Fund III Open to Investors

Connected

Four Points has unmatched community relationships and knowledge, ensuring the best diligence and investments.

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Regional Expertise

Colorado

Four Points is poised to be the leading Opportunity Zone fund in our fast growing state with our geographical focus.

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Large Population Growth

Capital

Activating investments and investors supporting a strategy of additive investments with strong returns.

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Private Equity Real Estate

Angel Investing

Four Points created and manages West Slope Angels.

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Deal Sourcing

OZ Fund

Four Points manages a nationally recognized Opportunity Zone Fund focused on Rural Colorado.

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How it works

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1. Realize and Invest Cap Gains

Investors have 180 days after realizing capital gains to invest it in an Opportunity Zone fund. Both the gain and the associated tax are invested in to the fund. Capital gains of any kind, including gains from stock or real estate, can be invested. Unlike 1031 exchanges, only gains are invested, allowing investors to extract their original basis. If the capital gain came from a partnership, the investor has until the end of the calendar year and 180 days into the following year to invest.

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2. Defer Taxes

By investing their capital gains, investors get to defer their capital gain taxes realized today until 2026. This enables the investment of taxes that would have otherwise been paid to the government.

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3. Reduce Taxes

If the capital gains are left in an Opportunity Zone fund for 5 years, a 10% step up in basis is applied (tooltip on step up in basis: a step-up in basis readjusts the value of an appreciated asset, providing a new cost-basis and lowering the tax liability), which equates to a 10% reduction in taxes. After the capital gains are invested for 7 years, an additional 5% step up is basis is applied, totalling in a 15% basis step up. With 2026 being the year tax is owed, 2019 is the last year to be invested for 7 years in an Opportunity Zone fund and receive a 15% basis step up. 2021 is the last year to receive a 10% basis step up.

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4. Eliminate Taxes

After 10 years of being invested, all appreciation made within the opportunity zone investment can be realized tax free. That’s 100% forgiveness of taxes for gains made in the OZ, resulting in a large boost (projected around 30%) to returns.

All Four Points funds have a 10 year hold requirement, which realizes all Opportunity Zone tax benefits.

Colorado Market Opportunity

Colorado's population is growing. Increasingly, this growth is occurring outside of the urban areas of the state. The forecast from the State of Colorado indicates that the growth in our target communities are some of the fastest growing in the country, resulting in a 25-39% increase through 2035. In addition to the increase in full-time residents, the increase in visitation to the state is a huge demand driver transforming the region.

Against the backdrop of tremendous population growth in under-the-radar areas, we formed our investment thesis and launched our first OZ Fund in the middle of 2019. With the increased pivot to remote work, driven by the onset and persistence of Covid 19, America is facing the largest and fastest transformation of the labor market since the World War II mobilization. This has accelerated and further strengthened our case by driving an even greater increase in new residents moving away from urban centers seeking quality of life, affordability, and access to the outdoors. We also believe that historically low interest rates are likely to persist, creating a healthy investment backdrop. Alongside this, the way people travel is changing, and outdoor hospitality is poised to thrive at the expense of traditional lodging.

Population growth is the underlying driver to our investments, but our specific focus on comparatively small markets, combined with our unparalleled exposure to under-the-radar projects, creates the opportunity to generate outsized returns versus a fund targeted on more obvious markets. Our team has the operational, geographic, community, and Opportunity Zone investment expertise to create efficient and outperforming investments in these areas.

Investment Strategy

We invest across Colorado communities outside of the Front Range (Colorado's metropolitan corridor). The equity exposure of each OZ Fund is targeted to be 80-90% ground-up, multifamily housing projects and 10-20% outdoor-focused hospitality projects, which are typically a combination of development and redevelopment. Although there may be a similar number of projects across both themes in each OZ Fund, the multifamily projects are much larger.

Targeted markets for housing demonstrate undersupply of rental housing, steady and growing population regardless of the pandemic, and are adjacent to both outdoor recreation and public investment in infrastructure. Targeted markets for outdoor hospitality locations are within close proximity to tourist attractions and outdoor recreation hubs.

Fund III Summary

We are pleased to announce that we oversubscribed our second OZ Fund and are well underway in turning these investments into income producing properties.

Fund III already has multiple committed projects. We secured significant, recyclable bridge capital before launching any of our funds, which enables us to commit to the highest quality investments independent of fundraising pace, eliminates project completion risk to investors, and offers a pre-committed portfolio of projects to prospective investors.

Fund III is our largest and most diversified fund yet, targeting a $50M equity raise for a portfolio of projects that fit our investment strategy described above. The remaining projects in the fund will be comparably themed to the committed projects in Fund III and our projects that are already fully funded.

Multifamily Project Portfolio

Mid-market, Multifamily Projects in Gateway Communities Anchor Our Funds

Fund III - Estes Park, CO

Deal Total: $26.2M

94 units of multifamily housing located on a 5.9 acre site immediately adjacent to hiking and mountain biking trails. Addresses the existing 1500 rental unit shortfall in Estes Park. Current entitlement includes an 1800sf day care center. Nearby access to Rocky Mountain National Park, fishing, skiing, and a strong tourism-based economy.

Fully Funded - Glenwood Springs, CO

Deal Total: $29.1M

100 unit multifamily housing that borders open space and is next to RFTA Park & Ride stop, which transports workers, skiers, and anyone else trying to get to and from the airport, Aspen, Carbondale and Snowmass. This development aims to address the serious rental unit shortfall in the City of Glenwood Springs and surrounding areas.

Fully Funded - Grand Junction, CO

Deal Total: $23.5M

96 unit multi-family housing and 55 units of camping and glamping on a 12-acre site along the Colorado River near downtown.The site borders Las Colonias, a new $14M city riverfront development of parks, an amphitheater, offices and river access. Over the bridge adjacent to our site are trailheads to world-class mountain biking and hiking.

Investor Reaches Goal for Grand Junction, Other West Slope Housing Projects.
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The Daily Sentinel. Read more.

Glenwood Residents Praise Revised Bell Rippy Development Plan.
-Post Independent. Read more.

Outdoor Hospitality Project Portfolio

10-20% of the Fund is Reserved for Tuck-in Projects, Primarily in Outdoor Hospitality

Fund III - Buena Vista, CO

Deal Total: $4M

Purchase and expansion of the Buena Vista KOA Journey. Located off of CO-285, this site is existing and cash-flowing in a budding outdoor recreation destination. Planned development includes updating and improving site infrastructure, the addition of tiny homes for nightly rental, and enhanced operational efficiency.

Fund III - Florence, CO

Deal Total: $1.5M

Purchase and expansion of Desert Reef Hot Spring just outside of Colorado Springs, 90 minutes south of Denver, adjacent to the Royal Gorge and near the Great Sand Dunes National Park. Planned development includes construction of additional hot pools, a new poolside pavilion, and boutique overnight accommodations.

Fully Funded - Naturita, CO

Deal Total: $3M

CampV is 120 acres of beautiful mountainous desert situated between Telluride and Moab. CampV will offer a nightly and short-term accommodations providing guests a mix of glamping options: historic cabins, vintage airstreams, boutique tents, as well as traditional RV parking and tent-style camping.

Fully Funded - Meeker, CO

Deal Total: $900K

Trail and Hitch is our first outdoor hospitality project to be fully activated and is exceeding expectations. A tiny home village and RV park adjacent to mountain biking, hiking, hunting, off-roading, and downtown Meeker. The wedding venue and brewery going in across the street is a great example of additive investment in the town.

A Former Mining Camp is Converting Into a Boutique Getaway.
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The Colorado Sun. Read more.

5 Tiny Homes in Colorado That Are Perfect for a Summer Getaway.
-Denver Post. Read more.

Prerequisites to Invest

Investors must be accredited with a minimum of $250K to invest. The OZ legislation enables investors to place pretax dollars in OZ funds. Capital gains must be invested within 180 days of realizing the gain, with exceptions for capital gains realized through a partnership. Also, due to this year's IRS extension, if you realized capital gains on or after October 4, 2019, they qualify for investment in an OZ Fund until December 31, 2020.

Requesting Access to Fund Documents

Four Points prepares very detailed information regarding each of our investments, our underwriting process and who we are working with in a Dropbox showcase. This showcase includes deal memos, our pitch deck, our PPM, and more. To gain access to the showcase, please message us and state that you are an accredited investor. We can then invite you to view the showcase via email.