When Should You Start Planning an Opportunity Zone Investment?

Planning for Opportunity Zone 2.0

The Opportunity Zones program is entering a new phase. With Opportunity Zones 2.0 launching in 2027, investors have the chance to prepare for a framework designed to encourage long-term investment in revitalizing communities.

If you are wondering when to invest in Opportunity Zones, the answer begins with planning and education. Learning about the program ahead of time helps investors understand the structure, timeline, and features of upcoming Opportunity Zone projects.

At Urban Catalyst, we focus on helping investors understand the Opportunity Zones program and how it may fit into long-term planning strategies.

What Is OZ 2.0?

Opportunity Zones 2.0 represents the next phase of the Opportunity Zones program. The updated framework builds on the original legislation and introduces a long-term structure designed to encourage sustained investment in designated areas.

Key elements include:

• A permanent Opportunity Zones program, without a set expiration
• New Opportunity Zone designations beginning in 2027
• Continued emphasis on long-term investments in designated areas
• Focus on economic development and community revitalization

These changes provide a stable framework for investors interested in future Opportunity Zone projects, including funds expected to launch in 2027.

Why Early Planning Matters

Even before new Opportunity Zone funds are available, learning about the program can help investors understand how Opportunity Zone projects may fit within broader planning strategies.

Early planning can help investors:

Explore high-potential Opportunity Zones

Not all zones are the same. Researching areas with potential growth helps investors consider long-term opportunities.

Align strategies with long-term goals

Opportunity Zone projects often involve long-term commitments. Planning ahead ensures strategies fit with overall financial planning.

Prepare for future Opportunity Zone projects

Understanding Qualified Opportunity Funds and the types of projects involved helps investors be ready when new funds become available.

Consider community impact

The Opportunity Zones program is intended to support projects that contribute to community development, housing, and infrastructure.

How Investors Can Prepare for Opportunity Zones 2.0

Steps to prepare include:

• Learn about the Opportunity Zones program: Understand the framework and its potential applications.
• Consider long-term strategies: Explore how Opportunity Zone projects may align with broader planning objectives.
• Stay informed about emerging markets: Identify areas with ongoing redevelopment or growth.
• Follow experienced Opportunity Zone developers: Teams like Urban Catalyst provide insights into planning and potential opportunities.

Urban Catalyst and Opportunity Zones

Urban Catalyst is a real estate development firm focused on downtown San Jose through Opportunity Zone projects. The company works on projects that support long-term community development while providing educational resources for investors who want to understand Opportunity Zone planning.

By leading projects in designated Opportunity Zones, Urban Catalyst helps investors gain knowledge about planning timelines, project types, and strategic considerations for future Opportunity Zone initiatives.

Plan Ahead for a 2027 Opportunity Zone Fund

The transition to Opportunity Zones 2.0 in 2027 offers a chance to prepare for upcoming Opportunity Zone projects. While funds will open in 2027, early planning helps investors understand:

• How Opportunity Zones may align with long-term strategies
• Which areas are positioned for potential redevelopment or growth
• The types of projects that may become available in future Opportunity Zone funds

Join the Urban Catalyst 2027 Opportunity Zone Fund Interest List to receive updates about new Opportunity Zone projects and future fund opportunities. This list allows investors to stay informed and plan ahead without implying any guarantee of outcomes.

Now is the time to learn and plan so you are ready when the next phase of Opportunity Zone funds launches.

Important Disclosures

The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof ("Issuer").

All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM.

With respect to any performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. Assumptions are more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment.

These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified.

Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.

Real Estate Risk Disclosure:

- There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – These assets are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
- Stated tax benefits – Any stated tax benefits are not guaranteed and are subject to changes in the tax code. Speak to your tax professional prior to investing.

Opportunity Zone Disclosures

- Investing in opportunity zones is speculative. Opportunity zones are newly formed entities with no operating history. There is no assurance of investment return, property appreciation, or profits. The ability to resell the fund’s underlying investment properties or businesses is not guaranteed. Investing in opportunity zone funds may involve a higher level of risk than investing in other established real estate offerings.
- Long-term investment. Opportunity zone funds have illiquid underlying investments that may not be easy to sell and the return of capital and realization of gains, if any, from an investment will generally occur only upon the partial or complete disposition or refinancing of such investments.
- Limited secondary market for redemption. Although secondary markets may provide a liquidity option in limited circumstances, the amount you will receive typically is discounted to current valuations.
- Difficult valuation assessment. The portfolio holdings in opportunity zone funds may be difficult to value because financial markets or exchanges do not usually quote or trade the holdings. As such, market prices for most of a fund’s holdings will not be readily available.
- Capital call default consequences. Meeting capital calls to provide managers with the pledged capital is a contractual obligation of each investor. Failure to meet this requirement in a timely manner could elicit significant adverse consequences, including, without limitation, the forfeiture of your interest in the fund.
- Opportunity zone funds may use leverage in connection with certain investments or participate in investments with highly leveraged capital structures. Leverage involves a high degree of financial risk and may increase the exposure of such investments to factors such as rising interest rates, downturns in the economy or deterioration in the condition of the assets underlying such investments.
- Unregistered investment. As with other unregistered investments, the regulatory protections of the Investment Company Act of 1940 are not available with unregistered securities.
- It is possible, due to tax, regulatory, or investment decisions, that a fund, or its investors, are unable realize any tax benefits. You should evaluate the merits of the underlying investment and not solely invest in an opportunity zone fund for any potential tax advantage.

The above material cannot be altered, revised, and/or modified without the express written consent of Urban Catalyst.