Opportunity Zone Development

With a population of 13,000 and 25,000 employed at NAS Patuxent River, many employees commute from other parts of southern Maryland to work. This trend is reflected in the relatively small population of Lexington Park compared to St. Mary’s County overall.
Given the transient nature of the air station as the town’s major employer, rental rates are high, averaging in the $2-$2.20/SF/month and inventory is low.
Growth: The Naval Air Station (NAS) Patuxent River is expected to grow significantly over the next decade. This growth is projected to be driven by expansions in its research, development, testing, and evaluation (RDT&E) capacities, particularly in areas such as unmanned systems and cybersecurity.

Tax Advantages: Opportunity Zones offer significant tax incentives to investors. By investing realized capital gains into Qualified Opportunity Funds (QOFs), investors can defer capital gains taxes.
Exclusion of Gains: If an investor holds an investment in an Opportunity Zone fund for at least ten years, they are eligible to exclude any additional gains from the investment. This means the investor pays no taxes on any appreciation of the investment made in the Opportunity Zone.
Step-Up in Basis: Investors can reduce their deferred capital gains liability by holding the investment in the Opportunity Zone for at least five years. After five years, the basis of the original investment increases by 10%. If the investment is held for seven years, the basis increases by an additional 5%, for a total of 15%.

Proximity to Bases: Built-to-rent properties located near military bases can appeal to service members seeking housing close to their duty stations. Proximity to base facilities and amenities, such as commissaries, schools, and recreational areas, can enhance the attractiveness of these properties.
Deployment Considerations: Military personnel are often subject to deployments and relocations, which can impact their housing needs. Built-to-rent properties in military areas may need to offer flexible lease terms or provisions for temporary reassignments to accommodate the transient nature of military life.
Built-to-rent properties in military areas serve a unique market characterized by the housing needs of service members, their families, and civilian personnel. By addressing these needs and considerations, developers and investors can contribute to the well-being and readiness of military communities while pursuing viable real estate opportunities.

The property is located in Lexington Park, Maryland, a growing community in St. Mary's County known for its proximity to Naval Air Station Patuxent River, a major employer in the region.
Lexington Park offers a range of amenities such as shopping centers, restaurants, and recreational facilities, including the nearby Patuxent River Naval Air Museum and Elms Beach Park.
The area has a diverse population due to the presence of the naval base, with a mix of military personnel, government contractors, and local residents contributing to the community's vibrancy.
The property's location in Lexington Park offers potential for capital appreciation and rental income due to the demand for housing and commercial spaces driven by the area's economic growth and development.

Often referred to as Pax River Naval Base, is a major United States naval airfield. It's primarily used for testing and evaluating naval aircraft and systems. Pax River is home to the Naval Air Systems Command (NAVAIR), the Naval Test Wing Atlantic, and numerous other tenant commands. It's a critical facility for the U.S. Navy's research, development, test, and evaluation efforts related to naval aviation.

The Center is being redeveloped to a mixed-use retail center replacing the 50-year-old Millison Plaza in Lexington Park Maryland. The existing shopping center includes 193,284 gross leasable square feet of retail stores, which will be refurbished and expanded with the addition of an Aldi grocer and a Starbucks coffee shop. With the addition of the Aldi the property will total 204,759 square feet of retail space with 1,058 parking spaces.