The Company’s purpose and strategy will focus on the acquisition, development, and operation of a 250-unit apartment project comprising approximately 14.5 acres on the Northwest side of the City of Ocala, Marion County, Florida. The Project is located two miles from an existing Interstate I-75 intersection and near an additional I-75 intersection that was recently announced. The Project occupies a portion of the former 477-acre Pine Oaks Municipal Golf Course.
- Tax deferral through 2026
- 100% in basis in 10 years, eliminating all capital gains tax
- Zero recapture
- Generate attractive risk-adjusted returns
- Defer capital gains taxes: Tax on invested capital gains deferred to 2026
- Reduce or permanently eliminate capital gains taxes
- Annual income depreciation sheltered
- Terminal gain on 10-year sale is tax free
- Preferred returns and return of investor capital
- 8% preferred return
- Return of capital investment 3.5 years
Please refer to “Risk Factors” in the Private Placement Memorandum for further discussion of certain risks associated with an investment in the Fund, which include:
- An investment in the Interests of West Oak Ocala I Fund, LLC is speculative and involves significant risk.
- The Interests are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their
Interests - There is no public market for the Interests.
Investors may not realize a return on their investment for several years. - The LLC is not providing any prospective investor with separate legal, accounting or business advice or representation.
THIS INFORMATION DOES NOT CONSTITUTE AN OFFERING OF, NOR DOES IT CONSTITUTE THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. THIS INFORMATION IS PROVIDED SOLELY TO INTRODUCE THE COMPANY TO THE RECIPIENT AND TO ENABLE THE RECIPIENT TO DETERMINE WHETHER THE RECIPIENT WOULD LIKE ADDITIONAL INFORMATION. ANY SALE OF SECURITIES WILL ONLY TAKE PLACE PURSUANT TO APPROPRIATE, DETAILED PRIVATE PLACEMENT MEMORANDUM, SUBSCRIPTION AGREEMENT AND/OR OTHER DOCUMENTATION.
The property is being acquired as part of a larger tract (a former golf course) slated for multifamily development and is being pursued in partnership with the City, which will allow for increased housing density.
Using a proven cast-in-place concrete “industrial style” housing shell system, the 14.5-acre project will deliver 250 units of apartments (80% market rate) on the Northwest side of Ocala. The property is strategically located in an Economic Opportunity Zone (EOZ) that provides owners with important capital gains tax incentives. The project is six miles from a jet-capable international airport and two miles from an existing Interstate I-75 interchange, with a second interchange (a diverging diamond interchange) just approved at Northwest 49th Street. The final phase of construction for the second interchange is set for early 2025.*
- Project is located near interstate highway interchanges and a major airport
- West Oak I is the only “Class A” elevator apartment building adjacent to the Ocala Water Recharge Park and the West Oak recreational amenities in the Ocala market
- Proximate to large national employers, including distribution and light industrial adjacent to the property, yielding continued growth for rental apartments.
- Strong IRR; early return of investor capital
* Ocala StarBanner, September 1, 2022: “Timeline revealed for new I-75 interchange north of U.S. 27 in Ocala.”
Fund, LLC
The West Oak Ocala I Fund, LLC intends to generate cash distributions for a 10-year hold with market appreciation followed by sale and distribution of profits while obtaining full EOZ tax benefits including deferral of current capital gains taxes and 100% step-up in basis, effectively eliminating capital gains taxation and depreciation recapture on sale.
Ocala is a city in Marion County, which has seen some of the fastest population growth in the nation. Historically an equestrian center, Ocala has in recent years emerged as an important logistics hub given its location in Central Florida near growing population centers. As a result, there is a critical shortage of workforce housing in Ocala, a need well-recognized by the City and County governments. Currently there is a low (<1%) vacancy rate and shortage of ~6000 apartments in the local market.4
The site is within five minutes of newly constructed distribution centers for Amazon, FedEx, Chewy, AutoZone and Shands Hospital, with two of the companies already expanding their sites.
• Source: West Oak – Project One Apartment Analysis, Ocala, FL PFM Consulting Group updated September 2022, p. 43
Company
West Oak Ocala I Fund, LLC
Property Company
West Oak Ocala I Business, LLC
Manager
West Oak Ocala I Management, LLC
Developer / Sponsor
Southampton Development Company, LLC
Maximum Offering
$30,000,000
Minimum Investment
$100,000 (10 Units @ $10,000 / Unit)
Qualifications
Accredited investors only seeking opportunity zone capital gains incentive
Preferred Return
8.00% Preferred Return (annual cumulative until return of capital)
Distribution Priority
1. 8.00% Preferred Return
2. Return of Capital
3. 70/30 until IRR of 12%
4. 50/50
Management Fee
1.5% of aggregate capital contributions, quarterly
Development Fee
5% of hard construction costs (one-time).
Operations Fee
0.25% of cash flow from the property, monthly
Holding Period
10-year minimum to achieve opportunity zone permanent exclusion of capital gains tax.
Southampton Development Company, LLC
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Experienced Management and Teaming Partners
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200+ years aggregate project development experience
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Completed numerous large-scale housing projects in Florida