The GPWM Difference
GPWM Funds is a group of private equity real estate funds providing investors tax advantaged real estate investing with a purpose. Our management team has decades of experience in real estate investment, tax law and investment management. We invest with developers and real estate companies across the country, focusing on sound real estate investments that deliver attractive, risk-adjusted returns while improving the local communities in which we invest.
The GPWM Team
Kirk Walton ~ Co-Founder and Managing Partner
Since the late 1990s, Kirk’s combination of expertise in taxation, estate planning, law, personal finance, and investments has helped him become an elite comprehensive wealth manager, catering to the needs of high net worth individuals and families, including many prominent entrepreneurs, top level executives and venture capitalists in the technology sector. Prior to founding GPWM, Kirk started Eagle Financial Advisors, a fee-only registered investment advisor, in 2002. Prior to founding his own firm, Kirk was a partner with the Ayco Company (now a Goldman Sachs Company) and is an active member of the Idaho and California state bars. Kirk graduated in 1994 from Brigham Young University, majoring in Classical Studies, and earned his J.D., magna cum laude, from Pepperdine University School of Law.
Philip Oleson ~ Co-Founder and Managing Partner
Serving the needs of prominent high net worth families and individuals for over two decades, Philip has developed a reputation as a creative and deeply analytical wealth manager. Philip’s contrarian style, attention to detail, and acumen with investments with an emphasis on real estate and private equity have helped him become an elite wealth manager. Prior to founding GPWM, Philip launched Noble Asset Management in 2002 as an independent wealth management firm. His career in financial services industry began in 1998 with Fidelity Investments. He has also worked for Morgan Stanley and Merrill Lynch.
Brian Lake ~ Vice President of Real Estate Operations
Since receiving his Finance degree from Utah State University, Brian has spent over twenty-five years in corporate Real Estate and Asset Management, serving in executive positions with several Fortune 500 companies including Albertsons and A&P Supermarkets. During his career, Brian has led teams and initiatives in Real Estate development with development budgets in excess of $100,000,000 annually. He has also led Portfolio Management teams with responsibility for portfolios in excess of 50,000,000 square feet.
Nick Dalzell ~ Financial Analyst
Born and raised in Idaho, Nick graduated from Boise State University in 2020 with a degree in Finance and received the Financial Modeling and Valuation Analyst certification from the Corporate Finance Institute. At GPWM, Nick is responsible for creating models and conducting investment analyses for potential opportunities. He spends his free time outdoors, enjoying the natural beauty that Idaho has to offer.
What are Opportunity Zones?
Opportunity Zones—The Big Picture
Qualified Opportunity Zones (QOZs), created as part of the Tax Cuts and Jobs Act of 2017, are designed to stimulate economic development in underserved communities nationwide. This two-way benefit enables investors to give back to communities by creating jobs, supporting local businesses and stimulating economic growth while at the same time realizing significant tax benefits.
At the onset of QOZ legislation, the GPWM team, with its collective, unique experience in both real estate investment and asset management, quickly understood the magnitude of these tax benefits. While other asset management companies offer QOZ investment opportunities, GPWM has carefully monitored the evolution of the rules and regulations governing QOZs and has created a fund structure designed to not only qualify for, but also to maximize, these benefits. To date, we have raised and placed over $160 million of equity in Qualified Opportunity Zone projects.
Benefits of Qualified Opportunity Zones
Qualified Opportunity Zone Funds—A Three-in-One Benefit Qualified Opportunity Zone Funds(“QOFs) allow investors to invest and shelter capital gains by offering three distinct tax benefits.
Benefits:
- Pay Later
- Pay Less
- Don’t Pay at All
To take advantage of these three benefits, a taxpayer needs to invest the capital gain generated from any asset sold into a QOF—generally within 180 days from the date the gain was triggered—and claim the QOF benefits on their tax return.
Summary of Tax Benefits of QOF investment:
- Pay Later: Defer paying tax on capital gains until April of 2027.
- Pay Less: Reduce tax by 10% increase in basis for QOF investments made by December 31, 2021. (Additionally, accelerated depreciation from Cost Segregation should further reduce, if not eliminate, capital gains tax due in 2027 by providing offsetting passive activity losses generated by the depreciation).
- Don't Pay At All: Eliminate tax on QOF Assets sold more than 10 years after investing in the QOF.
Additionally:
- Unlike other real estate investments, there is NO TAX on depreciation recapture on QOF assets sold more than 10 years after investing in the QOF. (Even though QOF investors receive all the benefits of the depreciation deductions that apply to other real estate investments.)
- Upon stabilization of a project, investors may receive tax free distributions from a cash-out refinance, which may result in partial return of capital. For GPWM Growth QOF investors during the QOF investment window, the refinance proceeds will be used to acquire additional QOF assets which will also grow tax free inside the QOF.
GPWM OPPORTUNITY ZONE Funds
GPWM Funds Offer Two QOF Investment Strategies
GPWM Reinvestment Strategy Funds:
The Reinvestment Strategy Funds are uniquely designed to compound the tax free growth offered by Opportunity Zones by reinvesting all available cashflow into additional Qualified Opportunity Zone (QOZ) projects. However, the tax law only allows QOFs to acquire more QOZ projects through 2027. Thus, during the window when projects acquired could qualify for these tax benefits, the Reinvestment Strategy Funds generally will continue to acquire more QOZ projects for the funds, and after that window closes, the Reinvestment Strategy Funds will distribute available cash flow to investors. This includes potential for future tax free refinance distributions.
GPWM Distribution Strategy Funds:
Unlike the GPWM Reinvestment Strategy Funds, the GPWM Distribution Strategy Funds generally will distribute all available cash flow to investors. The GPWM Reinvestment Strategy Funds will follow a long term hold strategy to take advantage of the benefits of longer tax free appreciation and additional years of depreciation deductions that will not be subject to depreciation recapture.
Financial Benefits of QOF Investing
BENEFITS OF INVESTING IN GPWM FUNDS
- Diversification of projects. GPWM Funds provide diversification of geographic markets, developers, asset types, tenants, loan profiles, etc.
- We focus on compelling real estate projects independent of OZ tax benefits.
- We have a robust pipeline of high quality projects through years of working with qualified developers with regional expertise.
- Projects acquired with intent for long term hold. Most OZ funds focus on a ten year hold to qualify for tax free growth. Our funds intend to maximize tax free growth by holding the assets for a longer duration.
- We focus on core real estate in long term growth markets with an emphasis on historically defensive assets classes of multi family and climate controlled self storage.
- Selectivity. We shy away from non-conforming tax states (CA, MA, MS, NC).
- Favorable income tax environment. We favor states that have favorable or low state income taxes.
- We focus on a blend of new construction and renovation.
- Diversification of tenants to reduce real estate portfolio risk.
GPWM Opportunity Zone Projects
Project Approach
GPWM invests with multiple developers across the country who possess specific regional and asset type experience and expertise. Because we do not develop our own projects, we are free to seek out markets and asset types that we believe offer compelling, long-term growth opportunities, while avoiding the obligation to invest in every project a developer may have. This independence and objectivity motivates us to negotiate the best investment terms in favor of the fund. We also diversify further by including a mix of value-add renovation or reuse projects, in addition to new construction. We apply a rigorous selection process and have reviewed hundreds of potential QOZ projects.
Since July of 2019, we have placed over $165 million of equity in 15 different developments. These investments were made with six different developers for projects in eight states. This represents approximately $465 Million in Real Estate value. This approach provides investors a diversified portfolio designed to reduce concentration risk on many levels.
Invest
Investor Portal:
Investors may access the following portal for accounting and fund information.
gryphon.partnershipaccounting.com
Partner With GPWM:
At GPWM Funds we look to partner with experienced developers with a proven track record and regional expertise. To submit your project for funding consideration please contact Brian Lake at 208-258-0536.
