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  1. Tax Incentives on Opportunity Zones Sunset in 2026, But There Is Still Time to Invest

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    Qualified Opportunity Zones (QOZs) were created by Congress in the 2017 Tax Cuts and Jobs Act to spur investment into distressed communities around the country. Investors are allowed to place capital gains from the sale of stocks, real estate or businesses into OZ funds without having to pay taxes on those capital gains. This is an investment strategy similar to 1031 exchanges except OZs allow the elimination of tax obligation whereas 1031s only defer tax obligations.

    If the investment is held for five years, a 10% exclusion of the deferred gain is realized; after 7 years that exclusion increases to 15%. After holding the investment in the fund for 10 or more years, the investor can realize a benefit of paying no taxes on the investment.

    Seven years into the 2017 Act, what do investors, future investors and potential land holders in QOZ areas need to know now, and is it still a wise investment?

    While one of the bigger benefits of investing in OZ funds expired at the end of 2021 (the ability to qualify for a 10 percent step-up in investment), the opportunity provided in the 2017 Tax Cuts and Jobs Act is still beneficial. The tax cut incentive has gained traction slowly, but 2022 marked the strongest year for OZ investment since its inception. Through 2026, investors can still access OZ incentives with no capital gains taxation if they hold the investment for at least a decade. The 2017 Tax Cuts and Jobs Act was designed with a 10-year lifespan and will sunset on December 31, 2026. Investing in Opportunity Zones is a generational opportunity to improve your community and reap tax incentives, and, with the Act sunsetting in 2026, investors have a limited time to take advantage. How to get started:

    To invest in an OZ, the investor must either:

    Create a Qualified Opportunity Zone Fund or

    Invest directly into a QOZ fund where at least 90% of the holdings are invested into businesses located within a QOZ.

    OZ funds can invest in either real estate development or start-up/spin-off businesses whose primary office/place of business is located inside the boundaries of the OZ.

    In West Virginia, 55 areas have been designated as Opportunity Zones over 30 counties. Regionally, parts of Morgantown, Fairmont, Clarksburg, and Grafton have been designated as OZs. Click here for a map of OZs.

    In commercial real estate, there are a couple ways to invest into a QOZ. The goal of the program is to spur development into distressed communities; therefore, one cannot purchase land under the QOZ program and just sit and hold the property. A developer can purchase raw land and make improvements to the land by developing a site where a working business entity is to be located. A developer can also purchase property with existing structures but must make investment into the property to ‘significantly’ increase the value of the property; significant is defined as at least doubling the value of the property.

    A popular new trend in Opportunity Zone investing is the chance to take advantage of the Act’s class of land identified as “the energy sector”. The energy sector includes fossil fuels and many designated QOZs are in areas renowned for energy production, like the Marcellus Formation in Pennsylvania.

    The details of the OZ fund program are fairly extensive. Please contact us at Black Diamond Realty or call your accountant or financial planner/advisor to further discuss the benefits of the OZ program.

    The properties below are Black Diamond Realty offerings that are available and located with an Opportunity Zone. Click on the addresses below to learn more about each offering.

    MORGANTOWN

    FAIRMONT

    CLARKSBURG

    GRAFTON

    MARTINSBURG

    Important Dates
    June 28, 2025 – Eligible capital gains recognized in 2024 must be invested by this date.
    June 28, 2026 – Eligible capital gains recognized in 2025 must be invested by this date.
    December 31, 2026 – Capital gains deferral benefit on Opportunity Zones expires.
    December 31, 2047 – The program is scheduled to fully sunset; after this date QOZ zones designations become inactive.

    Helpful Links
    IRS Website – Opportunity Zones
    Map of Opportunity Zones

  2. Latest White Oaks Project, with Near $3 Million Price Tag, Ready to Wrap up for $10 Million-Plus Business

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    A multi-million-dollar project at the White Oaks development that began in January is still going strong eight months later. Not only going strong, but nearly finished.

    Since the start of the project in an area described as White Oaks Phase II-A, roughly 350,000 cubic yards of dirt has been moved at the site. Most of the work is being done to facilitate the future home of Jenkins Subaru and Jenkins Hyundai.

    “The contractor is just about ready to wrap things up and should be putting the finishing touches on the earth work,” said Austin Thrasher, the project manager representing High Tech Corridor Development who is responsible for development at White Oaks. “As we get into (this)week, I look for them to be spreading the topsoil.”

    Once finished there will be plenty of new, flat acreage available. The Jenkins family will assume 17.7 acres at White Oaks, 13.7 of which will be usable. The additional four acres will be hillside. All of the land is visible from the interstate.

    The Jenkins family of dealerships in Bridgeport will eventually move from their current location on Lodgeville Road and it is anticipated to begin construction in 2025. The current Jenkins property, which can be seen from the northbound side of I-79, is roughly eight acres. The current building is roughly 4,600 square feet. The new site will house buildings for both Subaru and Hyundai. The size of those buildings will be determined at the time of construction with input from the manufacturer. The project, according to the Jenkins family, will top $10 million.

    The entire work area will cover 40 acres, City Engineer Beth Fox said earlier this year. For those not familiar with the site work, it is in an area stretching from Route 131 to an area near The Thrasher Group building that is visible from the interstate.

    As part of the earth moving, another flat parcel was created, Thrasher said. He said it covers roughly seven acres and is separate from what the Jenkins family will obtain.

    Access will be able to be reached to the Jenkins acreage through White Oaks Boulevard. It can also be reached, said Thrasher, from a lower area before the main White Oaks entrance off of Saltwell Road known as Wildlife Lane. Those won’t be the only entrances to the new acreage.

    “We’ll be working on a turn lane to access the additional seven-acre parcel in the future; a left turn lad directly into that pad,” said Thrasher. “It is down from the assisted living facility you can see and during the construction there will always be one lane open so it should not disrupt traffic. If it does, it will be insignificant.”

    That leads to the question of whether the new pad was built to meet the needs of a client that was coming aboard. The answer, said Thrasher, is no.

    “That’s up for sale. We’ve had a few looks at it, but nothing significant or solid as far as something serious,” said Thrasher.

    Doss Enterprises handled the $2,851,282.70 earth-moving project, along with the placing of some infrastructure, as a lot of infrastructure was already in place. The Thrasher Group has handled the engineering.

    Original Article by Jeff Toquinto on connect-bridgeport.com
    Original Article Here
  3. Exceptional Development Opportunity within the Eastern Panhandle of WV

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    Black Diamond Realty is pleased to present this exceptional development opportunity within the Eastern Panhandle of West Virginia. This property offers 54 (+/-) acres of undeveloped flat land and is conveniently located to both I-81 and U.S. Highway 11. The subject property is highly visible from I-81 and is situated less than 0.3 mile away from Exit 5. The undeveloped land is in a great location. It is ideal for commercial users looking for a development opportunity while being surrounded by a plethora of residential communities. Within this article you will learn more information about the Eastern Panhandle, specifically Berkeley County, the top employers in the area and demographics for the subject property.  Please also invest a few minutes to review Black Diamond Realty’s detailed marketing flyer and video.

    Since moving into the Eastern Panhandle, our graphic designer / office manager for the Martinsburg office, Andrea Icenhower, has attended several events for both the Berkeley Co. and Jefferson Co. She has had the opportunity to tour spaces like the Macy’s fulfillment center, Quad Graphics Facility, the Clorox Campus, the Rockwool Facility and so much more. Andrea was also able to attend the Annual Eastern Panhandle Economic Outlook Luncheon led by John Deskins and his team to learn more about the economic growth in the Eastern Panhandle. The research in this article is supported by those educational meetings and tours.

    West Virginia’s Eastern Panhandle (EPH) has been the state’s strongest economic region for well over a decade, experiencing sustained growth in population, employment, income and a host of other major economic indicators. The three-county area, Berkeley, Jefferson and Morgan County, has surpassed pre-pandemic levels for total employment and has seen its adult workforce increase to more than 100,000 employees. The Eastern Panhandle’s manufacturing sector is expected to record additional job growth over the next five years, expanding at a rate of nearly 0.7 percent per year. Eastern Panhandle’s proximity to and economic ties with the DC Beltway economy is expected to drive opportunities for a range of high-tech and front-office jobs in defense and non-defense federal contracting as well as the private sector. (Source: ©2022 by WVU Research Corporation / business.wvu.edu/bber)

    Located at the gateway to the Shenandoah Valley in the heart of the Eastern Panhandle, Berkeley County is known for its unique history, beautiful scenery, robust industry, and more. Major population centers and business markets within a five-hundred-mile radius of Berkeley County include Washington, D.C., Baltimore, Maryland, Philadelphia, Pennsylvania, Richmond, Virginia, and New York City, New York. All these major markets are readily accessible from this County via Interstate 81. Berkeley County’s geographic location makes it unique for business and leisure while enriching quality of life with its “small town” character and sense of community. Berkeley County has a total population of 126,534 and a median household income of $65,826. Total number of businesses is 2,635.

    Berkeley County is regarded as the Eastern Panhandle’s economic center. In addition, Berkeley County has established itself as the leading county in the state in terms of absolute job growth. Over the past decade, employment has increased by 8,300. Most of the county’s job growth can be linked to major new openings such as the Macy’s fulfillment center and Procter & Gamble. In the last year, the employment rate in West Virginia has increased by 3.8%, giving businesses 26,000 new employees. With an unemployment rate of 2.7%, Berkeley County’s workforce continues to stay well above the national and state averages, providing businesses an excellent opportunity to acquire and retain qualified talent. Even more skilled workers will be able to serve businesses across the county as more people locate to Berkeley County.

    The top 10 Employers in Berkeley County

    The top 10 Employers in Berkeley County include; Berkeley County Board of Education, Macy’s, United States Department of Veterans Affairs, Quad Graphics, Procter & Gamble, Walmart, Or-gill, Berkeley County Commission, FedEx, Aker Solutions. Procter & Gamble’s manufacturing plant added nearly 1,400 jobs and fostered the co-location of several hundred new jobs in packaging, logistics and other supporting businesses at the Tabler Station campus. More recently, the region received an additional boost in payrolls following the mid-2021 and fall-2022 openings of Rockwool and Clorox manufacturing facilities in Jefferson and Berkeley counties, respectively. Procter & Gamble’s production facility has represented a major transformative shift in the Eastern Panhandle’s industrial base. The $500 million facility along the 1-81 corridor in Berkeley County produces a range of consumer cleaning and personal products, including Swiffer, Tide, and various soaps and deodorants. Overall, the facility now employs more than 1,600 workers and has spawned the addition of several hundred jobs at packaging and logistics operations in the area.

    The infographics below contain data provided by Esri, Esri and Bureau of Labor Statistics Esri and Data Axle. The vintage of the data is 2022, 2027. Spending facts are average annual dollar per household. The statistics provided, which includes a 3-5-10 mile radius, are based upon our 54 (+/-) acres at the Inwood exit.

    The Eastern Panhandle has consistently ranked as West Virginia’s fastest-growing region for the past two decades. Between 2001 and 2021, Berkeley, Jefferson and Morgan counties combined to add nearly 64,000 residents. It is expected for employment to grow at an average annual rate of between 0.7 to 0.8 percent per year in the EPH through 2027.

    The Eastern Panhandle has been and projects to remain an economic bright spot for West Virginia.  West Virginia’s Eastern Panhandle is a premier location for a new business or a development project. Our Inwood offering has public infrastructure (new roundabouts), all public utilities, no zoning restrictions, easy accessibility, and is close to many amenities.

    Don’t miss this prime piece of commercial real estate!
    Call our Eastern Panhandle office today at 304.901.7788.

    View our Marketing flyer for the Property 

    View our Marketing Video for the Property

  4. White Oaks continues development in 3-phase build-out

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    White Oaks continues development in 3-phase build-out. The White Oaks planned business community comprises 470 acres that are home to offices, FBI support services, medical support services, oil ad gas businesses, national retailers, restaurants and vital amenities.

    Located at the intersection of Interstate 79 and W.Va. 279, the busy corridor sees an estimated average of 48,500 vehicles per day. It is adjacent to the $350 million United Hospital Center, at the doorstep of the FBI’s CJIS Division and the Biometric Center of Excellence. White Oaks is also located in the heart of Marcellus Shale play.

    Retail Village Building 1 is fully occupied, with the newest tenants being Rominger Dental, Bonnie Belle’s Pastries and Hermasilla’s Deli. They all opened their doors in 2017.

    Retail Village Building 2 is under construction, with the first tenant to be Starbucks, Bridgeport Community Development Director Andrea Kerr said.

    Starbucks occupies 2,200 square feet of the 8,749-square-foot building located directly across from Building 1, she said.

    “Starbucks is estimated to cost about $175,000, while the entire Retail 2 shell is $884,320. The second building will be similar in size to the first one, with room for additional tenants,” Kerr said.

    Thrasher said Starbucks will be located in the far right end of Retail Village 2 and feature a drive-through.

    “We are looking to turn over that portion of the building to the company by June 1,” Thrasher said. “It will also have a 550-square-foot patio. I anticipate it opening late this year.”

    Cove Run Construction is doing the site work on Retail 2. Lee Reger Builds is the building construction contractor.

    “There are four more bays available, with interested parties in discussion. We have no final contracts at this time,” Thrasher said.

    Clear Mountain Bank will be located directly behind Retail Village 2. Cove Run is doing the site work.

    “They are about ready to bid the architectural work,” Thrasher said. “Regional Eye Associates will be located near Friday’s, with Cove Run preparing the site and Elite Custom Builders doing the construction.”

    Phase II and Phase III are being marketed now, with Elite Custom Builders to be located across from the W.Va. 131 entrance to White Oaks near Bear Express and the Shell fuel station in an area referred to as The Wedge, Thrasher said.

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    A large vehicle dealership, Freedom Kia, opened in 2017 in Phase III of White Oaks, located off W.Va. 131.

    Hermasilla’s Deli Market, a longtime staple of the Fairmont community, recently opened the doors to a 32-seat second location at White Oaks.

    Along with its signature sandwiches — which feature hand-sliced meats, a wide selection of cheeses and an array of toppings, condiments and vegetables — the establishment also offers salads and sells meats and cheeses in bulk.

    “White Oaks has been very aggressive in developing their property. They don’t stop in the winter. It is a year-round operation,” Kerr said. “It is good for them and great for us. It is a fantastic partnership that we hope to see continue for many more years.”

    Craig Baker, Architecture Division manager for the Thrasher Group, agreed with that sentiment.

    “White Oaks should be commended for their steadfast commitment to the architectural design covenants of the park. They had a vision of what they wanted the park to be and stuck with it,” Baker said. “One thing that makes White Oaks special is how they continually strive to maintain their identity as one of West Virginia’s premier business locations. With the addition of the park and trail system, White Oaks has maintained its identity as a great place to work and play.”

    White Oaks Phase II does not currently have any lots sold. It is located just past the Manchin Clinic Assisted Living Facility that opened late last year.

    Thrasher explained that while Phase I and II are primarily billed as a high-end business park, Phase II will also be for industrial use. Freedom Kia is the first business to locate in that area.

    Freedom Kia was previously located on Emily Drive. However, it began to outgrow its space and decided to move in October.

    “It came to a point where the volume of sales, our service department could not support. It was a situation where to continue to grow and provide our customers the support and service we want them to continue to have, we needed to give them a facility to be able to do that,” General Manager Jadd Buchanan said.

    The dealership facility cost around $5 million, an investment that allowed the company to stay local.

    “This became our home. We built a business here, and we didn’t want to abandon the customers we had sold to or serviced over the years,” Buchanan said. “We wanted to provide a location that was much more user-friendly as far as access — now it’s right off I-79, Exit 125 on Saltwell Road. It’s easier to get to for our employees who live in the area, and our residents in this direct area, so I think that was an easy decision.”

    In its new location, Freedom Kia has tripled the size of its service department, having gone from four lifts to 12, and added a substantial amount of inventory. The space also includes a car wash, which is complimentary when a car is brought in for servicing, and it’s generally more accessible.

    General Sales Manager Dorsey Larew said the larger facility has several perks.

    “We can house more mechanics, and therefore get you in and out faster. Sales display was a little tough when you’re parking in a parking lot versus an actual dealership that was built for that, so that’s been good,” Larew said. “With the lot, you can drive around and be able to look at all of our cars without having to get out of yours.”

    Located at 97 Joy Lane near Bridgeport, accessibility is a prime feature of the new location.

    “We’re a lot more convenient to get in and out of,” Larew said. “Going down Emily Drive, it was tough to get in and out.”

    In addition to offering online credit applications and service appointments, a two-year maintenance plan and a lifetime of state inspections on every car purchased at the location, Freedom Kia also has people who truly enjoy their work, said Jeannie Boyles, who has been the receptionist for six years.

    “We have great people who work here. They’re dedicated, friendly, and are happy to be here,” Boyles said. “That’s important for the company — to be able to come to work and know what you’re doing. It brings a lot of customers in from around the area, and the customers appreciate that, knowing we care about them that much.”

    For the future, Buchanan is looking forward to continued growth and being able to enhance customer service even more, staying focused on giving every individual personal help. At the new location, Freedom Kia offers several complimentary amenities, including local transportation, a kids entertainment room, and more.

    Baker-Hughes owns a parcel in Phase III, but there has been no word on the future plans of the company for the site, Thrasher said.

    “We work with other developers, but own main developer is White Oaks Business Park and we work with Black Diamond Realty, Morgantown.

    Staff writer Darlene J. Swiger, The Exponent Telegram

  5. 2017 Sectors In Demand

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    Our team is often asked, “How is the market?” Some brokers may respond with a generic, “good”. If you are interested in a general response, we are happy to report the market is currently “great.” Black Diamond Realty’s pipeline is the busiest it has been in its four-year history. That said, we suspect you are more interested in a sophisticated, detailed response. Look no further; we have your answers.

    What…. Sectors?

    At Black Diamond Realty, one of our competitive advantages is our thorough and detailed process. We track every single lead. This allows us to present you with accurate statistics that serve as a reflection of market demand across all sectors. Keep in mind our statistics are influenced by Black Diamond Realty’s current inventory of assets. The following statistics provide the number of sector leads since January 1, 2017:

    Industrial = 83        Office = 59         Retail/Restaurant = 58         Land = 32        Investment = 32

     

    Why… Macro vs Micro?

    Do you believe in the mantra that tells you to focus on what you can control? We do, too. However, we also believe it is not wise to bury your head in the sand. It is critical to think about how macroeconomic factors influence regional market demand. Two positive influencers are currently in play.

    Historically speaking, interest rates remain near all-time lows. This bodes well for investors looking to get into investment opportunities. Although cash is king, we are seeing a lot of companies and individuals levering up to take advantage of favorable bank rates. Refinances have flocked through banks’ doors. Sellers also like low interest rates because funds are cheaper to secure which results in higher valuations while still clearing bank debt-coverage ratios.

    The second macroeconomic factor relates to the reenergization (pun intended) of Marcellus Shale activity. Oil and gas pricing is fluid, literally and figuratively. Pricing has seen nominal rises over the past 12 months. However, recent industrial space demand leads us to believe many companies on the front lines sense prices moving north in the coming years. We suspect their goal is to get established in this area while industrial real estate values are still relatively inexpensive. This will heighten their ability to capture the market and capitalize on contracts as things ramp up. Many articles reference cracker plants and pipelines as the saving grace to lowering the current supply glut. These two variables are currently progressing in a very big way. The O&G industry has potential to replace job losses from coal. Time will tell if this is a long-term regional industrial revolution.

    Where?… Concentrated Areas of Development

    Jobs drive economic growth, and there are plenty of jobs coming to two booming exits along the I-79 corridor. University Town Center/West Ridge and White Oaks Business Parks are the two distinct front runners when considering development hubs in north central WV. University Town Center and WestRidge, both located at I-79, Exit 153, lead the charge as driving forces behind retail and office development in Monongalia County. Simply put, this new exit has created significant buzz in Monongalia County which is expected to remain in play for the next three to five years. A lot of announcements will happen in the coming months. 2018 is slated to be a heavy construction year for this development.

    Thirty miles south of Morgantown, White Oaks Business Park is leading the development charge for Harrison County. Numerous Class A office buildings, spanning a plethora of services, hotels, retail space and several restaurants round out the line-up for this state-of-the-art development. White Oaks is an upscale development, which includes sidewalks throughout and pristine landscaping, while serving as “the talk” of Harrison County as it capitalizes on close proximity to the interstate, UHC and FBI’s Campus. Growth and positive economic announcements are projected to continue in the coming years.