Q3 Update: Our Initial Opportunity Zone Investments

After over a year of waiting on IRS guidance and preparing, it's truly exciting to make our first Opportunity Zone investments.

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We are currently finalizing our first 4 investments worth over $8M in equity and expect to double this investment amount by the end of the year. Even though this is our first Opportunity Zone fund, we have been making investments with strong returns for years in what are now Colorado Opportunity Zones before they were designated.

We will raise a new fund every 6 months and are currently halfway through Fund 1. This both enables investor liquidity as soon as possible at the end of each fund's 10 year hold requirement and simplifies investor timelines as a capital gains tax must be placed in an OZ fund within 180 days of realizing it. Now that we are far along in the process of securing our first investments, we are spending a lot of our time fundraising and welcome conversations with you or people you know that have realized capital gains or will sometime in the near future.

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Our approach to due diligence and commitment to high quality investments has been made possible by our ability to access significant bridge capital. This allows us to find and commit to high quality investments quickly and provide the diversity of a pooled fund with the investor clarity of knowing which investments the fund will be making. We continue to find high value opportunities in growing areas of the state and are partnering with experienced teams around each investment to ensure strong management and execution.

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If you have or plan to have capital gains, we recommend having a conversation with us sooner than later. We too like to wait to the last minute to deal with taxes... but with the Opportunity Zone incentive, we expect there to be questions.

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Our First Four Committed Investments:

• 12 acre site in Grand Junction that borders the Los Colonias Riverfront, a new city development of parks, offices, an amphitheater, trails, and river access. We plan to build 96 units of multi-family housing and 55 units of glamping, camping and van spots. Net LP IRR is estimated at 12.83%.

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• 20 acre site in Meeker with existing infrastructure for 100 RV sites that cost over $2M to build. We purchased the entire site for only $260K and have started repurposing it to 43 RV sites with a village of tiny homes. The site is near a hospital with traveling nurses, high-quality hunting, ATV access and new bike trails. Net LP IRR is estimated at 16.26%.

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• 120 acre site in Naturita, which is a beautiful area between Moab and Telluride. The site has 14 existing cabins, lots of river access, and has planned incorporation of unique high-end tents, sites for van camping, multi-use trails both on site and throughout the BLM land it borders, and art installations from the Telluride Foundation. Net LP IRR is estimated at 17.96%.

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• 5100 SqFt building with highway visibility in Craig acquired for under $40 / foot. The building is being developed into a food hall with restaurant booths for lease alongside a modern/industrial dining area and community meeting place. Also negotiating lease with local entrepreneurs to use a portion of the building for a coffee shop and law office. Coffee shop will provide job skills training for special needs high schoolers. Net LP IRR is estimated at 14.8%.

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