Developing Advanced Controlled Environment Agriculture Facilities Nationwide
OPPORTUNITY ZONE INVESTORS
We look for sites within Opportunity Zones. Our focus on real estate fundamentals and solid credit underwriting of the tenant/operator makes CEA facilities and ancillary agriculture-related industrial facilities (such as packing plants and cold storage facilities) an ideal investment vehicle for qualified opportunity funds looking for both agricultural and industrial opportunities. There are a number of advantages built into this product type that should be of interest to any fund manager:
Called the Newest Frontier of American Investment, Qualified Opportunity Zone (“QOZ”) projects are projected to create thousands of jobs in all 50 states while offering significant tax savings to investors. Designed to spearhead the revitalization, growth and economic development of hundreds of local urban and rural communities, QOZ projects will impact every industry nationwide. Tanya Development is uniquely positioned, qualified and focused on QOZ developments in the one industry that we can’t do without –agriculture and food production.
- Flexible deal structuring: Can be structured as either a long-term lease with facility cashflow participation or investment directly into the growing operation.
- No Entitlement Risk: Our site selection process focuses on “by right” projects where existing zoning permits the Ag-related use. Even in those situations where some level of discretionary entitlements are required, the sponsor will take entitlement risk and no funds will be considered committed to the project by the investor until all entitlements are obtained.
- Less Construction Risk: CEA facilities are typically pre-fabricated greenhouses.
- Quicker path to cashflow: Unlike traditional ground up construction of multifamily or other commercial property which might require 12-15 months of construction time and another 12-18 months to reach stabilization, crop cycles are relatively short (60-90 days depending on the type of crop) which produces almost immediate cashflow upon completion of construction. Couple these shorter crop cycles with shorter construction periods for CEA facilities and these projects can be built and producing cashflow in as short as 12 months.
- Aids in diversity of fund investments: As funds become too over-weighted in one or more asset classes, CEA investments provide a diversity hedge without a runoff in asset quality. Tanya can also structure investments in certain geographical locations to meet specific fund criteria.
- Steady returns: Controlled environmental agriculture means less risk of crop failure and a steady stream of produce available for sale throughout the year. There exists more than enough demand so long as the right type of crop is selected for that market area.
- Safe Harbor: An escrow can be established for the disbursement account to meet safe harbor rules for initial investment by the fund, with releases tied to achieving certain construction milestones.
DISCLOSURE: No one knows how long Opportunity Zone investments may be available and what if any changes may occur from one year to the next. We will only invest on known facts, regulations and policies. Serious investors should contact Tanya Development as soon as possible to review potential opportunities and projects.