Investing in Opportunity Zones


Opportunity Zones are transforming the way individuals and companies invest capital gains. The Sherbert Group partners with investors to explain and utilize this once-in-a-generation legislation. In order to receive maximum benefit, investments must be made before Dec. 31, 2019.

Literally, any U.S. taxpayer with capital gains can potentially benefit from this new tax incentive. But more broadly, beneficiaries may include:

  • Individuals or corporations looking to reinvest gains from sales of property in order to defer and reduce taxes;
  • Real estate developers and start-up companies located in an Opportunity Zone that are looking for equity investment, and;
  • Real estate sponsors, syndicators and/or private equity funds looking to create Qualified Opportunity Funds and then make investments in Qualified Opportunity Zone Property, including investments in corporations, partnerships or direct investments in property.

Additionally, with the right impactful team, this sweeping legislation will enable transformative redevelopment in low income communities throughout the nation.

On November 6th, 2017, The Sherbert Group hosted Senator Tim Scott and Secretary Dr. Ben Carson of Housing and Urban Development at Drayton Mills, a Sherbert Group development and the largest historic restoration project in South Carolina to-date.

Under the Opportunity Zone program, three major buckets of opportunity exist (in order to receive maximum benefit, investments must be made before Dec. 31, 2019):

  • Bucket 1 – Deferral: Gain on a property sale that is invested in a fund is deferred until the earlier of the date that the taxpayer sells its interest in the fund or Dec. 31, 2026.
  • Bucket 2 – Capital Gain Reduction: If the taxpayer invests in the fund for at least five years, 10% of the original gain is excluded. If the investment lasts for at least seven years, an additional 5% (for a total of 15%) of the original gain is excluded.
  • Bucket 3 – Appreciation Exclusion:  If the taxpayer invests in the Qualified Opportunity Fund for at least 10 years, all appreciation on sale of the new investment will be tax-free.

With 25 years of experience, The Sherbert Group is uniquely positioned to ensure these Opportunity Zone deals are properly funded, properly structured and properly managed. Tara Sherbert and her team have recently been traveling with representatives from the Federal Reserve Bank to speak at Opportunity Zone informative sessions all over East Coast.

For more information about investing in Opportunity Zones, email us at

Featured Project:

The Sherbert Group is currently developing and investing into University Center at Knowledge Park in Rock Hill, SC, a more than $200 million project bringing Class A office spaces, a food hall, the largest indoor Arena in the Carolinas, and more.

The project includes the rehabilitation of the 5-story Lowenstein Building. Built from 1939 to 1954, the building is one of the last remaining structures from the original textile plant, which operated from 1929 to 1998. After renovations, the project will include about 225,000 square feet of Class A office space.

In total, the Knowledge Park project is expected to bring 1,000 new residences, 300 new hotel rooms, $250 million in new investments and an additional 1.2 million square feet of mixed-use space.

UPDATE: A new building to be built in front of the Lowenstein building in the next year will include a 450 space parking deck, 17,000 sf of street level retail spaces and 90 apartments on the top two floors. This is just one of six buildings going up in University Center during the next 18 months along with the arena opening fall 2019. You will have many options in the years ahead to live, work, and play in UC!