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Stonebridge Opportunity Zone Fund II, LP

Passive Tax-Advantage Income from Commercial Real Estate

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Stonebridge Opportunity Zone Fund II, LP is a pre-packaged commercial real estate investment solution for high net worth individuals that leverages the incentives of the Tax Cuts and Jobs Acts of 2017. An Opportunity Zone Fund is an investment vehicle created by the federal government to incentivize private capital investment into specific geographic regions of the US called Opportunity Zones.

The Fund aggregates investors capital, deploys it into qualified assets, and manages the assets to produce income and capital appreciation inside a highly tax-advantaged structure.

Investments will consist of consist of select value-add commercial real estate investments in office, flex, warehouse, retail, and/or mixed-use properties located in Qualified Opportunity Zones.

Benefits to Investors:

  • Passive Income and Capital Appreciation
  • No Personal Guarantees
  • Portfolio Diversification
  • Substantial Tax Savings

Opportunity Funds allow investor to defer federal taxes on capital gains until December 31, 2026, reduce their deferred payment by up to 15%, and to pay $0 in capital gains taxes on profits from their investment into the Opportunity Fund if the investment is held for 10 years.

Why Invest in a Qualified OZ Fund

Investment into a Qualified Opportunity Zone Fund (QOZF) provides three (3) primary advantages:


Investor defers 100% of their capital gains until December 31st, 2026.


Investor reduced up to 15% of their deferred payment.


Investor receives a permanent exclusion from taxable income from the sale of an investment in a QOZF if the investment is held for at least 10 years.

“All else equal, an investor will be $44 better off for every $100 of capital gains they rolled into a QOZF than if they had chosen a more traditional stock portfolio instead.”


Investing in a QOZF vs. a Standard Stock Portfolio Scenario

An investor can more than 2X their after-tax return by investing in a qualified Opportunity Zone Fund instead of investing in a traditional stock portfolio.

Opportunity Zone Timeline

Opportunity Zone Timeline shown over 10 year period of time.

Impact of Hold Period

Given taxes are deferred until December 31, 2026, investments must be made by the end of 2019 to receive the 15% reduction and 2021 to receive the 10% reduction. Both deferral and future elimination remain after these respective dates.

Advantages of Commercial Real Estate vs. Traditional Investments

“We buy right, finance right, manage right, and exit when market conditions are favorable.”

Stonebridge OZ Investment Strategy

The Stonebridge OZ Fund II will target value-add commercial real estate assets valued between $2M and $15M. These assets are:


The asset purchase and capital expenditure requirements require too much equity from individuals and small family offices, but sit well below the minimum equity requirements of large institutions and funds


The smaller/less-sophisticated owners often neglect strategies to increase rents and occupancy, while larger institutions do not focus on assets of this size

Capital Starved

Owners of these assets are often reluctant or unable to fund revenue-generating capital for tenant improvements, common area improvements, repositioning and expansion initiatives, etc.