An investor who has triggered a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they roll that gains into a Qualified Opportunity Fund (QOF) within 180 days. Sullivan Communities has been investing in Opportunity Zones before they were Opportunity Zones. Contact us to learn more about how you can take advantage of not paying taxes on gains generated from sales or exchanges of assets.

1. Multifamily Real Estate with 13-15% yields and 25-30% IRR’s
QUALIFIED OPPORTUNITY ZONE INVESTMENTS & BENEFITS EXPLAINED

2. Sullivan Communities (Sullivan) is a vertically integrated real estate
investment, management and community development firm. Sullivan
specializes in the acquisition and repositioning of 50 - 200 unit under-
performing B and C class multifamily / mixed-use buildings and
complexes.
• Target 14-16% repositioning cap rates and 30% IRR’s
• Focus on niche and difficult-to-source properties
• Experienced acquisition, repositioning, management and sale of
multifamily and mixed-use assets
• Niche acquisition strategy focused on submarkets where new
construction is limited
• Recession resistant properties
• 20-30% returns on capital improvements
• Tax efficient: opportunity zones
• Minority owned firm
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Company overview
Pipeline of $20 million
of properties
Willing to give our
partners an “off-market”
first look at deals
Sullivan is looking for
equity partners
First deal: $3 million
equity investment, 7%
ROI YR1

3. Michael Brown
• Former technology executive with 18 years of experience across healthcare, management
consulting, mobile and interactive disciplines.
• 10 years of experience in acquisitions, repositioning, sales and management of land, mixed-
use and multifamily properties.
Ashish Khatana
• 20+ years of insight and expertise in development, construction management and design
• Completed approximately $2 billion in real estate acquisition and development projects
served in an execution or management capacity.
Gib Dunham
• Former investment banker and a private equity portfolio manager at Bear, Stearns & Co.,
Inc., Lipco Partners, Emigrant Capital and served as Chief Investment Officer at Alternative
Capital Advisors where he was the head of allocations for a $20 billion Asian institution.
Ryan Ragano, CPA
• Managing Member of Ragano CPA PLLC, specializes in real estate syndicates (structure,
funds governance and taxes) throughout the US.
Sullivan Communities LLC | @WeRevitalize | WeRevitalize.com
the Team

4. About Opportunity Zones
• New investment vehicle created as part of
the Tax Cuts and Jobs Act of 2017
• Created to incentivize investment in
targeted low-income urban and rural
communities
• Designated by state and federal
governments to provide long-term
economic investment and development
Purpose of Opportunity Zones
• Revitalization blighted areas through
increased access to capital
• Foster development of affordable housing
and growth of universities
• Maximize opportunities near existing
transit hubs
• Build social infrastructure and improve
logistics
Most of Sullivan’s investments are located in tax friendly Opportunity Zones.
An investor who has triggered a capital gain by selling an asset like stocks or real estate
can receive special tax benefits if they roll that gains into a Qualified Opportunity Fund
(QOF) within 180 days.
Sullivan Communities LLC | @WeRevitalize | WeRevitalize.com
ABOUT Opportunity Zones

5. OPPORTUNITYZONETAXBENEFITS
ON CAPITALGAINS
1. Invest capital gains in Qualified Operativity Funds (QOF)
by December 31, 2019 defer gains till December 31, 2026
2. Hold investment in QOF for 5Yrs receive 10%-15%
reduction on the gains
3. Hold investment in QOF for 10Yrs; no tax on gains
generated from sale or exchange

6. Opportunity Zone Benefits in detail
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Temporary deferral of gain by investing in a QOF until the earlier of the
disposition of the investment or December 31, 2026.
Step-up in investment of the gain. Ten percent of the gain may be
excluded permanently if the investment is held for five years. An
incremental 5 percent (total of 15 percent) may be excluded if held for
seven years. Both holding periods are through December 31, 2026.
The entire gain from sale of the "interest in" the QOF may be
permanently excluded if the investment is held for at least 10 years.
The exclusion of this gain relates only to the value increase in the
investment in the QOF.
Various state and local project incentives and support may also
provide added value that could offset as much as 10 to 15 percent of
project costs.

7. • A Qualified Opportunity Zone (QOZ) business is a trade or business in which
70% of the tangible property owned or leased by the business is in a QOZ.
• QOZ business must comply with certain stipulations:
1. 50+ percent of the business's total gross income is derived from the active conduct of
such trade or business in a QOZ
2. 70% of the business's intangible property is used in the active conduct of
such trade or business in a QOZ
3. Less than 5 percent of the average of the aggregate unadjusted basis of the
business's property is attributable to nonqualified financial property
4. Business is not a private or commercial golf course, country club, massage
parlor, hot tub facility, suntan facility, racetrack or other facility used for
gambling, or any store the principal business of which is the sale of alcoholic
beverages for consumption off premises.
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Qualified Opportunity zone Fund Requirements

8. Opportunity Zone investment Example
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-Tax on Appreciation (37%) $14,660
After Tax Funds Available
After Tax Net Return
$87,961
-1.3%
Sales Price After 10 Years
-Tax onAppreciation
$ 162,889
0
-Deferred Capital Gain Tax (37%) $ 31,450
After Tax Funds Available
After Tax Net Return
$ 131,439
2.8%
*This slideisa hypothetical illustrationofmathematicalprinciplesas itrelatestothenewtaxcodeand doesnot predictorprojecttheperformanceofan investmentorinvestmentstrategy
Source:VirtuaPartners(US),LLC-Copyright2018
10 year hold in a fully taxed portfolio:
5% annual investment appreciation;
37% combined tax rate;
Capital Gain $100,000
-Tax Payable (37%) $37,000
Total Capital to Invest: $63,000
Sales Price After 10 Years $102,620
10 year hold in an Opportunity Fund:
5% annual investment appreciation;
37% combined tax rate;
Capital Gain $100,000
-Tax Payable 0
Total Capital to Invest: $100,000
Result: 300-400 basis points per year increased return

9. • MUST invest capital gains in Qualified Opportunity Zone before December 31,
2026.
• Gains will be picked up into income at the earlier of the date the investment is
sold or December 31, 2026.
• On December 31, 2026, 85% of the original deferred gain will be recognized.
• Recognize the lesser of the original gain or the fair market value at that date.
Gives benefit if the investment decreases in value.
• Appreciation on investment not recognized until asset is sold and if held for 10
years – then step up to the FMV and now tax-free.
• Planning Opportunity – need to plan for this recognition event and the cash
flow needed to pay tax at this date.
Sullivan Communities LLC | @WeRevitalize | WeRevitalize.com
opportunity zone Investing Rules

10. werevitalize.com | @werevitalize
Sullivan Communities LLC
PO Box 4211 Jersey City NJ 07304
Michael Brown | 845-670-4647 | michael@werevitalize.com
Sullivan Communities LLC | @WeRevitalize | WeRevitalize.com