Promised Land Opportunity Zone Fund
Promised Land Opportunity Zone Fund
- Unique opportunity to participate in a large-scale opportunity zone investment vehicle of US farmland.
- Private investment fund focused on acquiring and improving farmland in qualified opportunity zones ("QOZs") in the United States, as designated under U.S. tax provisions enacted in 2017.
- Actionable opportunity with an
- Initial Portfolio composed primarily of fixed rate leases (~90%).
- Expected initial property level NOI yield for 2022 of +3.7%.
- Geographic focus in rural, agriculturally dependent communities to spur economic revitalization and job creation.
What is a QOZ?
What is a QOZ?
QOZs are certain economically distressed communities in the United States where new investments, under certain conditions, may be eligible for preferential tax treatment. The Fund was created to acquire, improve, and stimulate economic development of land located in QOZs.
Opportunity Zone Benefits
Opportunity Zone Benefits
- Capital gains tax deferred until the earlier of sale or 12/31/26.
- Permanent reduction of 10% of gain if held for at least 5 years.
- Exclusion of Future Gain: Permanent exclusion of the appreciation of the opportunity zone investment if held for at least 10 years.
- Lower incremental capital required for improvements compared to QOZ real estate developments.
- Capital improvements (e.g. irrigation, drainage, or storage) increase farm productivity and generate higher rents.
Why Invest in Farmland?
Favorable Long-Term Supply/Demand Dynamics
- Structural demand growth: Population growth, per-capita GDP growth, and evolving diets focused on protein.
- Scarce supply: Urbanization and regulation limit availability of new farmland.
- No Vacancy: Virtually 100% land utilization.
Consistently Secured and Attractive Returns
- Steady historical long-term farmland total returns of 12.1%3.
- Positively correlated with inflation & gold; negatively correlated with S&P 500 & REITs.
Farmland Lease Structures and Capital Needs
- Leases are primarily fixed with some variable rent components.
- Lease durations of 3 – 5 years depending on crop variety.
- Limited re-leasing risk due to high utilization.
- Limited recurrent capex, tenant improvements, or leasing commissions.
Positive Technology and Innovation Impact
- Improvement of crop yields results in higher profits for farmers.
- Mapping technology facilitates origination and underwriting for disaggregated assets.
Large-Scale Opportunity for Aggregation
- Highly fragmented sector with ~65% of farms valued under $10 million.
- Majority of farmland is owned by farming families and others with rural roots.
Highly Experienced Farm Property Manager
- Partnering with Farmland Partners (NYSE:FPI), a large scale, sophisticated farm owner and industry’s leading REIT.
- Owns and manages over $1.0 billion of farmland assets across all main US markets and crop varieties.
- Over 20 years of farmland investing experience.
- Active deal-sourcing network and established underwriting capabilities.
Favorable USA Farmland Supply/Demand²: Growing Population and Shrinking Farmland
John S. Heneghan
PRESIDENT, LAST LEAF VENTURES, LLC
John S. Heneghan is the President of Servant Financial, Ltd., the Manager of Last Leaf Ventures, LLC, and the Manager of the Fund. Mr. Heneghan has substantial experience covering large family and multifamily offices providing advice on Alternative Investment Management. Prior to Servant Financial, Mr. Heneghan held executive leadership roles spanning both public and private accounting and finance roles. Mr. Heneghan holds a Bachelor of Science (High Honors) in Accounting from University of Illinois – Gies College of Business.
CHAIRMAN & CHIEF EXECUTIVE OFFICER, FARMLAND PARTNERS
Paul Pittman has served as FPI’s Executive Chairman and Chief Executive Officer since its initial public offering in April 2014. Prior to that, Mr. Pittman directly operated a 13,000-acre grain farm in Illinois and Nebraska and began investing in farmland in the mid-1990s. Early in his career, he was a lawyer and investment banker in London and New York City.
book a meeting
15 minutes meeting
30 minutes meeting
45 minutes meeting
The information provided herein (this “Website”) is for informational purposes only and does not constitute an offer or solicitation in any state or other jurisdiction to subscribe for or purchase any membership interests of Promised Land Opportunity Zone Fund I, LLC (the “Fund”) or other securities. Neither the visiting of this Website at any time nor any sale of membership interests in the Fund or a vehicle that makes any investment described herein shall under any circumstances create an implication that the information contained herein is correct as of any time after the launch date of this Website, nor give rise to a duty to update any information contained herein. This Website is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be complete. A prospective investor should carefully review the Confidential Investment Memorandum of the Fund dated May 2021 (the “Investment Memo”) and the Operating Agreement of the Fund and consider the investment objectives, risks, charges, and expenses before investing. An investment in the Fund involves considerable risk and is highly speculative. See the Risk Factors set forth inthe Investment Memo.
The investments on this Website are only made available exclusively to “accredited investors,” as such term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), that are capable of evaluating the merits and risks of an investment. The Fund has not registered or qualified the membership interests for offer or sale under the Securities Act, or the securities laws of any state or any other jurisdiction. The Fund is offering and selling the membership interests by way of a “private placement” exempt from the registration requirements of the Securities Act and applicable state securities laws pursuant to Rule 506(c) of Regulation D under the Securities Act and comparable state law exemptions.
The contents herein are not to be construed as legal, business or tax advice, and each prospective investor should consult its own attorney, business advisor, and tax advisor as to legal, business, and tax advice. Recipients of this Website agree that Last Leaf Ventures, LLC, the Manager of the Fund (the “Manager”) and Servant Financial, Ltd., the Manager of the Manager, or their affiliates and respective shareholders, members, employees, officers, directors, agents, and representatives shall have no liability for any misstatement or omission of fact or any opinion expressed herein.
This Website may include certain forward-looking statements related to the plans, forecasts,estimates, targeted returns and expectations of future events and opportunities (collectively,“Future Events”) by the Manager. Past performance and targets are not guarantees, forecasts or predictions and there can be no assurance that these targets or the Manager’s expectations regarding these investments will be met. Although the Manager believes that these estimates and forward-looking statements are based upon reasonable assumptions in light of information currently available, they are subject to various risks and uncertainties; therefore, as there are no guarantees of future results, if any of the assumptions prove to be inaccurate, results may vary substantially from expectations. Actual events and investment returns are difficult to predict, depend upon factors beyond the Manager’s control and may differ materially from the estimates and projections included herein.
Past performance does not guarantee future results. In considering any performance information contained herein, prospective investors should bear in mind that past or projected performance is not necessarily indicative of future results, and there can be no assurance that any Future Events or investment opportunities described herein will achieve comparable results, that target returns, if any, will be met, that the Fund will be able to successfully implement its investment strategy or that any investment will demonstrate each of the risk mitigating characteristics described herein. Future investments will be made under different economic conditions and will include different transactions than in the past. Any investment herein is subject to various risks, only a limited number of which are outlined herein. An investor may bear a loss and results may vary from those shown.
Each visitor of this Website further agrees that it will (i) not copy, reproduce or distribute this Website, in whole or in part, to any person or party without the prior written consent of the Manager; (ii) keep permanently confidential all information contained herein that is not already public; and (iii) use this Website solely for informational purposes. These materials are not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulations.
(1) Material prepared for informational purposes only. Not intended to provide, and should not be relied on for, tax advice. Consult your own tax advisors before engaging in any transaction.
(2) Source: USDA Census Data and ourworldindata.org.
(3) Source: NCREIF Farm Index.
No assurances can be provided that the Fund will qualify as a QOF or that, even if it does qualify, the tax benefits of the QOF Program will be available to any particular investor in the Fund.