Jackson Walker Advises Bitterblue Investments on Initial Closing of Real Estate and Opportunity Zone Funds

June 24, 2020 | Client Results



Jackson Walker counseled Bitterblue Investments on the formation and initial closing of its Bitterblue 2020 Fund I and Longhorn Quarry Opportunity Zone Fund, both of which have already commenced their investment programs and are actively deploying capital.

Bitterblue Investments (BBI) was formed to finance the significant pipeline of development opportunities for Bitterblue, Inc., a San Antonio-based land development company that specializes in mixed-use development for commercial properties. For more than 70 years, Bitterblue has helped shape San Antonio’s landscape through several mixed-use projects, including the Alamo Quarry Market, Longhorn Quarry, Rogers Ranch, Shavano Business Park, Shavano Park, Oakwell Farms, and Inwood.

The Jackson Walker team representing BBI is led by private equity partners Bradley S. Knippa and David A. Snyder and includes tax senior counsel Argyrios C. Saccopoulos and corporate associates Wilson B. Albright and Jonathan A. Bryant.

“As the nation’s second-fastest growing large city, San Antonio is a dynamic town rooted in Texas history. We’re honored to partner with Bitterblue in their efforts to revitalize certain areas of the city while preserving the landmarks that make it so special,” Brad said.

BBI Fund I

The Bitterblue 2020 Fund I (BBI Fund I) is a real estate fund designed to acquire and develop real estate in the San Antonio area. Through this investment fund, Bitterblue is able to deploy capital to purchase tracts of land in the San Antonio-New Braunfels metropolitan service area for mixed-use, residential, and commercial development.

Longhorn OZ Fund

With the help of a new type of investment vehicle created by the Tax Cuts and Jobs Act of 2017, investors are able to reap significant tax benefits for reallocating, or “rolling over,” capital gains into long-term investments near geographic areas that have been designated as low-income communities. Following the initial closing, the Longhorn Quarry Opportunity Zone Fund (Longhorn OZ Fund) began deploying capital to continue the development of the Longhorn Quarry commercial property.

Situated near the intersection of I-35 and NE Loop 410, Longhorn Quarry contains one of the few remaining large stretches of undeveloped land within Loop 1604 on the growing Northeast side of San Antonio. Although Longhorn Quarry was recently named an opportunity zone, Bitterblue has been developing the land for over 29 years.

Prospective investors seeking qualified opportunity fund tax benefits should consult their tax counsel regarding all aspects of the program and its requirements. For additional information about opportunity zones, view the following articles from Jackson Walker:

Meet JW

Texas born and raised more than a century ago, Jackson Walker continues to advance the world of business by helping companies of all sizes navigate today’s increasingly complex, interconnected legal landscape. With more than 400 attorneys across seven offices, we are the fourth-largest law firm in the state and have been recognized by Law360 as a “Texas Powerhouse” and an “elite law firm” that regularly provides counsel to industry-leading clients on highly complex transactions. For explore the Firm’s experience with fund formation, investment management, and opportunity funds, visit our Corporate & Securities, Real Estate, and Tax practice area pages.


In This Story

Wilson B. Albright
Associate, Austin
Jonathan A. Bryant
Associate, Austin
Bradley S. Knippa
Partner, Austin
Argyrios C. Saccopoulos
Senior Counsel, Austin
David A. Snyder
Partner, Austin

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