We’re seeing momentum gaining in the Opportunity Zones Marketplace as deal activity is on the rise. And now that the second set of revised guidelines has been issued by the Treasury, we’re going to see even more movement within the industry, especially on the actual business development front. In this podcast, we spoke with Attorney Paul Wassgren, a Partner at the law firm of DLA Piper, to get his feel on what we can expect in the industry moving forward and how his clients are using “Blind Pool Funds” as an Opportunity Zone strategy for both real estate projects and for the creation of functioning businesses within Opportunity Zones – as well as why investing in an Opportunity Zone Fund has some advantages over a traditional 1031 Exchange.
Most Opportunity Zone Funds concentrate on syndicated real estate centric deals, but with the recently released OZ guidelines, many expect that to change with a shift towards developing operating businesses within Opportunity Zone parcel locations. Nevertheless, with Blind Pools, the process is the same for the Fund managers: create the PPM and general offering package and present it to their investors in hopes of their participation. But what needs to be understood is investors should not invest in an Opportunity Zone Fund, blind pool or not, just for the tax benefits! A bad investment is a bad investment, and as show guest Mr. Wassgren mentions on the podcast, investors need to have confidence that the fund managers of a blind pool (as well as all the decision makers involved) need to be competent and thoroughly vetted before an investment takes place. When done properly, it’s a case of “doing well by doing good”. He can be reached by email or at 310-595-3035. In addition, you can get more information at the DLA Piper website here.
ABOUT OUR GUEST: Paul Wassgren
Paul Wassgren practices at the intersection of corporate law, real estate, and securities. He regularly represents funds, real estate sponsors, and investors. Paul has extensive experience in the areas of project and real estate finance, acquisitions, general corporate law and private placements. His clients range in size from individual entrepreneurs to multinational corporations.
Before joining DLA Piper, Paul was a corporate partner at another AmLaw100 firm. Prior to practicing law, Paul worked as a consultant in the biotechnology industry, and was among the youngest licensed stock and bond brokers in US history.
DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning them to help clients with their legal needs around the world.
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