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Kauai

Opportunity Funds 90% Test Date: June 30 2020

According to industry experts, Qualified Opportunity Funds (QOFs) formed under IRS Section 1400Z-2 must perform “the 90% test” twice a year, and the next test date is June 30, 2020. QOFs must either have 90% of its assets in Qualified Opportunity Zone property or face non-compliance penalties.

There is a small cache of Kauai properties located in the South Kauai Opportunity Zone which may be a good fit for QOFs, and each transaction should easily meet the June 30, 2020 test date:

1. 5118 Lawai Road Poipu

MLS #630735 | $1,449,000 | 3,076 sq ft living | 16,424 sq ft land

Located near the eastern end of Lawai Road and the Shops at Kukui’ula, this single level three-unit home is a two-block stroll to Baby Beach and is being offered for sale with the adjacent vacant lot. The property features one of the best-tasting Avocado trees in the area, as well as Mango, Star Fruit, Guava, Tangerine, Lime and Fig trees.

2. Oceanfront 4546 Lawai Road Poipu

MLS #635680 | $1,500,000 | 9,360 sq ft vacant lot

This level parcel offers 120 feet of ocean frontage, with coastline views to Spouting Horn looking west, views of Kukui’ula Beach looking east, and the winter sun setting into the blue Pacific Ocean.

Located near the western end of Lawai Road, the Kukui’ula private community, and the world-renowned National Tropical Botanical Garden, this parcel features an 8-foot seawall, a septic system, and water meter. It includes the seller’s architectural plans for a two-story three-bedroom home with attached garage.

3. Oceanfront 4842 Lawai Road Poipu

MLS #631700 | $2,800,000 | 1,988 sq ft living | 11,105 sq ft land

This two-story 3-bedroom 3-bath 4842 Lawai Road property was built in 1999 and is currently the lowest priced oceanfront home listed on the Poipu, Kauai market, priced $257,300 lower than County of Kauai tax assessment.

Lawai Road coastline, Poipu Kauai, looking west

Overlooking South Kauai’s iconic surf breaks and across Lawai Road from the Kukui’ula private golf course, this custom two-story home features 2,788 sq ft of indoor-outdoor living. The seller’s part-time residence for nearly two decades, the property’s expansive lawn and palm trees create its casual vibe: All that’s needed is a hammock strung up between two of the property’s ocean side coconut trees.

Lawai Road coastline, Poipu Kauai, looking east

4. Oceanfront 4838 Lawai Road Poipu

MLS #623540 | $4,200,000 | 3,221 sq ft living | 9,905 sq ft land

Built in 2004 to overlooks South Kauai’s surf breaks and across Lawai Road from the Kukui’ula private community, this custom split-level 5-bedroom, 5-bath oceanfront residence features 3,965 sq ft of oceanfront indoor-outdoor living. The buyer will enjoy winter sunsets and humpback whales, summer surf swells, and year-round Hawaiian sea turtles on its shoreline from its large covered lanai.

With central air-conditioning throughout the interior and its oceanside whirlpool, the property is a popular licensed vacation rental home, and the furnishings are included in the list price.

Looking For A Short Catch-up Read On Opportunity Zones?

Click to read the brief story behind the legislation in my October 2019 Sean Parker’s Opportunity Zones: A Hawaii Perspective, and contact me for additional Opportunity Zone property suggestions. As always, please discuss investment plans with your financial advisers.

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