For years, Opportunity Zones were treated like a temporary loophole. Most investors viewed them as a way to defer taxes rather than a strategy to build lasting wealth.
With the introduction of the new OZ legislation (OZ-2), this generational opportunity has changed permanently. The new legislation transforms Opportunity Zones into a permanent tax-advantaged platform that can deliver one of the best after-tax returns of any real estate asset and most other alternatives.
The key is no taxes on the gain, no depreciation recapture and significant value creation. The challenge and key to success is in strict market selection and product discipline, that is need behind each investment.
Why OZ-2 Is a Generational Opportunity
1. Permanent Tax Efficiency
OZ-2’s permanence allows capital to compound indefinitely, tax free. Investors are no longer racing against arbitrary deadlines. This creates a structural advantage that compounds wealth over decades, not years.
2. Alignment With Growth and Demographics
Many OZ-qualified areas overlap with the next generation of high-growth corridors. These include logistics-adjacent submarkets, multifamily infill, and mixed-use districts driven by migration and infrastructure investment.
3. Institutional Capital Hasn’t Caught Up Yet
Most large investors have not yet recognized that OZ2 creates a tax-adjusted IRR profile that can outperform traditional private equity real estate. Early movers with operational expertise can build portfolios that combine alpha and resilience.
Supporting Data:
According to the Economic Innovation Group, investment into Qualified Opportunity Funds has grown every year since inception, reaching 40 billion in some years. This validates the growing momentum behind the OZ framework.
Source: Economic Innovation Group
The StarPoint Advantage
StarPoint has been investing in Opportunity Zones for years and has completed over $100 million in projects with several achieving substantial realized returns. OZ-2 builds on that experience and amplifies our competitive edge.
We focus on prime infill markets where supply is limited and value creation is driven by fundamentals. Our strategy in multifamily and industrial development provides consistent, tax-efficient returns.
This is not a new initiative for StarPoint. It is a natural progression of the disciplined approach we have executed successfully for decades.
Supporting Evidence:
Independent research by Bekkerman and Cohen found property values in OZ-designated tracts appreciated 4–6 percent more than comparable areas after designation. This supports StarPoint’s philosophy that market selection and operational execution drive outperformance.
Source: The Impact of the Opportunity Zone Program on Residential Real Estate – Bekkerman & Cohen (2023)
The Takeaway
OZ2 is not a temporary tax strategy. It is the foundation of a new asset class designed for patient capital and generational wealth creation. Investors who understand this shift and align with experienced operators will lead the next decade of real estate performance.
Learn how StarPoint’s OZ2 program targets high-growth, tax-advantaged real estate across the United States.
Visit www.starpointproperties.com to explore this generational opportunity.
