Matthew Lamstein and Rebecca Calzontzi of the Firm’s Real Estate Group, together with William Gartland and Max Sender of the Firm’s Corporate and Business Practice Group, closed the acquisition and financing of a proposed 256-unit multifamily development in South Portland, Maine. The Firm’s client created a Qualified Opportunity Fund for the acquisition and development of the property located within a federally designated Qualified Opportunity Zone.
Mr. Lamstein and Ms. Calzontzi represented the client in both its initial acquisition of the membership interests of the selling entity, as well as the subsequent $39,000,000 construction financing for the project.
Mr. Gartland and Mr. Sender assisted in the formation of various ownership and management entities in connection with the formation of the Qualified Opportunity Fund, the drafting and negotiation of the limited liability company agreements, the drafting of the private placement memorandum, and the preparation and completion of all required securities filings. Mr. Gartland also assisted in the drafting and negotiation of the construction contract and related documentation necessary for the development of the project.
The new federal Qualified Opportunity Zones program was enacted as part of the 2017 Tax Cuts and Jobs Act to provide developers with tax incentives to encourage long-term investments in economically disadvantaged urban and rural communities nationwide through private sector investment vehicles known as Qualified Opportunity Funds.