SALISBURY OPPORTUNITY ZONES
A new program with the potential to attract investment capital into low-income areas of North Carolina was created by recently passed federal tax legislation, known as The Tax Cuts and Jobs Act (H.R.1). North Carolina Opportunity Zones will offer qualified investors certain tax benefits when they invest unrealized capital gains into these areas.
Key Federal Tax Incentives
- Temporary tax deferral for capital gains reinvested in an Opportunity Fund
- Step-up in basis for capital gains reinvested in an Opportunity Fund
- Permanent exclusion from taxable income of long-term capital gain
Benefits to Investors
- Investment funds defer federal tax gains on the sale of Real Estate, Stocks/Equities/Businesses/Other
- Investor must be placed in OZ Fund within 180 days of asset sale
- Investor Federal Tax Gain Reduced:
- 10% after 5 years
- 15% after 7 years
- 100% after 10 years
- No federal taxes on the appreciation of the project after 10 years
Ripe For Investment
- Renewal School District
- City-wide 10 Gbps FTTH Broadband Network
- Natural Area of Expansion
- Mid-way Between Greensboro and Charlotte, NC
- Transportation Hub, Featuring Upcoming Amtrak Expansion
- Salisbury listed as #13th Best Small Cities to start a small business (Wallet Hub, April 2019)
INVESTMENT OPPORTUNITY: THE EMPIRE HOTEL
History
A majestic, historic landmark, the Empire Hotel spans most of the 200 block of S. Main Street from W. Fisher to W. Bank Streets and will become a catalyst for future development. Attorney Nathanial Boyden began construction on the three-story building that would become the Boyden House. Construction lasted until December 1855 and the hotel formally opened on May 17, 1859
The property received an updated façade in 1908 and the towering twin domes were removed in 1967. Over the years, the building transferred owners to become the Davis House, the Central Hotel, and lastly, the Empire Hotel.
Current Status
The 104,000+ square foot hotel is located on a 1.39 acre site at 212-228 S. Main Street in Downtown Salisbury, North Carolina. Black Point Investments, LLC has plans to redevelop the property into 62+/- market-rate apartments, 7 live/work spaces, and about 28,000 square feet of co-working/flex space in the former Montgomery Ward main floor, mezzanine, and basement areas. The multi-year construction phase will result in an estimated $17 to $20 million project.
Funding Sources
- HUD 220 Urban Renewal and Concentrated Development Areas
- Historic Tax Credits: National Park Service Part 1 & 2
- Federal Historic Tax Credits; $3,454,781
- State Historic Tax Credits: $3,332,386
- Local Historic Landmark Status Completed
- Black Point Investments: $302,000 and 50% of monthly mortgage
- City-backed lease for former commercial space
- Opportunity Zone Fund: $2.5 Million
