INVESTING IN UNDERSERVED COMMUNITIES

4S Bay Partners is committed to bringing change to underserved communities and directs many of its investment dollars toward this commitment. By bringing funds directly to these areas, we are supporting the opportunity toward a more equitable and sustainable future.  

To help realize our commitment to serving communities of need, 4S Bay Partners LLC turned toward an existing federal program. This program was designed to allow investors to earn tax incentives while investing in real estate located in lower income areas.

Congress implemented the federal Opportunity Zone Act (OZ) incentive as part of the sweeping tax reform, Tax Cut and Jobs Act, which became law in 2017. The OZ incentive is complementary to our 4S Bay initiatives. OZ brings in equity investments and is the true engine to spur investment into the communities that need it the most.

There are three tax benefits for investing in OZ:

•  Temporary deferral of taxes on earned capital gains.

•  Up to 15% Step – up in basis of gains invested.

•  Permanent exclusion of taxable income for investments held onto for at least 10 years.

  
  

OZ tax incentives can be used for commercial real estate and business investments. 4S Bay Partners invests in both types of these businesses.

In Philadelphia, 4S Bay has partnered with DePaul USA’s DAX program to house students from several local universities, allowing these students the stability needed to focus on their studies by providing housing, case management, and financial assistance.

In Chicago, our 11,000-square-foot Center housed the Chicago Cook Workforce Development Partnership which served as a hub for education and occupational advancement for local citizens.

In Los Angeles, we have embarked on a bold development to bring jobs, social construct and revitalization to the Baldwin Hills area with the Stocker Street Creative.  Over the past 10 years, we have invested tens of millions of dollars in these projects across the USA.

While each of these investments provides 4S Bay Partners with tax incentives, the OZ program will only work with individual investors stepping up and providing the funds.  Our commitment to provide relief to underserved communities can only be realized when other investors step up as well. We are proud to serve as a leader in OZ investing.