey, which already boasts more than $85 million in projects and 300 market-rate units under contract.
The qualified opportunity fund will be led by Equis Managing Member Philip Evanski and Fountain Group Co-founder Emanuel Klein, Peek announced Thursday.
Equis, based in Jersey City, and Fountain Group, from Teaneck, are both multifamily focused real estate investment, management and development firms.
The QOF, according to Evanski, allows investors to receive beneficial tax treatment so long as 90 percent of funds are invested in Opportunity Zones. Investing in a QOF also allows investors to defer tax payments due on capital gains until December 2026.
“If the money remains in the fund for at least 10 years, investors will not owe any capital gains tax on the appreciation of assets in the fund,” Klein said in a release.
PEEK stressed the importance of multifamily properties as an impetus for the resurgence of urban areas and economic development.
Both Klein and Evanski serve on the East Orange Property Owners Association, the former as vice president and the latter as president and founding board member.
Opportunity Zones were created as part of 2017’s Tax Cuts and Jobs Act to incentivize investment in economically distressed areas. In April the U.S. Department of the Treasury approved 169 tracts, covering each of the state’s 21 counties submitted by Gov. Phil Murphy for the program.