Cultivate Ventures General Partnership (CVCOF-GP) founded the CVCOF family of funds, in 2018. CVCOF-GP managed funds leverage an in-house team of experienced financial, real estate, legal and accounting professionals, including full in-house OZ investment and compliance teams. CVCOF offers both traditional real estate funds, and our Qualified Opportunity Zone Funds open to eligible capital gains for OZ qualified investments. Since launch, CVCOF-GP has raised and closed CVCOF-I and CVCOF-II. Currently open is our CVCOF-III and CVCOF-IV Funds. To date, CVCOF-GP has raised $13.9M, and has total assets under management of $24.5M.
Cultivate Ventures' Funds target a complete suite of real estate for development, adaptive reuse, or investment in other real estate funds. Our funds and pipeline are diversified across a portfolio of high-yield real estate sectors, including: industrial, residential, hospitality, health care, and real estate technology. Portfolio allocation also targets long-term capital appreciation and short/near-term income to allow for short, medium, and long-term cash distribution planning and flexibility and smoother returns. Where possible, we develop and manage assets internally (via our in-house development group), or align with partner developers/funds for acquisition build-out, management and/or sale.
Cultivate Ventures Funds are typically 10 years with intent to return capital in five years, targeting annualized cash yields of 5%+ (after Y3), a pre-tax IRR of 15%+ per investment depending on risk profile, and 4x plus exit multiples. These returns are driven by a number of factors, including:
Capitalizing off-market opportunities and undervalued property to optimize entry pricing.
Identifying high cap rate adaptive reuse opportunities to drive higher rents and capital appreciation.
Invest in upper trending hard real estate to maximize downside risk and reserve capital.
Leverage debt and other tax advantage investment structures to maximize investment upside.
Take maximum advantage of complicated OZ rules to drive incremental OZ-bolstered returns while minimizing compliance costs through in-house expertise.
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Qualified Opportunity Zones
The Tax Cuts and Jobs Act of 2017 created Qualified Opportunity Zones to provide potentially significant tax benefits to investors who reinvest eligible capital gains into long-term qualified opportunity zone property and business investments. Cultivate Ventures CVCOF Qualified Opportunity Zone Fund investments are designed for investors who:
Have substantial capital gains and a desire to realize them in a
tax-efficient and flexible manner.
Want to invest in quality real estate.
Are looking for reducing near-term tax burdens.
Seek to realize net gain tax free (after 10 year QOF hold).
Qualified Opportunity Zone incentives are designed to boost returns an additional 25%+ over non-QOF returns (depending on ARR and yield).