Tack closed its latest acquisition of three properties in Danville, VA. The deal is structured as an Opportunity Zone investment, which gives investors the ability to incur no federal capital gains taxes at exit.

To qualify, the properties will undergo substantial renovation, including installing central air, adding washer/dryer hookups, replacing roofs, painting exteriors, redoing parking lots, replacing drain lines, and renovating units. This should be the first of many Opportunity Zone investments. In 2027, the eligible zones refresh, providing new opportunities, and additional tax benefits renew, including a five-year deferral on capital gains invested into Opportunity Zones.

In April, Tack focused on closing its two acquisitions under contract. With Danville closing in April and the second acquisition scheduled for May, Tack is prioritizing execution over pursuing new deals for now.

Both 1710 and the Gardens at Manchester exceeded their net operating income targets for Q1, mainly due to better-than-expected occupancy and collections. With spring leasing underway, both properties are focused on converting interest into tours and tours into leases, and on renovating units.