radius logo
blog graphic

01 Apr 2019

NitNeil to Develop in Austin Utilizing QOZ


Atlanta-based NitNeil Partners announced on March 25, 2019 that it will develop an 877-unit self storage facility through a structured Qualified Opportunity Fund in Austin, Texas.

The development partnership acquired the land parcel and established the Opportunity Fund shortly after the IRS released guidance on the new legislation in 2018. By providing tax deferments and relief to investors, the Opportunity Zone legislation is designed to spur economic development, job creation and long-term investment in distressed neighborhoods across the U.S.

"We are pleased to be one of the first companies to structure an Opportunity Zone investment in the self storage industry. We're constantly looking for creative ways to deliver maximum value to our investors and development partners, while making a lasting impact on transitioning neighborhoods."

-Neil Sapra, managing principal, NitNeil Partners

Situated just two miles from the University of Texas at Austin and three miles from downtown, the facility will fill a void within the rapidly expanding East Austin neighborhood. Located at 2021 Airport Boulevard, the four-story, 100,000 square foot climate-controlled self storage facility has an anticipated completion date of March 1st, 2020.

NitNeil Partners is a real estate investment firm that develops and acquires self storage facilities in high growth markets throughout the Southeast and Southwest United States. NitNeil's portfolio consists of 1.5 million square feet spanning across nine states. With offices in Atlanta, Austin and Tampa Bay, the company continues to execute on underutilized real estate through creative partnerships with land owners, developers and investors.

What is an Opportunity Fund?

A qualified Opportunity Fund is a U.S. partnership or corporation that intends to invest at least 90% of its holdings in one or more Qualified Opportunity Zones. There are now more than 8,700 designated Opportunity Zones in all 50 states.

There are three types of investments that can fall under Opportunity Fund investments in the Opportunity Zone program:

  1. Partnership interests in businesses that operate in a qualified Opportunity Zone.
  2. Stock ownership in businesses that conduct most or all of their operations within a qualified Opportunity Zone.
  3. Property such as factory equipment or real estate located within a qualified Opportunity Zone.
Other Articles