Savoy Equity Partners

The AIC CEI-Boulos Opportunity Fund, a joint venture partnership between Allivate Impact Capital, and CEI-Boulos Capital Management, made an early equity investment in a housing initiative to bring long-term #affordablehousing to the predominantly Hispanic, Lake Cliff neighborhood of Southwest #Dallas. This effort consists of 3 properties (The Bowie, The Parker, and Swope & Mangold) creating 263 rental units affordable for renters who earn 60% to 100% of Area Median Income (AMI). Many of the units will be formally restricted to be affordable either at or below 60% AMI and at or below 80% AMI for a period of 75 years.?The project will create 730 construction jobs. The initiative is being developed by Savoy Equity Partners. Savoy has partnered with Texas Trees Foundation to plant 200+ trees in the Lake Cliff neighborhood. The project is transit-oriented with all properties located within a five to 15-minute walk from multiple public transit options managed by DART (Dallas Area Rapid Transit), including the Dallas Streetcar System that connects with Downtown Dallas. Read the full release: https://lnkd.in/gcRbwgUf Thank you to the following individuals for working with our team on this impactful project elevating Dallas: Barrett Linburg, G. Hunt Neurohr, Sam Spencer, Noelle St.Clair Lentz, Doug Schaeffer, Stuart Hean, Morris Fisher, Drew Sigfridson, Leah Batt, Gretchen Ascher, Dasha White, and Perashina LaMotte

We raised $8 million in equity and took out a $12 million loan to start building the Marcus Apartments in Dallas 76-units We did it in partnership with the City so we'll never pay property taxes We did it in the OZ tax structure so we'll never pay capital gains taxes either

From Outdated to Outstanding: Our Approach to Lasting Property Transformation A look at what goes into transforming aging apartments into modern, high-performing assets. Beyond Cosmetic Upgrades -- We strip properties down to their bones and rebuild them right: ? All-new HVAC systems ? Complete plumbing overhaul ? Modern roofing infrastructure ? State-of-the-art electrical systems Why This Matters -- Two key benefits of thorough renovation: 1. **Insurance Impact** While many older buildings face rising premiums, our approach delivers: ? Modernized systems = Lower risk ? Updated infrastructure = Better rates ? Reduced costs = Improved NOI 2. **Texas Tax Strategy** (2023 Update) The new "appraisal cap" affects sub-$5M properties: ? 20% annual assessment increase limit ? New construction value additions ? Entity sale advantages for buyers Long-Term Performance -- Our properties are positioned to: ? Perform consistently across market cycles ? Generate predictable returns ? Maintain value through market shifts ? Appeal to quality buyers when timing aligns The Results Left photo: Starting point Right photo: After full-scale renovation Bottom line: Creating enduring assets that perform today and appreciate tomorrow. --- Interested in real estate transformation? Follow for insights on practical strategies and market trends. #CommercialRealEstate #ValueAdd #RealEstateInvesting

New Era for Opportunity Zones? With Trump/Vance in the White House and Republicans controlling Congress, the Opportunity Zone (OZ) program stands a strong chance of extension – creating significant benefits for those with capital gains. Here's what investors need to know: ?? Why Opportunity Zones Matter: Tax Benefits: Defer capital gains taxes now, potentially eliminate them later. Hold for 10+ years, and your OZ investments could be ENTIRELY tax-free. Impact Investing: OZ funds bring private dollars into underserved communities, sparking growth where it's needed most. Win-win for investors and communities. ?? Bipartisan Roots, Clear Path Ahead OZs have long enjoyed bipartisan support, though recent Democratic leaders like Sen. Ron Wyden stalled its extension as Finance Committee Chair. With new leadership, those roadblocks are gone, setting OZs up for unprecedented growth and impact. ?? What a GOP Win Means for OZs: 1?? Extended Investment Window → Deferral likely pushed to 2028 2?? Investor Tax Discount → Potential 10% tax cut on early investments 3?? Targeted Oversight → New reporting ensures OZ funds target high-impact communities ?? Real-World Example: Step 1: Sell asset → $1M capital gains Step 2: Invest in OZ Fund → Tax deferred to 2027 (Maybe 2029 w/ extension) Step 3: Hold 10+ years in OZ project Step 4: Cash out → Potentially TAX-FREE ?????? ???????????? ????????: With a favorable administration ahead, Opportunity Zones are positioned to drive unprecedented change and offer robust benefits to investors. The window to maximize these benefits won't stay open forever. ?? Interested in learning more about OZ investing? Drop a comment below or DM me. #OpportunityZones #RealEstate #Investing #TaxStrategy

Many of our recent investors are recognizing gains from the recent run in public equities and diversifying tax efficiently in Dallas multifamily using the Opportunity Zone tax structure We're always glad to educate you on what we're up to

HUD Circulates Memo on Middle-Income Housing Initiatives which would undoubtedly help developers build more housing HUD is circulating a memo that could have a significant impact on new construction loans for housing restricted to 60% - 120% AMI tenants. While it's still pending approval, these changes are expected to be implemented within the next few months. ?? Key Proposed Changes: ? FHA 221(d)(4) Update: Potential increase to 90% Loan to Cost (up from 85%) and a more flexible Debt Service Coverage Ratio (DSCR) of 1.11. ? Target Audience: This program supports "Middle Income" earners—typically those earning between 60% and 120% of the area's average income, and up to 150% in high-cost areas. ?? Why It Matters: ? Many individuals in this income bracket struggle to find affordable, quality housing. ? The proposed changes could make it easier for developers to build more units for middle-income earners by improving the financial feasibility of projects. ?? Opportunities: ? Live/Local Initiatives in Florida: These potential updates could enhance the ability to create sustainable community developments. ? PFC/HFC in Texas: This remains a powerful tool for generating affordable housing when applied responsibly. While still under review, HUD’s memo signals their commitment to addressing the housing affordability gap for middle-income earners. The FHA 221(d)(4) program is poised to become more attractive for developers by allowing them to borrow more at better terms, enabling the construction of more affordable units. Once implemented, these rules would ensure that any apartment built under this program remains affordable for middle-income families, with local or state oversight to guarantee compliance. Stay tuned as these updates progress!

Moving the Needle in Multifamily Value-Add Investing Raising rents? Tough in today's market. Cutting expenses? Definitely possible. And my favorite area to focus on: WATER SAVINGS. Especially for older, master-metered properties (1985 or earlier). Here's the blueprint: ?? Step 1: Spot the Opportunity If water usage is over 250 gallons/unit/day, you’ve got low-hanging fruit. ? High water usage signals inefficiencies. ? Simple improvements can drastically reduce it. ? Effective water management = significant savings. We always start by reviewing old utility bills. We’ve seen annual usage over 500 gallons/unit/day in older, master-metered properties. After making improvements, we’ve brought usage down to less than 160 gallons/unit/day. The opportunity is there – just spot it. ?? Step 2: Take Action This takes a group of plumbers 2-7 days (depending on property size): ? ?? Replace/repair toilets, showerheads, faucet aerators. ? ?? Fix angle stops and supply lines. ? ?? Address active sink, shower, and underground leaks. The result? Substantial long-term savings for a relatively swift effort. Pro tip: We use Toto Entrada Two-Piece CST244EF(R) 1.28 GPF toilet. Reliable, cost-effective, and boosts overall savings. ?? Step 3: Do the Math Let’s run some numbers on a hypothetical 100-unit property using 300 gallons/unit/day: ? In Dallas, water costs about 1.1 cents/gallon. ? ?? Annual water bill: $120,500. Pay a plumbing company $50,000 to lower usage to 160 gallons/unit/day: ? New expected annual bill: $64,250. ? Annual savings: $56,000 ? Over 100% ROI ? Payback period: <11 months ? Value creation: $936,000 at a 6% cap rate Even properties that bill back tenants see the impact. Most can only pass through 80% of the expense. If tenants pay less to the water company, they have more disposable income for rent. ?? Step 4: Keep Savings on Track We install WaterSignal monitoring devices on all meters: ? ?? Real-time data collection. ? ?? Alerts for active leaks. ? ?? Ensures our savings measures stay effective. ?? Key Takeaway: Cutting expenses through water savings on older properties isn’t just about reducing bills—it’s about creating massive value and increasing NOI in a challenging market. ?? Have you tried similar initiatives? Drop a comment, and let’s share ideas!

This continues to be one of the most important charts you'll see on the direction of the U.S. apartment market, now updated with September data released today. Multifamily starts trail completions by the widest gap in recorded history through the first nine months of 2024. We completed 193,900 units more than we started so far in 2024, according to U.S. Census data released today. It doesn't take an economist to figure out what that means. Right now in 2024, renters are experiencing the benefits of peak supply. Apartment rents are flat or falling across most of the country. Some are even moving to newer, nicer apartments at lower or comparable rents compared to what they paid previously. But the completions > starts trends continue to point to significantly reduced supply in late 2025 and into 2026 (and likely further). That would likely put upward pressure on rents again. Obviously, this is no secret these days. Every GP and developer in trying to raise capital using data like this, but execution is much harder than strategy. Particularly on the development side (a topic for another day), it's very difficult to see a scenario -- barring some type of unprecedented epic shift -- where supply returns to these levels. #housing #multifamily #apartments

239 units. Formerly an RV & self-storage site, now transformed into much-needed housing in SE San Antonio. 42-year fixed rate at 4.5%. No property taxes. Opportunity Zone project. Savoy Equity Partners is proud to be partnered with Jarrett Woods on this. The deal involved navigating a complex "alphabet soup" of public and private partnerships. #OpportunityZone incentives were the key: HUD 221(d)(4), QOZB, QOF, TDHCA, PFC, NHTF—you name it, it was probably part of the plan. First units are delivered, and leasing is underway. Huge thanks to our local team for hitting the ground running! Despite a lot of new supply in San Antonio, there hasn't been much new workforce housing in SE San Antonio, and the reception has been fantastic so far. This 13-acre site has come a long way, and we're just getting started. We'll hold for 10+ years in order to make sure that we never pay capital gains taxes on the appreciation and never have to recaption the depreciation losses that we take along the way.

Last week, I revealed a powerful tax strategy. Today, I'm sharing an even more effective way to manage gains from stocks, bonds, and crypto—and it’s simpler than you think. Let’s talk about portfolio income, the cash from selling investments like stocks, bonds, or crypto. Most people assume there’s no avoiding a tax hit on gains. But what if you could keep more of those profits without following the old rules? Here’s the secret: separate your gains and losses on a line-item basis. This approach unlocks the true potential of Opportunity Zone (OZ) investing. Example: You have a $500k gain in Nvidia, but also a $500k loss in Gamestop. Most people report $0 gain. Instead, you could invest the $500k Nvidia gain in an OZ fund, and carry forward the Gamestop loss for future use. In 2027, when OZ taxes come due, you can use that carried-forward loss to offset the deferred tax from your Nvidia sale. This strategy isn’t just for stocks. Direct indexing lets you mix gains and losses to create the perfect balance. And here’s the real kicker: you can invest your gains in an OZ fund now, but you don’t have to identify your losses until 2026—giving you unmatched flexibility. Play your cards right, and you might never owe taxes on your OZ investment. Gains and losses can cancel each other out like magic. Fast forward 10 years: you sell your OZ property. No capital gains, no depreciation recapture—just a stepped-up basis. Your suspended loss carryforwards become Net Operating Loss carryforwards, which you can use against your W-2 income. Opportunity Zones are the only structure where non-RE professionals can fully utilize depreciation. This isn’t just about saving taxes today—it’s about compounding your wealth tax-free over the long term. If you have capital gains, consider #OpportunityZone investments. It took me 5 years to learn this much, and I'd be happy to answer any questions you have.